May 12, 2015 Alert - Senator Shelby Releases Financial Reform Bill

This afternoon, Senator Richard Shelby (R-AL), Chairman of the Senate Committee on Banking, Housing, & Urban Affairs (“Committee”) released The Financial Regulatory Improvement Act of 2015, a bill aimed at revising several portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Important to SFIG members, the bill addresses the following areas:

  1. Section 106: Safe Harbor for qualified mortgages held in portfolio (p. 20);
  2. Section 116: A study of the regulatory and capital requirements for mortgage servicing assets (p. 36);
  3. Section 704: Requires the Federal Housing Finance Agency ("FHFA") Director to establish a committee of market participants to advise the agency on the development of a market infrastructure, including a common securitization platform (“CSP”) (p. 152);
  4. Section 705: Requires the FHFA Director to report annually on development of a CSP, establish a Board of Directors—including industry participants—for the CSP, and transfer the CSP to a non-profit entity within five years of enactment of the bill (p. 152); and
  5. Section 706: Establishes minimum annual levels of risk sharing, which must be at least 150 percent of the previous year’s level, and at least fifty percent of which must be front-end risk sharing, for securities issued by Fannie Mae and Freddie Mac (p. 161).

A section-by-section summary of the bill can be found here. The full text of the bill can be found here.

Senator Shelby has planned a Committee mark-up of the bill on Thursday, May 21st, at 10:00 a.m. (ET).

SFIG will provide a detailed analysis of the aforementioned sections for its membership over the next week.

Please contact with any questions.

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