MBS issuers have long enjoyed an exemption from onerous provisions of the Investment Company Act (ICA) since the start of mortgage securitization in the early 1980s, but all that could change under a new proposal being weighed by the Securities and Exchange Commission (SEC).

The commission is revisiting the broad exemption known as 'Section 3(c)(5)' in "light of the role that MBS issuers played in the financial crisis," the SEC said.  

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