Page 524 — Public Law 111-203 including PTFA amendments

124 STAT. 1898 PUBLIC LAW 111–203—JULY 21, 2010

‘‘(5) transactions’’.
(b) CONFORMING AMENDMENT.—Section 3(a)(4)(B)(vii)(I) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)(B)(vii)(I)) is
amended by striking ‘‘4(6)’’ and inserting ‘‘4(5)’’.

SEC. 945. DUE DILIGENCE ANALYSIS AND DISCLOSURE IN ASSET-
BACKED SECURITIES ISSUES.
Section 7 of the Securities Act of 1933 (15 U.S.C. 77g), as
amended by this subtitle, is amended by adding at the end the
following:
Deadline. ‘‘(d) REGISTRATION STATEMENT FOR ASSET-BACKED SECURI-
Regulations. TIES.—Not later than 180 days after the date of enactment of
this subsection, the Commission shall issue rules relating to the
registration statement required to be filed by any issuer of an
asset-backed security (as that term is defined in section 3(a)(77)
of the Securities Exchange Act of 1934) that require any issuer
of an asset-backed security—
‘‘(1) to perform a review of the assets underlying the asset-
backed security; and
‘‘(2) to disclose the nature of the review under paragraph
(1).’’.

SEC. 946. STUDY ON THE MACROECONOMIC EFFECTS OF RISK RETEN-
TION REQUIREMENTS.
(a) STUDY REQUIRED.—The Chairman of the Financial Services
Oversight Council shall carry out a study on the macroeconomic
effects of the risk retention requirements under this subtitle, and
the amendments made by this subtitle, with emphasis placed on
potential beneficial effects with respect to stabilizing the real estate
market. Such study shall include—
(1) an analysis of the effects of risk retention on real
estate asset price bubbles, including a retrospective estimate
of what fraction of real estate losses may have been averted
had such requirements been in force in recent years;
(2) an analysis of the feasibility of minimizing real estate
price bubbles by proactively adjusting the percentage of risk
retention that must be borne by creditors and securitizers of
real estate debt, as a function of regional or national market
conditions;
(3) a comparable analysis for proactively adjusting mort-
gage origination requirements;
(4) an assessment of whether such proactive adjustments
should be made by an independent regulator, or in a formulaic
and transparent manner;
(5) an assessment of whether such adjustments should
take place independently or in concert with monetary policy;
and
(6) recommendations for implementation and enabling
legislation.
(b) REPORT.—Not later than the end of the 180-day period
beginning on the date of the enactment of this title, the Chairman
of the Financial Services Oversight Council shall issue a report

LAWS to the Congress containing any findings and determinations made in carrying out the study required under subsection (a). PUBLIC with on anorris VerDate Nov 24 2008 03:41 Aug 28, 2010 Jkt 089139 PO 00203 Frm 00524 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203