The Federal Reserve Board also proposed a rule that would require ABS sponsors to retain at least 5% of the credit risk of the assets underlying the securities.
The rule, which will be proposed jointly with five other federal agencies, would offer sponsors with different options for meeting the risk-retention requirements under the Dodd-Frank Act.
For the full release from the Fed, please click this link.
Ealier today the Federal Deposit Insurance Corp. voted to approve proposing risk retention rules together with other federal regulators.
Comments to the rules must be received by June 10.