Document ID: SEC-2011-0810-0001
Agency: sec
Document Type: Proposed Rule
Title: Credit Risk Retention
Posted Date: 2011-06-10T04:00Z

[Federal Register Volume 76, Number 112 (Friday, June 10, 2011)]
[Proposed Rules]
[Pages 34010-34011]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14444]

[[Page 34010]]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 43

[Docket No. OCC-2011-0002]
RIN 1557-AD40

FEDERAL RESERVE SYSTEM

12 CFR Part 244

[Docket No. 2011-1411]
RIN 7100-AD 70

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 373

RIN 3064-AD74

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 246

[Release No. 34-64603; File No. S7-14-11]
RIN 3235-AK96

FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1234

RIN 2590-AA43

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 267

RIN 2501-AD53

Credit Risk Retention

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); U.S. Securities and Exchange 
Commission (Commission); Federal Housing Finance Agency (FHFA); and 
Department of Housing and Urban Development (HUD).

ACTION: Proposed rule; extension of comment period.

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SUMMARY: On April 29, 2011, the OCC, Board, FDIC, Commission, FHFA and 
HUD (collectively, the ``Agencies'') published in the Federal Register 
a joint notice of proposed rulemaking for public comment to implement 
the credit risk retention requirements of section 15G of the Securities 
Exchange Act of 1934, as added by the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (``Credit Risk NPR'' or ``proposed rule'').
    Due to the complexity of the rulemaking and to allow parties more 
time to consider the impact of the Credit Risk NPR on affected markets, 
the Agencies have determined that an extension of the comment period 
until August 1, 2011, is appropriate. This action will allow interested 
persons additional time to analyze the proposed rules and prepare their 
comments.

DATES: The comment period for the proposed rule published April 29, 
2011, at 76 FR 24090, is extended. Comments on the Credit Risk NPR must 
be received on or before August 1, 2011.

ADDRESSES: You may submit comments by any of the methods identified in 
the Credit Risk NPR. Please submit your comments using only one method.

FOR FURTHER INFORMATION CONTACT: 
OCC: Chris Downey, Risk Specialist, Financial Markets Group, (202) 874-
4660; Kevin Russell, Director, Retail Credit Risk, (202) 874-5170; 
Darrin Benhart, Director, Commercial Credit Risk, (202) 874-5670; or 
Jamey Basham, Assistant Director, or Carl Kaminski, Senior Attorney, 
Legislative and Regulatory Activities Division, (202) 874-5090, Office 
of the Comptroller of the Currency, 250 E Street, SW., Washington, DC 
20219.
Board: Benjamin W. McDonough, Counsel, (202) 452-2036; April C. Snyder, 
Counsel, (202) 452-3099; Sebastian R. Astrada, Attorney, (202) 452-
3594; or Flora H. Ahn, Attorney, (202) 452-2317, Legal Division; Thomas 
R. Boemio, Manager, (202) 452-2982; Donald N. Gabbai, Senior 
Supervisory Financial Analyst, (202) 452-3358; or Sviatlana A. Phelan, 
Financial Analyst, (202) 912-4306, Division of Banking Supervision and 
Regulation; Andreas Lehnert, Deputy Director, Office of Financial 
Stability Policy and Research, (202) 452-3325; or Brent Lattin, 
Counsel, (202) 452-3367, Division of Consumer and Community Affairs, 
Board of Governors of the Federal Reserve System, 20th and C Streets, 
NW., Washington, DC 20551.
FDIC: Beverlea S. Gardner, Special Assistant to the Chairman, (202) 
898-3640; Mark L. Handzlik, Counsel, (202) 898-3990; Phillip E. Sloan, 
Counsel, (703) 562-6137; Petrina R. Dawson, Counsel, (703) 562-2688; or 
Jeannette Roach, Counsel, (202) 898-3785, Federal Deposit Insurance 
Corporation, 550 17th Street, NW., Washington, DC 20429.
Commission: Jay Knight, Special Counsel, or Katherine Hsu, Chief, 
Office of Structured Finance, Division of Corporation Finance, at (202) 
551-3753, U.S. Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-3628.
FHFA: Patrick J. Lawler, Associate Director and Chief Economist, 
Patrick.Lawler@fhfa.gov, (202) 414-3746; Austin Kelly, Associate 
Director for Housing Finance Research, Austin.Kelly@fhfa.gov, (202) 
343-1336; Phillip Millman, Principal Capital Markets Specialist, 
Phillip.Millman@fhfa.gov, (202) 343-1507; or Thomas E. Joseph, Senior 
Attorney Advisor, Thomas.Joseph@fhfa.gov, (202) 414-3095; Federal 
Housing Finance Agency, Third Floor, 1700 G Street, NW., Washington, DC 
20552. The telephone number for the Telecommunications Device for the 
Hearing Impaired is (800) 877-8339.
HUD: Robert C. Ryan, Acting Assistant Secretary for Housing--Federal 
Housing Commissioner, Office of Housing, Department of Housing and 
Urban Development, 451 7th Street, SW., Room 9100, Washington, DC 
20410; telephone number (202) 402-5216 (this is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number through TTY by calling the toll-free Federal Information Relay 
Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: On April 29, 2011, the Credit Risk NPR was 
published in the Federal Register.\1\ The Credit Risk NPR proposes to 
implement the credit risk retention requirements of section 15G of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-11), as added by section 
941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act''). Section 15G generally requires the securitizer of 
asset-backed securities (``ABS'') to retain an economic interest of no 
less than five percent in the credit risk of the assets collateralizing 
the ABS. Section 15G includes a variety of exemptions from this 
requirement, including an exemption for asset-backed securities that 
are collateralized exclusively by ``qualified residential mortgages,'' 
as such term is defined by the Agencies by rule.
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    \1\ See 76 FR 24090.
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    The Credit Risk NPR would specify credit risk retention 
requirements for securitizers of ABS. In designing the proposed rules, 
the Agencies sought to ensure that the amount of credit risk retained 
would be meaningful--consistent with the purposes of section 15G--while 
reducing the potential for the proposed rules to negatively affect the 
availability and cost of credit to

[[Page 34011]]

consumers and businesses. In recognition of the complexities of the 
rulemaking and the variety of considerations involved in its impact and 
implementation, the Agencies requested that commenters respond to 
numerous questions. The Credit Risk NPR stated that the public comment 
period would close on June 10, 2011.\2\
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    \2\ See id.
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    The Agencies have received requests from the public for an 
extension of the comment period to allow for sufficient time for data 
gathering and impact analyses related to the provisions of the proposed 
rule.\3\ The Agencies believe that it is important for interested 
persons to have additional time to fully review the provisions of the 
proposed rule and the questions posed by the Agencies, and to conduct 
appropriate data collection and analysis on the potential impact of the 
Credit Risk NPR prior to submitting comment. Therefore, the Agencies 
are extending the comment period for the Credit Risk NPR from June 10, 
2011 to August 1, 2011.
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    \3\ See, e.g., comment letters to the Agencies from American 
Bankers Association et al. (May 13, 2011) and The Loan Syndications 
and Trading Association (May 26, 2011); and press release from 
Realogy Corporation (May 10, 2011).

    Dated: June 3, 2011.
John Walsh,
Acting Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary under delegated authority, June 
6, 2011.
Jennifer J. Johnson,
Secretary of the Board.
    Dated at Washington, DC, this 3rd day of June 2011.
    By order of the Board of Directors. Federal Deposit Insurance 
Corporation.
Valerie J. Best,
Assistant Executive Secretary.
    By the Securities and Exchange Commission.

    Dated: June 6, 2011.
Elizabeth M. Murphy,
Secretary.
    Dated: June 2, 2011.
Edward J. Demarco,
Acting Director, Federal Housing Finance Agency.
    Jointly prescribed with the Agencies.
    By the Department of Housing and Urban Development.

    Dated: June 6, 2011.
Robert C. Ryan,
Acting Assistant Secretary Housing--Federal Housing Commissioner.
[FR Doc. 2011-14444 Filed 6-9-11; 8:45 am]
BILLING CODE 6714-01-P; BILLING CODE 4810-33-P; BILLING CODE 6210-01-P; 
BILLING CODE 8011-01-P; BILLING CODE 8070-01-P; BILLING CODE 4210-67-P