Source: https://ecfr.io/Title-12/pt12.4.244
Timestamp: 2019-08-18 19:52:06
Document Index: 491717051

Matched Legal Cases: ['art 244', 'art 244', 'art 244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244']

[12 CFR 244] Title 12 Part 244 : Code of Federal Regulations ';
Title 12 Part 244
Title 12 → Chapter II → Subchapter A → Part 244
§244.3 Base risk retention requirement.
§244.11 Allocation of risk retention to an originator.
§244.13 Exemption for qualified residential mortgages.
§244.14 Definitions applicable to qualifying commercial loans, qualifying commercial real estate loans, and qualifying automobile loans.
§244.21 Additional exemptions.
Authority: 12 U.S.C. 221 et seq., 1461 et seq., 1818, 1841 et seq., 3103 et seq., and 15 U.S.C. 78o-11.
(a) Base risk retention requirement. Except as otherwise provided in this part, the sponsor of a securitization transaction (or majority-owned affiliate of the sponsor) shall retain an economic interest in the credit risk of the securitized assets in accordance with any one of §§244.4 through 244.10. Credit risk in securitized assets required to be retained and held by any person for purposes of compliance with this part, whether a sponsor, an originator, an originator-seller, or a third-party purchaser, except as otherwise provided in this part, may be acquired and held by any of such person's majority-owned affiliates (other than an issuing entity).
(b) Multiple sponsors. If there is more than one sponsor of a securitization transaction, it shall be the responsibility of each sponsor to ensure that at least one of the sponsors of the securitization transaction (or at least one of their majority-owned or wholly-owned affiliates, as applicable) retains an economic interest in the credit risk of the securitized assets in accordance with any one of §244.4, §244.5, §244.8, §244.9, or §244.10.
(a) In general. A sponsor choosing to retain an eligible vertical interest or an eligible horizontal residual interest (including an eligible horizontal cash reserve account), or combination thereof under §244.4, with respect to a securitization transaction may offset the amount of its risk retention requirements under §244.4 by the amount of the eligible interests, respectively, acquired by an originator of one or more of the securitized assets if:
(i) The originator acquires the eligible interest from the sponsor and retains such interest in the same manner and proportion (as between horizontal and vertical interests) as the sponsor under §244.4, as such interest was held prior to the acquisition by the originator;
(ii) The ratio of the percentage of eligible interests acquired and retained by the originator to the percentage of eligible interests otherwise required to be retained by the sponsor pursuant to §244.4, does not exceed the ratio of:
(iii) The originator acquires and retains at least 20 percent of the aggregate risk retention amount otherwise required to be retained by the sponsor pursuant to §244.4; and
(2) Disclosures. In addition to the disclosures required pursuant to §244.4(c), the sponsor provides, or causes to be provided, to potential investors a reasonable period of time prior to the sale of the asset-backed securities as part of the securitization transaction and, upon request, to the Commission and its appropriate Federal banking agency, if any, in written form under the caption “Credit Risk Retention”, the name and form of organization of any originator that will acquire and retain (or has acquired and retained) an interest in the transaction pursuant to this section, including a description of the form and amount (expressed as a percentage and dollar amount (or corresponding amount in the foreign currency in which the ABS interests are issued, as applicable)) and nature (e.g., senior or subordinated) of the interest, as well as the method of payment for such interest under paragraph (a)(1)(iv) of this section.
(3) Hedging, transferring and pledging. The originator and each of its affiliates complies with the hedging and other restrictions in §244.12 with respect to the interests retained by the originator pursuant to this section as if it were the retaining sponsor and was required to retain the interest under subpart B of this part.
The following definitions apply for purposes of §§244.15 through 244.18:
(1) For acquisition funding, the lesser of the purchase price or the estimated market value of the real property based on an appraisal that meets the requirements set forth in §244.17(a)(2)(ii); or
(2) For refinancing, the estimated market value of the real property based on an appraisal that meets the requirements set forth in §244.17(a)(2)(ii).