Risk-retention rule could have unwanted impact:

06/25/2010 | Wall Street Journal, The

A proposal in Congress to exempt government lenders such as the Federal Housing Administration from new risk-retention rules could lead to even more risky mortgages being pushed onto the books of the FHA, Nick Timiraos observes. The financial-reform bill currently calls for lenders to hold 5% of the value of mortgages as an incentive to better screen borrowers, he writes.

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