Banking regulators took a critical step forward on Tuesday to establishing national mortgage servicing standards by cutting a deal to include some new rules as part of a related risk retention proposal.

The agreement comes after months of bitter infighting between the banking agencies, with the Federal Deposit Insurance Corp. (FDIC) arguing that servicing standards must be part of risk retention, while the Office of the Comptroller of the Currency insisted they did not have the legal ability to do so.

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