Investments

Bank regulators debate lender risk rules

How much skin-in-the-game should a bank have?

Reuters says banking regulators are still trying to determine how much risk a bank should carry after loans are sold off onto the secondary mortgage market. The publication elaborates on the ongoing debate:

The Federal Deposit Insurance Corp said on Wednesday that it will meet on August 28 to discuss the credit risk retention rule required by the 2010 Dodd-Frank Wall Street oversight law.

The "skin-in-the-game" rules call for lenders to keep 5 percent of securitized mortgages on their books, with the exception of the most basic loans. The requirement was first proposed in 2011, but has not yet been made final.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please