The clock is ticking.
Final rules requiring sponsors of securitizations to retain “skin in the game” were published in the Federal Register today. That means the rules come into effect for residential mortgage backed securities in exactly one year, until Dec. 24, 2015. For securitizations of their kinds of assets, including commercial mortgages, auto and student loans and below investment grade corporate loans, the rules come into effect tin two years. Deals issued up to that point will be grandfathered.