Risk-Retention Rule Ignores Costs to Market, SEC Dissenters Say
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New U.S. rules requiring lenders keep a stake in mortgages they package for sale were assailed by Republicans on the Securities and Exchange Commission who say regulators ignored the cost and impact of the measures.
“Banking and housing regulators have decided to throw up their hands and simply decide that getting it done is more important than getting it right,” Piwowar said in prepared remarks before the SEC’s 3-2 vote to back the joint-agency rule, which was approved by the Federal Deposit Insurance Corp and other agencies yesterday.