... federal regulators are working on a definition for "qualified residential mortgage" that will exempt high credit quality loans from risk retention rules. (The risk retention rule, when finalized, will require securitizers of non-QRM loans to retain 5% of the credit risk.)

Evidently the government has learned nothing from the failure of credit ratings to guarantee loan performance in the mortgage crash. Retaining a mere 5% of total credit risk in `A' loans is ridiculously low. Obviously the government still wants to run its housing institutions highly-leveraged.

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