The Federal banking regulators started leaking their mortgage risk retention rules yesterday afternoon.
The final proposed language did little to surprise except for the role of the GSEs. It stated that Fannie Mae and Freddie Mac are able satisfy the risk retention requirement via their guarantees, which cover 100% of principal and interest, for as long they are under conservatorship.
The regulators are due to approve the rules this week and issue them for public comment thereafter.
To access the copy of the rules from ASR sister publication National Mortgage News, please click this link.