Page:United States Statutes at Large Volume 124.djvu/1917

 124 STAT. 1891 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(vi) a security that the Commission, by rule, deter- mines to be an asset-backed security for purposes of this section; and ‘‘(B) does not include a security issued by a finance subsidiary held by the parent company or a company con- trolled by the parent company, if none of the securities issued by the finance subsidiary are held by an entity that is not controlled by the parent company.’’. (b) CREDIT RISK RETENTION.—The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 15F, as added by this Act, the following: ‘‘SEC. 15G. CREDIT RISK RETENTION. ‘‘(a) DEFINITIONS.—In this section— ‘‘(1) the term ‘Federal banking agencies’ means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insur- ance Corporation; ‘‘(2) the term ‘insured depository institution’ has the same meaning as in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)); ‘‘(3) the term ‘securitizer’ means— ‘‘(A) an issuer of an asset-backed security; or ‘‘(B) a person who organizes and initiates an asset- backed securities transaction by selling or transferring assets, either directly or indirectly, including through an affiliate, to the issuer; and ‘‘(4) the term ‘originator’ means a person who— ‘‘(A) through the extension of credit or otherwise, cre- ates a financial asset that collateralizes an asset-backed security; and ‘‘(B) sells an asset directly or indirectly to a securitizer. ‘‘(b) REGULATIONS REQUIRED.— ‘‘(1) IN GENERAL.—Not later than 270 days after the date of enactment of this section, the Federal banking agencies and the Commission shall jointly prescribe regulations to require 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. ‘‘(2) RESIDENTIAL MORTGAGES.—Not later than 270 days after the date of the enactment of this section, the Federal banking agencies, the Commission, the Secretary of Housing and Urban Development, and the Federal Housing Finance Agency, shall jointly prescribe regulations to require any securitizer to retain an economic interest in a portion of the credit risk for any residential mortgage asset that the securitizer, through the issuance of an asset-backed security, transfers, sells, or conveys to a third party. ‘‘(c) STANDARDS FOR REGULATIONS.— ‘‘(1) STANDARDS.—The regulations prescribed under sub- section (b) shall— ‘‘(A) prohibit a securitizer from directly or indirectly hedging or otherwise transferring the credit risk that the securitizer is required to retain with respect to an asset; ‘‘(B) require a securitizer to retain— Deadline. 15 USC 78o–11.