Section 244.1 - Authority, purpose, and scope(a)Authority -(1)In general. This part (Regulation RR) is issued by the Board of Governors of the Federal Reserve System under section 15G of the Securities Exchange Act of 1934, as amended (Exchange Act) (15 U.S.C. 78o-11 ), as well as under the Federal Reserve Act, as amended (12 U.S.C. 221 et seq.); section 8 of the Federal Deposit Insurance Act (FDI Act), as amended (12 U.S.C. 1818 ) ; the Bank Holding Company Act of 1956, as amended (BHC Act) (12 U.S.C. 1841 et seq.); the Home Owners' Loan Act of 1933 (HOLA) (12 U.S.C. 1461 et seq.); section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) (12 U.S.C. 5365 ) ; and the International Banking Act of 1978, as amended (12 U.S.C. 3101 et seq.).(2) Nothing in this part shall be read to limit the authority of the Board to take action under provisions of law other than 15 U.S.C. 78o-11 , including action to address unsafe or unsound practices or conditions, or violations of law or regulation, under section 8 of the FDI Act.(b)Purpose. This part requires any securitizer to retain an economic interest in a portion of the credit risk for any asset that the securitizer, through the issuance of an asset-backed security, transfers, sells, or conveys to a third party in a transaction within the scope of section 15G of the Exchange Act. This part specifies the permissible types, forms, and amounts of credit risk retention, and establishes certain exemptions for securitizations collateralized by assets that meet specified underwriting standards or that otherwise qualify for an exemption.(c)Scope.(1) This part applies to any securitizer that is:(i) A state member bank (as defined in 12 CFR 208.2(g) ) ; or(ii) Any subsidiary of a state member bank.(2) Section 15G of the Exchange Act and the rules issued thereunder apply to any securitizer that is:(i) A bank holding company (as defined in 12 U.S.C. 1842 ) ;(ii) A foreign banking organization (as defined in 12 CFR 211.21(o) ) ;(iii) An Edge or agreement corporation (as defined in 12 CFR 211.1(c)(2) and (3) ) ;(iv) A nonbank financial company that the Financial Stability Oversight Council has determined under section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) (12 U.S.C. 5323 ) shall be supervised by the Board and for which such determination is still in effect; or(v) A savings and loan holding company (as defined in 12 U.S.C. 1467a ) ; and(vi) Any subsidiary of the foregoing.(3) Compliance with this part is required:(i) With respect to any securitization transaction collateralized by residential mortgages on December 24, 2015; and(ii) With respect to any other securitization transaction on December 24, 2016.79 FR 77764, Dec. 24, 2014