The investor-plaintiffs claim that Fannie and two of the company’s former executives made false and misleading statements about the mortgage giant’s internal controls and its exposure to subprime.
As part of the transaction, company founder and president Steven Horne will step down as president and chief executive officer, but will remain as a senior advisor.
Issuers of securities backed by assets other than residential mortgages were able to win some concessions from federal regulators in the final risk-retention rule that was approved this week. However, the standards for “qualified” loans that are exempt from risk-retention requirements are much more stringent than those for qualified-residential mortgages, even including downpayment requirements in some instances. The risk-retention requirements for non-mortgage ABS and commercial MBS take effect two years after the final rule is published in the Federal Register. Securities that include loans that don’t qualify for exemptions will be required to have risk-retention of at least 5.0 percent, though there are instances when the required retention can be lower. The final standards qualifying commercial loans, commercial real-estate loans and auto loans were...
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