(a) Authority.
(1) In general. This part (Regulation RR) is issued by the Board of Governors of
the Federal Reserve System under section 15G of the Securities Exchange
Act of 1934, as amended (Exchange Act) (15 U.S.C. 78o-11), as well
as under the Federal Reserve Act, as amended (12 U.S.C. 221 et
seq.); section 8 of the Federal Deposit Insurance Act (FDI Act),
as amended (12 U.S.C. 1818); the Bank Holding Company Act of 1956,
as amended (BHC Act) (12 U.S.C. 1841 et seq.); the Home Owners’
Loan Act of 1933 (HOLA) (12 U.S.C. 1461 et seq.); section 165
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank
Act) (12 U.S.C. 5365); and the International Banking Act of 1978,
as amended (12 U.S.C. 3101 et seq.).
(2) Nothing in this part shall be read
to limit the authority of the Board to take action under provisions
of law other than 15 U.S.C. 78o-11, including action to address unsafe
or unsound practices or conditions, or violations of law or regulation,
under section 8 of the FDI Act.
(b) Purpose. This part requires 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 in a transaction within
the scope of section 15G of the Exchange Act. This part specifies
the permissible types, forms, and amounts of credit risk retention,
and establishes certain exemptions for securitizations collateralized
by assets that meet specified underwriting standards or that otherwise
qualify for an exemption.
(c) Scope.
(1) This part applies to any securitizer
that is:
(i) A state member bank (as defined
in 12 CFR 208.2(g)); or
(ii) Any subsidiary of a state member
bank.
(2)
Section 15G of the Exchange Act and the rules issued thereunder apply
to any securitizer that is:
(i) A bank holding company (as defined
in 12 U.S.C. 1842);
(ii) A foreign banking organization (as defined in 12 CFR 211.21(o));
(iii) An Edge or agreement
corporation (as defined in 12 CFR 211.1(c)(2) and (3));
(iv) A nonbank financial
company that the Financial Stability Oversight Council has determined
under section 113 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the Dodd-Frank Act) (12 U.S.C. 5323) shall be supervised
by the Board and for which such determination is still in effect;
or
(v) A savings
and loan holding company (as defined in 12 U.S.C. 1467a); and
(vi) Any subsidiary of
the foregoing.
(3) Compliance with this part is required:
(i) With respect to any securitization transaction collateralized
by residential mortgages on December 24, 2015; and
(ii) With respect to any other securitization
transaction on December 24, 2016.
