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<h1>Securitization Rules Require Originators to Keep Skin in the Game with Mandatory 5-10% Risk Retention Across Transaction Lifecycle</h1> The regulation mandates minimum retention requirements for securitized debt instruments by originators. For standard securitizations, originators must retain 10% of the book value, with reduced 5% retention for shorter-term transactions or residential mortgage-backed securities. Originators cannot hedge, sell, or transfer the retained risk, and must maintain the retained interest through first loss facility, equity tranche, or other investor tranches. The retention percentage must be maintained throughout the securitization's lifecycle, with exceptions for repayments or loss absorption.