Concerned that tougher mortgage rules could hamper the housing recovery, regulators are preparing to relax a key plank of the rules proposed after the financial crisis.
The watchdogs, which include the Federal Reserve and Federal Deposit Insurance Corp., want to loosen a proposed requirement that banks retain a portion of the mortgage securities they sell to investors, according to people familiar with the situation.
The plan, which hasn't been finalized and could still change, would be a major U-turn for the regulators charged with fleshing out the Dood-Frank financial-overhaul law passed three years ago.
Source: WSJ
