Events Calendar
News and Information for and by the Securitization Industry
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ASF Issues Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans on December 6, 2007
On December 6, the ASF issued a “Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans.” The ASF framework has been endorsed by the U.S. Treasury Department, the Department of Housing and Urban Development and federal bank regulators.
Using individual borrower criteria such as credit scores and home equity, servicers can use the ASF framework to help streamline evaluation of their subprime ARM portfolios and fast-track borrowers more efficiently into appropriate solutions for their individual needs. Based on these metrics, borrowers can be segmented into four different groups: those eligible for refinancing; those eligible for a loan modification; those who need intensive analysis of their debts and income; and those who can afford the higher reset rate, and therefore need no assistance.
Please click here for the framework, here for the ASF press release, and here for public endorsements and statements of support for the framework. Please click here for a question and answer document regarding the framework.
On December 6, the ASF also issued recommended standards for loan servicers and trust administrators to use when reporting loan modification activity to investors in securitized residential mortgage loans. The guidance establishes a common, minimum recommended framework for securitization monthly reports, and includes provisions for defining modified loans and recommended loan modification data fields.
Please click here for the ASF “Recommended Definitions and Investor Reporting Standards for Modifications of Securitized Residential Mortgage Loans” and here for the press release.