Until recently, much of the attention surrounding "put-back risk" has focused on the legal aspect, notably whether judges will require lenders to repurchase loans they sold to securitizers.

But bankers are now starting to wonder about the potential regulatory costs of this risk, as observers predict it could cause the banking agencies to raise a firm's capital, reserve and liquidity requirements.

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.