WASHINGTON — The FDIC proposed a rule last week that will require borrowers to make a down payment of at least 20% on their mortgages in order for the mortgages to be exempt from new "Skin in the Game" rules on securitizations.
The rules, part of the Dodd-Frank Financial Reform law, requires that lenders retain at least 5% of all loans to be sold on the secondary markets, and also offers a package of options tailored for other loans that would be eligible for exemptions under certain conditions. Five other federal regulators-but not NCUA-are expected to propose similar rules this week.
