U.S. financial regulators looking to ease mortgage norms -WSJ

July 24 Tue Jul 23, 2013 9:38pm EDT

July 24 (Reuters) - U.S. financial regulators are planning to relax a key provision that requires banks to withhold a portion of the mortgage securities they sell to investors, the Wall Street Journal reported, citing people familiar with the matter.

The Federal Reserve and Federal Deposit Insurance Corp are among regulators considering loosening rules governing mortgage-backed securities, but nothing has been finalized yet, the Journal said.

Changing such rules would mean unwinding the regulations that came into effect under the 2010 Dodd-Frank law, which mandates that banks should retain 5 percent of all mortgage-backed securities issued without government backing.

The change would represent a victory for banks and consumer advocates that opposed the new rules and argued that they would restrict lending and do little to make the financial system safer, the newspaper said.

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After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.