Six federal agencies approved a 4-week extension of the comment period for the proposed rule under the Dodd-Frank Act that requires asset-backed securities issuers to maintain at least 5 percent of the credit risk of the underlying assets.
The comment period was extended “to allow interested persons more time to analyze the issues and prepare their comments,” the agencies said in a joint statement. Under the proposed rule, issuers would also not be allowed to transfer or hedge the credit risk.
