Regulators deny JPMorgan Chase, Redwood Trust securitzation innovation

Last year saw a bit of innovation in the private-label securitization market, as JPMorgan Chase launched a new securitization option where some of the risk on non-agency mortgages is transferred to the private market through a risk-sharing deal. But, the Office of the Comptroller of the Currency rejected the innovative securitization structure. What does it mean going forward?