Risk Retention is Dead!

Great! If there's anything we've learned from the mortgage mess, it's obviously that originators shouldn't retain any risk... -- ``FDIC chairman Sheila Bair, a big booster of RR, leaves next month and exits the debate permanently. By August or so legislation is introduced that amends the Dodd-Frank bill and gets rid of the whole concept of risk retention, qualified residential mortgage and its cousin qualified mortgage. In other words this colossal industry headache goes away and mortgage bankers are happy and hopefully consumers will be, too. As for the regulators, I'm sure they have plenty of other issues on their plates. From what we are told, of the six agencies involved in the RR/QRM debate, few of them see eye to eye...''