One of the most important pieces of the Dodd-Frank Act is set to start falling into place Tuesday as regulators offer a plan that would establish stringent underwriting standards for most mortgages, provide limited new rules for servicers, and detail how institutions must retain some risk of loans they intend to sell to the secondary market.

The risk retention proposal is likely to draw protests from the banking industry and concern from lawmakers because it is so sweeping and may reshape the entire lending business.

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