Six agencies announced today in a joint release that they are considering proposing a rule this week to implement a section of the Dodd-Frank provision that requires issuers keep an economic interest in the securities they transfer.
Specifically, section 941 of Dodd-Frank mandates that “any securitizer to retain an economic interest in a portion of the credit risk for any asset that the securitizer, through the issuance of an asset-backed security,” as well as for “any residential mortgage asset that the securitizer, through the issuance of an asset-backed security, transfers, sells, or conveys to a third party.”
