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15 U.S. Code § 78o-11. Credit risk retention
(a) DefinitionsIn 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 Insurance Corporation;
(2)
the term “insured depository institution” has the same meaning as in section 1813(c) of title 12;
(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, creates a financial asset that collateralizes an asset-backed security; and
(B)
sells an asset directly or indirectly to a securitizer.
(b) Regulations required
(1) In general
Not later than 270 days after July 21, 2010, 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 July 21, 2010, 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.