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Proposed New Rule Under Dodd-Frank Act

BIZCATALYST 360°
BY BIZCATALYST 360°

Key exemptions in the Dodd-Frank Act allowed lenders to securitize risky mortgages In 2011, in an effort designed to prevent a repeat of the often times shoddy underwriting practices that were pervasive during the years leading up to the current mortgage crisis, the Federal Deposit Insurance Corporation and the Federal Reserve proposed a rule under the Dodd-Frank Act requiring lenders to retain some risk related to the loans they securitize.

via Proposed new rule under Dodd-Frank Act | Mortgage Crisis Watch.

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