U.S. regulators finalized a securities risk retention rule on Tuesday designed to set the stage for the future of the secondary mortgage market.

The Federal Deposit Insurance Corp. is considering a final rule at its morning meeting that would require lenders to retain at least a 5% stake in loans they securitize unless they meet the definition of "qualified residential mortgages." The final rule would define QRM to match align with the Consumer Financial Protection Bureau's separate "qualified mortgage" rule, which governs underwriting standards.

Still, regulators left a window to review the definition of QRM in 2019, four years after it becomes effective next year. The timing of the review parallels the CFPB's own pending review of its QM regulation.

The final securitization rule is due to be approved today by the Federal Housing Finance Agency and the Office of the Comptroller of the Currency, with the Federal Reserve Board and Securities and Exchange Commission scheduled to vote on it Wednesday.

"Aligning the qualified residential mortgage standard with the existing qualified mortgage definition also means more clarity for lenders and encourages safe and sound lending to credit worthy borrowers," FHFA Director Mel Watt said in a statement.

Comptroller Thomas Curry added: "I believe this final rule will provide more certainty in the securitization markets, which will have a positive effect on our economy."

Regulators did make two exceptions to the QRM rule, one for community lenders and one for three- to four-unit owner-occupied mortgage loans and adjusted some of the risk structures allowed.

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