One of the key co-authors of the Dodd-Frank Act said Monday that he was "troubled" by regulators' decision to essentially strip out a risk-retention requirement for lenders that securitize mortgages to sell in the secondary market.

Barney Frank, the former House Financial Services Committee chairman, told a regulatory conference that he was disappointed the banking agencies chose to dial down a measure that would have forced lenders to hold 5% of the risk of mortgages they sell into the secondary market.

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