WASHINGTON Feb 14 A top Federal Reserve
official said on Thursday that regulators should consider making
a new mortgage rule that would provide an exemption to
risk-retention requirements compatible with an existing rule.
At issue is making a definition of a qualified residential
mortgage compatible with the definition for qualified mortgages
that was made earlier this year by the Consumer Financial
Federal Reserve Governor Daniel Tarullo told lawmakers it
was "definitely the case" that regulators should consider making
the two rules congruent.
The Consumer Financial Protection Bureau, in defining
qualified mortgages, said they would be considered to meet
requirements that lenders verify borrowers can repay loans.
A group of regulators is now working on a definition of
qualified residential mortgages, which would be exempt from
"skin in the game" rules requiring mortgage originators to keep
a portion of securitized loans on their books.