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PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1891

‘‘(vi) a security that the Commission, by rule, deter-
mines to be an asset-backed security for purposes of
this section; and
‘‘(B) does not include a security issued by a finance
subsidiary held by the parent company or a company con-
trolled by the parent company, if none of the securities
issued by the finance subsidiary are held by an entity
that is not controlled by the parent company.’’.
(b) CREDIT RISK RETENTION.—The Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) is amended by inserting after section
15F, as added by this Act, the following:

‘‘SEC. 15G. CREDIT RISK RETENTION. 15 USC 78o–11.
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) the term ‘Federal banking agencies’ means the Office
of the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, and the Federal Deposit Insur-
ance Corporation;
‘‘(2) the term ‘insured depository institution’ has the same
meaning as in section 3(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(c));
‘‘(3) the term ‘securitizer’ means—
‘‘(A) an issuer of an asset-backed security; or
‘‘(B) a person who organizes and initiates an asset-
backed securities transaction by selling or transferring
assets, either directly or indirectly, including through an
affiliate, to the issuer; and
‘‘(4) the term ‘originator’ means a person who—
‘‘(A) through the extension of credit or otherwise, cre-
ates a financial asset that collateralizes an asset-backed
security; and
‘‘(B) sells an asset directly or indirectly to a securitizer.
‘‘(b) REGULATIONS REQUIRED.— Deadline.
‘‘(1) IN GENERAL.—Not later than 270 days after the date
of enactment of this section, the Federal banking agencies
and the Commission shall jointly prescribe regulations to
require any securitizer to retain an economic interest in a
portion of the credit risk for any asset that the securitizer,
through the issuance of an asset-backed security, transfers,
sells, or conveys to a third party.
‘‘(2) RESIDENTIAL MORTGAGES.—Not later than 270 days
after the date of the enactment of this section, the Federal
banking agencies, the Commission, the Secretary of Housing
and Urban Development, and the Federal Housing Finance
Agency, shall jointly prescribe regulations to require any
securitizer to retain an economic interest in a portion of the
credit risk for any residential mortgage asset that the
securitizer, through the issuance of an asset-backed security,
transfers, sells, or conveys to a third party.
‘‘(c) STANDARDS FOR REGULATIONS.—
‘‘(1) STANDARDS.—The regulations prescribed under sub-
section (b) shall—
‘‘(A) prohibit a securitizer from directly or indirectly

LAWS hedging or otherwise transferring the credit risk that the securitizer is required to retain with respect to an asset; ‘‘(B) require a securitizer to retain—PUBLIC with on anorris VerDate Nov 24 2008 03:41 Aug 28, 2010 Jkt 089139 PO 00203 Frm 00517 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203