A question posed by Sen. David Vitter last week has sparked fears among investors about what exactly two top administration officials meant when they responded to whether the GSEs would be exempted from pending risk-retention requirements.

To many, Housing and Urban Development (HUD) Secretary Shaun Donovan's statement that there were no plans for any exemption was ambiguous at best, leaving open the question of whether the GSEs will have to hold more capital as a result of the rule or if they will instead be largely unaffected.

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