“Did any one catch this bit in the latest (and last?) draft of theUS financial reform bill?

From page 189 of Title IX :

‘‘(B) require a securitizer to retain— 16 ‘‘(i) not less than 5 percent of the 17 credit risk for any asset— 18 ‘‘(I) that is not a qualified residential mortgage that is transferred, 20 sold, or conveyed through the issuance 21 of an asset-backed security by the 22 securitizer;

Familiarise yourself with that term — for some say it could dictate the future of mortgage securitisation…”

FT Alphaville » The plain vanilla mortgage LIVES! It’s just called ‘qualified’.