Six federal agencies issued a revised rule aimed at aligning the Dodd-Frank law’s risk retention requirement with a new underwriting rule from the Consumer Financial Protection Bureau (CFPB), Bank Credit News reported on August 30.
The proposal addresses a law first introduced in 2011 by the Department of Housing and Urban Development, FDIC and Federal Reserve, among other government organizations.
The new version of the law seeks to address concerns within the financial industry that strict requirements would increase the cost of mortgages. For more on the new rule proposal and the past controversy surrounding it, click here.
