As if it wasn't already a neutered piece of legislation. Enough is never really enough for the bankers. Sure the American public saved them and is now suffering because of their shameful behavior. But hey, that was then and today is a new day. CNBC:
But now financial companies are trying to get around the law by manipulating a carve-out for "qualified residential mortgages." Lawmakers punted on the definition of a qualified residential mortgage when the law was written, charging regulators with deciding what mortgages are safe enough to avoid the risk-retention rules. Obviously, many financial firms would like to see an expansive definition that would reduce their need to retain risk.
On Tuesday, the board of the Federal Deposit Insurance Corporation will hold a open meeting to discuss the rule and the carve-out.
The very first companies to begin agitating for an exemption from risk-retention were Fannie Mae and Freddie Mac. Lobbyists argued that mortgages that mortgages backed by either Fannie or Freddie should automatically be included as qualified mortgages.
