(a) In general. A sponsor
satisfies its risk retention requirement under this part if the sponsor
fully guarantees the timely payment of principal and interest on all
ABS interests issued by the issuing entity in the securitization transaction
and is:
(1) The Federal
National Mortgage Association or the Federal Home Loan Mortgage Corporation
operating under the conservatorship or receivership of the Federal
Housing Finance Agency pursuant to section 1367 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4617) with capital support from the United States; or
(2) Any limited-life regulated entity succeeding
to the charter of either the Federal National Mortgage Association
or the Federal Home Loan Mortgage Corporation pursuant to section
1367(i) of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (12 U.S.C. 4617(i)), provided that the entity is operating
with capital support from the United States.
(b) Certain provisions not applicable. The
provisions of section 244.12(b), (c), and (d) shall not apply to a
sponsor described in paragraph (a)(1) or (2) of this section, its
affiliates, or the issuing entity with respect to a securitization
transaction for which the sponsor has retained credit risk in accordance
with the requirements of this section.
(c) Disclosure. A sponsor relying on this section
shall provide to investors, in written form under the caption “Credit
Risk Retention” and, upon request, to the Federal Housing Finance
Agency and the Commission, a description of the manner in which it
has met the credit risk retention requirements of this part.
