The originators of subprime mortgages and securitizers would have to retain an interest in any securities sold to investors under a subprime lending bill House Financial Services Committee chairman Barney Frank, D-Mass., is drafting.

"We are going to have originator liability," the chairman told a Washington meeting of the National Community Reinvestment Coalition (NCRC). Frank said the originator will be in the first loss position and the issuer of the mortgage-backed security would be the "next one in line."

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