Overview of the Proposed Credit Risk Retention Rules for Securitizations
8 April 2011
Mayer Brown White Paper
The SEC and various banking and housing regulators have issued amuch anticipated set of proposed rules requiring securitization sponsors to retain a portion of the credit risk in the assets that they securitize. In this memorandum,we summarize the proposed rules, discuss a number of provisions that are problematic or unclear and offer a preliminary analysis of the impact of these rules on the securitizationmarket.