Mortgage lenders and consumer advocates — two lobbies usually busy opposing each other — have joined forces to urge regulators to ease up on proposed risk retention requirements, arguing they will result in a credit crunch.

The Mortgage Bankers Association (MBA) is teaming up with several groups, including the National Community Reinvestment Coalition (NCRC), Consumer Federation of America, Center for Responsible Lending and the National Housing Conference, to say in a united message that regulators took an overly narrow approach when they outlined in March which loans would be exempt from the new requirements. They are planning a joint press conference Thursday, and are also expected to meet with regulators and lawmakers to emphasize their concerns.

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