On Wednesday, six federal agencies tasked with regulating banking and housing finance released a 499-page proposal for a rule mandated by the Dodd-Frank Act that requires banks to retain a portion of the risk created in securitizing mortgages. The provision was intended to ensure that lenders have some “skin in the game” to prevent them from loosening mortgage standards for loans packaged into securities, a phenomenon thought by many to have contributed to the 2008 financial crisis.
A key feature of the rule is the definition of a “qualified residential mortgage” — a loan that meets high underwriting standards that would be exempt from the risk-retention rule.
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3 comments:
First you have to see who crafted the bill,Barney and Chris then look at their motives.Was it to benefit all of us or just rich donors?I believe the latter.
Ah yes,Chris Dodd and Barney Fag..uh I mean Frank. The architects of the devaluing of every home in America in their Obama-care style "Homes for everyone" plan in the early 2000's. After they crashed the housing market, of course they were promoted to overseeing the housing and banking markets, a sure recipe for disaster. Makes one think maybe someone wants to destroy the American economy behind the scenes.
This is what happens when you let criminals write the law.
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