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June 7 (Bloomberg) -- U.S. regulators extended the comment period for Dodd-Frank Act risk-retention rules that could make it more difficult or expensive for borrowers to get mortgages.
The Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corp., Securities and Exchange Commission, the Federal Housing Finance Agency and the Department of Housing and Urban Development announced the extension in a statement today. The comment period, which was to end June 10, was extended to Aug. 1.
Dodd-Frank, the regulatory overhaul enacted last year, requires lenders and bond issuers to keep a 5 percent stake in loans they bundle for sale to investors. Forcing the industry to share potential losses was meant to rein in risky lending and avoid mistakes that led to a flood of subprime mortgages, which helped trigger the 2008 financial collapse.
The law requires regulators to exempt home loans that are deemed safe, including those with fixed interest rates and long repayment terms.
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