Nearly 40 senators have now signed onto a measure urging federal regulators to modify a risk retention proposal and adopt changes that would pave the way for a broad exemption for securitized mortgages that have a low risk of default.

The letter, drafted by Senators Mary Landrieu, D-La., Kay Hagen, D- N.C., and Johnny Isakson, R-Ga., has 35 Senate co-signers calling for a rewrite of the proposal that requires securitizers to retain 5% of the credit risk on loans.

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