Commercial MBS Risk Retention
MBA continues to monitor the impacts of risk retention on CMBS markets.
Overview: Section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act required the following federal agencies FDIC, Federal Reserve, OCC, SEC, HUD and FHFA to jointly prescribe rules for the retention of credit risk for asset-backed securities, including commercial mortgage-backed securities (CMBS). The final rule's risk retention requirements addressing CMBS took effect on December 24, 2016. MBA believes that additional changes and clarifications are necessary to the rule.