U.S. bank regulators next week will consider a proposal designed to discourage risky lending by forcing banks to keep part of their loans on their books, even after selling them off to be bundled into securities. The Federal Deposit Insurance Corp said on Wednesday that it will meet on Aug. 28 to discuss the credit risk retention rule required by the 2010 Dodd-Frank Wall Street oversight law. The "skin-in-the-game" rules call for lenders to keep 5 percent of securitized mortgages on their books, with the exception of the most basic loans. The requirement was first proposed in 2011, but has not yet been made final. Many observers expect regulators to issue a new proposal that would exempt more loans, Reuters reported in July, citing sources familiar with the work of regulators. The initial proposal said that for a loan to be exempt from the "skin-in-the-game" requirement, it would have to include a 20 percent down payment. Lenders said that was too harsh and could restrict credit
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