On August 28, 2013, the SEC, FDIC, Federal Reserve, OCC, FHA and HUD (the Joint Regulators) issued a second Notice of Proposed Rulemaking (the Re-proposed Rule) in connection with the requirement under Section 941 of Dodd-Frank that they jointly implement rules to require 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 (ABS), transfers to a third party.
The Joint Regulators prepared the Re-proposed Rule in response to comments received regarding the risk retention regulation that the Joint Regulators initially proposed on April 29, 2011 (the Original Proposed Rule). Comments on the Re-proposed Rule are due on October 30, 2013.