An ambitious, risky plan to let mortgage originators shift more of their risk to Wall Street has suffered a potentially fatal setback.

The Public Securities Association has said the proposal - to securitize a larger proportion of interest payments on home loans - would not meet bond-industry criteria.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.