Credit Risk Retention Rule Comment Period Extended

more+
less-

In late March, after considerable delay and reported behind-the-scenes interagency debate, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, the Department of Housing and Urban Development, the Federal Housing Finance Agency, and the Office of the Comptroller of the Currency (the “Joint Regulators”) issued a notice of proposed rulemaking (the “NPR”) that included text of a draft rule on credit risk retention in securitizations proposed to be adopted by each Joint Regulator as required by section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd Frank Act”). The NPR solicited public comment on the proposed risk retention rule, and established a June 10, 2011 deadline for the submission of comments. On June 6, 2011, the Joint Regulators extended the comment deadline to August 1, 2011.

The Dodd-Frank Act requires that the section 941 credit risk retention rule be finalized by April 17, 2011 (a deadline already missed), and provides that the rule will become effective one year after publication of the final rule for residential mortgage-backed securities (“RMBS”) and two years after such publication for all other types of asset-backed securities (“ABS”). When one considers that it will likely take the Joint Regulators several months following the comment deadline to adopt a final rule, it is evident that extension of the comment period has further pushed out the effective dates of the risk retention rules considerably beyond the April 2012 (for RMBS) and April 2013 (for other ABS) effective dates originally envisioned by Congress.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:

more+
less-

Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×