The chief author of the Dodd-Frank Financial Reform Act took exception to what he called "the revolt against risk retention," saying requiring originators to hold 5% of the loan amount on their books is "one of the central things we did in the bill."

Rep. Barney Frank, D-Mass., said he is "greatly disappointed" in industry efforts to persuade law makers to review the requirement. "There are things we should look at again," the ranking member of the House Financial Services Committee said, "but resistance to risk retention is greatly mistaken."

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