There’s a debate brewing over what loans to exempt from a lender risk-retention requirement.
Article by Robert Freedman.
The article details the overview and bill for lenders to align their interests with those of borrowers and investors by retaining on their books at least 5 percent of the value of the mortgage loans they originate. With 5 percent of their own money at stake, the thinking went, lenders wouldn’t be quick to make loans that weren’t in the borrower’s interest.
Full details of the artice can be linked to: http://www.realtor.org/rmonews_and_commentary/articles/2011/1102_news_regulators