6/12/2014

A new version of a proposed rule to beef up mortgage quality is expected to advance after the Securities and Exchange Commission dropped objections to looser terms, officials say. An initial version of the proposal, released in 2011, called for borrowers to put down 20% or for lenders to keep 5% of the securitized loan's risk on their books. The latest version scraps the down payment requirement and offers lenders an exemption on retaining risk. The SEC has won a concession calling for periodic reviews of the rule.

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