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Board of Governors of the Federal Reserve System
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Federal Reserve Board of Governors

Joint Press Release

Board of Governors of the Federal Reserve System
Department of Housing and Urban Development
Federal Deposit Insurance Corporation
Federal Housing Finance Agency
Office of the Comptroller of the Currency
Securities and Exchange Commission
For immediate release
March 28, 2011

Agencies Announce Consideration of Risk Retention Notice of Proposed Rulemaking

The staffs of the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development (together, the agencies) announced that the agencies this week are considering for approval a notice of proposed rulemaking that addresses section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. All of the agencies participating in this joint rulemaking process are expected to consider the rule this week and a detailed announcement will be made when this process is complete. If approved, the agencies will publish in the Federal Register a notice of proposed rulemaking for public comment.

Section 941 requires the agencies to prescribe rules to require that a securitizer retain an economic interest in a material portion of the credit risk for any asset that it transfers, sells, or conveys to a third party. The chairperson of the Financial Stability Oversight Council is tasked with coordinating this rulemaking effort.

Media Contacts:
Federal Reserve Board Barbara Hagenbaugh (202) 452-2955
FDIC David Barr (202) 898-6992
FHFA Stefanie Johnson (202) 414-6376
HUD Melanie N. Roussell (202) 708-0980
OCC Kevin Mukri (202) 874-5770
SEC Office of Public Affairs (202) 551-4120
 
Last update: March 28, 2011