Over the past two years the government has been working on a proposed rule to change credit risk retention requirements. A part of that overhaul includes sweeping changes to automotive loans, changes that are leaving many commenters asking: do regulators have any idea how people actually buy cars today?
On April 29, 2011 the Comptroller of the Currency (OCC) posted a proposed rule to implement Section 941 (Regulation of Credit Risk Retention) of the Dodd-Frank Wall Street Reform Act.
The goal of this rule is to establish new risk standards to prevent asset backed securities from being built on poorly written loans. In other words – prevent the financial calamity that broke America.
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