Comment Period Extended on Risk Retention Proposed Rulemaking

This story appeared in Bank Digest.

The Fed, Federal Deposit Insurance Corp., Federal Housing Finance Agency, Securities and Exchange Commission, Office of the Comptroller of the Currency and Department of Housing and Urban Development have extended the comment period on a proposed rulemaking to implement the credit risk retention requirements of the Dodd-Frank Act. The comment period was extended to Aug. 1, 2011, to allow interested persons more time to analyze the issues and prepare their comments. Originally, comments were due by June 10, 2011. The proposed rule generally would require sponsors of asset-backed securities to retain at least 5 percent of the credit risk of the assets underlying the securities and would not permit sponsors to transfer or hedge that credit risk.