Federal regulators on Wednesday proposed aligning new securitization requirements with a recent Consumer Financial Protection Bureau underwriting rule in a move likely to please banks and housing advocates.The Federal Deposit Insurance Corp. board issued a second proposal designed to implement a Dodd-Frank Act provision requiring 5% credit risk retention by securitizers. As expected, the agency's new plan would eliminate down payments as a requirement for being a "qualified residential mortgage" — which is exempt from risk retention requirements — and calibrates the QRM standard with the recent CFPB rule related to "qualified mortgages."

The new proposal — which is being released jointly with five other agencies — is a victory for mortgage bankers and housing advocates that had fiercely criticized the first proposal, released in 2011, that limited QRM loans to those with a 20% down payment and borrowers with strong credit histories. They argued that approach could limit credit for many worthy borrowers.

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