A key obstacle to re-launching private-label securitization has always been uncertainty about new regulations. But the market is about to get a dose of clarity.

After toiling away for three years, regulators are finally set to complete a rule this week requiring securitizers to hold 5% of credit risk on loans sold to investors. The rule, mandated by the Dodd-Frank Act, would exempt so-called "qualified residential mortgages" from risk retention.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.