The Federal Deposit Insurance Corp. (FDIC) has issued a proposed rule on securitization standards that include a 5% risk retention requirement on newly issued MBS by depositories.

The new standards are part of the agency's revision of "safe harbor" policies with regard to receivership assets. The current safe harbor assures MBS investors that FDIC will not seize the underlying mortgages of MBS sold by a bank that later fails.

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