Two top Obama administration officials said Tuesday that the GSEs would not be exempted from a pending proposal to help standardize mortgages sold into the secondary market.

Department of Housing and Urban Development (HUD) Secretary Shaun Donovan and Treasury Secretary Tim Geithner signaled that the GSEs would have to comply with a plan that forces lenders to retain 5% of the credit risk of loans they sell unless they qualify for a safe harbor that establishes strict underwriting standards.

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