Page:United States Statutes at Large Volume 124.djvu/1920

 124 STAT. 1894 PUBLIC LAW 111–203—JULY 21, 2010 origination of the type of loan or asset to be sold to the securitizer; and ‘‘(C) the potential impact of the risk retention obliga- tions on the access of consumers and businesses to credit on reasonable terms, which may not include the transfer of credit risk to a third party. ‘‘(e) EXEMPTIONS, EXCEPTIONS, AND ADJUSTMENTS.— ‘‘(1) IN GENERAL.—The Federal banking agencies and the Commission may jointly adopt or issue exemptions, exceptions, or adjustments to the rules issued under this section, including exemptions, exceptions, or adjustments for classes of institu- tions or assets relating to the risk retention requirement and the prohibition on hedging under subsection (c)(1). ‘‘(2) APPLICABLE STANDARDS.—Any exemption, exception, or adjustment adopted or issued by the Federal banking agen- cies and the Commission under this paragraph shall— ‘‘(A) help ensure high quality underwriting standards for the securitizers and originators of assets that are securitized or available for securitization; and ‘‘(B) encourage appropriate risk management practices by the securitizers and originators of assets, improve the access of consumers and businesses to credit on reasonable terms, or otherwise be in the public interest and for the protection of investors. ‘‘(3) CERTAIN INSTITUTIONS AND PROGRAMS EXEMPT.— ‘‘(A) FARM CREDIT SYSTEM INSTITUTIONS.—Notwith- standing any other provision of this section, the require- ments of this section shall not apply to any loan or other financial asset made, insured, guaranteed, or purchased by any institution that is subject to the supervision of the Farm Credit Administration, including the Federal Agricultural Mortgage Corporation. ‘‘(B) OTHER FEDERAL PROGRAMS.—This section shall not apply to any residential, multifamily, or health care facility mortgage loan asset, or securitization based directly or indirectly on such an asset, which is insured or guaran- teed by the United States or an agency of the United States. For purposes of this subsection, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal home loan banks shall not be considered an agency of the United States. ‘‘(4) EXEMPTION FOR QUALIFIED RESIDENTIAL MORTGAGES.— ‘‘(A) IN GENERAL.—The Federal banking agencies, the Commission, the Secretary of Housing and Urban Develop- ment, and the Director of the Federal Housing Finance Agency shall jointly issue regulations to exempt qualified residential mortgages from the risk retention requirements of this subsection. ‘‘(B) QUALIFIED RESIDENTIAL MORTGAGE.—The Federal banking agencies, the Commission, the Secretary of Housing and Urban Development, and the Director of the Federal Housing Finance Agency shall jointly define the term ‘qualified residential mortgage’ for purposes of this subsection, taking into consideration underwriting and product features that historical loan performance data indicate result in a lower risk of default, such as— Definition. Regulations.