ASF
360 Madison Avenue
17th Floor
New York, NY
10017-7111
646.637.9211
George Miller
Executive Director
646.637.9216
Tom Deutsch
Associate Director
646.637.9235
Tere Petersen
Director, Events & Marketing
646.637.9236
Jooho Lee
Analyst
646.637.9259
Justin Ross
Analyst
646.637.9238
To update your contact information, please email
Ida Cece.
© 2007 American Securitization Forum
May 10, 2007
Upcoming ASF Meetings & Events
-
May 11: ASF Accounting Subcommittee Meeting, 2-3 PM (ET)
-
May 14: ASF Assignee Liability Working Group Meeting, 4-5 PM (ET) ASF Securitization Institute: Introduction to Securitization Portfolio Management, 6-8 PM (ET)
-
May 16: ASF Entertainment Task Force Call, 2-3 PM (ET) ASF Executive Committee Meeting, 3:30-5:30 PM (ET) ASF Sunset Seminar, Subprime Mortgage Loss Mitigation Strategies—What's Working?, 5:30-7 PM (ET)
-
May 17: ASF Loan Modifications Working Group Meeting, 4-5 PM (ET)
Securitization-Related News and ASF Advocacy
Sunset Seminar on Subprime Mortgage Loss Mitigation Strategies: On May 16 from 5:30-7 PM (ET), the ASF will be hosting a Sunset Seminar entitled, "Subprime Mortgage Loss Mitigation Strategies—What's Working?" at the ASF's New York Headquarters. This seminar will examine the ins and outs of loss mitigation strategies being employed in the current market environment. The seminar will be moderated by Tom Deutsch, ASF Associate Director, and will feature as panelists Christopher Flanagan of JPMorgan Securities Inc., Stephen Kudenholdt of Thacher Proffitt & Wood LLP, Shane Ross of Litton Loan Servicing and Mani Sabapathi of Prudential Investment Management Inc. Participants outside of the New York area will be able to access the seminar via webinar. Please note that attendance and webinar access are free for ASF members and $49 for non-members. Please click here for more information, including a link to register.
ASF Submits Comments on Subprime Lending Statement: On May 7, the ASF submitted a comment letter to the federal bank regulatory agencies in response to the Proposed Statement on Subprime Mortgage Lending. Among other things, the letter requests that the agencies clarify that the guidelines are in fact guidelines and not outright prohibitions, and that any final pronouncement provide the flexibility and uniformity for the markets to innovate and operate efficiently. The ASF would like to thank all of the members who participated in the process of developing these comments. Please click here for the letter and here for the Proposed Statement. Please contact George Miller with any questions.
ASF to Commission Research on Benefits of Securitization: The ASF is requesting proposals from researchers to undertake a study of the benefits of securitization in the United States. The study will encompass and incorporate both quantifiable benefits and factors that do not lend themselves as easily to quantitative analysis. Please click here for the request for proposals that is being distributed to potential researchers which provides background information, questions detailing the scope of the research and criteria for the selection of a researcher. Proposals should be submitted to George Miller and Steve Davidson by the close of business on Tuesday, May 29. Please contact George Miller with any questions.
ASF Accounting Subcommittee Meeting: The ASF Accounting Subcommittee will be meeting tomorrow from 2-3 PM (ET) to discuss the FAS 140 amendments project and the application of accounting standards to loss mitigation activities of QSPEs. Please contact George Miller with any questions.
ASF Assignee Liability Working Group Meeting: The ASF Assignee Liability Working Group will be meeting on Monday, May 14 from 4-5 PM (ET) to continue discussions on specific issues pertaining to assignee liability. Please contact George Miller or Tom Deutsch with any questions.
ASF Executive Committee Meeting: The ASF Executive Committee will be meeting on Wednesday, May 16 from 3:30-5:30 PM (ET) at the ASF's New York Headquarters. Briefing materials will be distributed tomorrow.
ASF to Participate in Homeownership Security Summit: On May 14, ASF staff will participate by invitation in a Homeownership Security Summit in Washington DC, sponsored by the Secretary of Housing and the FHA. The purpose of the summit is to discuss and share innovative strategies to help prevent mortgage foreclosures. ASF will participate in a panel discussion on loss mitigation and foreclosure prevention strategies in the secondary market. A webcast of the summit will be available on the Department of Housing and Urban Development website after the event.
ASF to Participate in Home Ownership Preservation Meeting: On May 16, ASF staff will participate by invitation in a Home Ownership Preservation Initiative meeting in Chicago, hosted by the Federal Reserve Bank of Chicago. Participants will have the opportunity to discuss strategies and solutions to address mortgage delinquency, lost mitigation best practices and effective use of rescue funds, among other things. ASF will participate in a panel discussion on "The View from the Investor and Wall Street" relating to subprime loss mitigation and foreclosure prevention.
House Committee Holds Hearing on Secondary Market and Subprime Lending: On May 8, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled, "The Role of the Secondary Market in Subprime Mortgage Lending." The hearing featured testimony from industry participants and representatives of consumer groups. Please click here for a full witness list, prepared testimony and a webcast of the event.
House Committee Passes FHA Reform Bill: On May 3, the House Financial Services Committee passed H.R. 1852, the "Expanding American Homeownership Act of 2007" introduced in March, 2007 by Representatives Maxine Waters (D-CA) and Barney Frank (D-MA). The bill increases loan limits in high cost areas of the country, authorizes zero down and lower down payment FHA loans for certain homebuyers and directs FHA to underwrite to certain borrowers with higher credit risk, among other things. The bill also adds a number of homebuyer protections for families taking out riskier zero down payment loans and for borrowers who represent a higher credit risk. The bill now awaits a vote by the full House of Representatives. Please click here for more information.
Shadow Regulatory Committee Releases Statement on Subprime Lending: On May 7, the Shadow Financial Regulatory Committee of the American Enterprise Institute for Public Policy Research released a statement entitled, "Subprime Mortgage Lending Remedies and Concerns." The statement notes that "while defaults on teaser-rate loans have contributed to the rise in delinquency and foreclosure rates, at the current time the default rate on subprime mortgages is running just less than that experienced as recently as 2000-01" and that "the housing and mortgage-lending bubbles were fueled by many factors." The statement indicates that "the Committee disagrees with calls for massive federal intervention into mortgage markets" and that the Committee believes "the only reform that merits attention at this time is for regulators to require vastly simplified disclosures to borrowers on their applications and on all follow-up documents." Please click here for the statement and here for more information on the Committee.
FASB to Issue Proposed Staff Position on Transfers of Financial Assets: At its May 8 Board meeting, the Financial Accounting Standards Board (FASB) decided to issue for comment a proposed FASB Staff Position (FSP) on the accounting for a transaction involving a transfer of a financial asset and a repurchase financing of that asset that involves the same parties to the initial transfer. The FSP will propose potential factors involved in determining if the transfer of the asset and the repurchase financing of the asset are linked. The FSP will also request comments on whether the guidance is operational and on what potential transition problems could arise. This FSP will be related to FAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Please visit the FASB website for more information.
S&P Updates Framework for Applying Counterparty And Supporting Party Criteria: On May 8, Standard and Poor's issued a report revising its framework for applying counterparty and supporting party criteria to structured finance transactions, noting that S&P takes into account the credit risk of the counterparty in rating these transactions. The report indicates that S&P gives consideration to the ratings on the counterparty, both long-term and short-term, and the period of exposure the transaction has to that counterparty, among other things. Please click here for the report.
Ginnie Mae Proposes Rule on Issuance of Physical Certificates: On May 7, Ginnie Mae published in the Federal Register proposed regulations that would restrict the issuance of physical certificates representing Ginnie Mae MBS and would clarify that book-entry securities may be withdrawn from the Federal Reserve book-entry system after Ginnie Mae has approved a request for physical certificates, also known as definitive securities, in the same amount. The proposed rule would also eliminate the requirement for a classified balance sheet. Please click here for the proposed rule. Comments are due by July 6, 2007.
Fitch Publishes Criteria Report on Credit Risk Models: On May 8, Fitch Ratings released a criteria report entitled, "How Much Credit in Credit Risk Models" in response to its assumption that the increasing use of credit portfolio risk models by financial institutions will accelerate with the establishment of Basel II. The report outlines the factors that influence the degree of comfort Fitch derives from an institution's credit risk models in the assignment of ratings and is the first of a series that will address the role of internal economic capital models in assessing risk appetite and capital adequacy in financial institutions. Please click here for the report.
Conferences/Events
Annual Meeting Hotel Deadline Monday, May 14: The ASF has a limited block of rooms for June 5 and 6 at the Grand Hyatt in New York for the ASF 2007 Annual Meeting at $329 per night. Reservations may be made by calling 1.800.233.1234 and asking for the American Securitization Forum rate. Please act now to secure your room, as the deadline for making reservations at the group rate is this Monday.
FDIC Chairman to Keynote ASF Annual Meeting: We are pleased to announce that Sheila C. Bair will be delivering the keynote address at ASF's 2007 Annual Meeting, to be held June 6 at the Grand Hyatt in New York. Please click here to view the agenda. The ASF is currently finalizing speakers for this event. Please submit all speaker suggestions to Janet Brathwaite of the ASF staff. Please click here to register for the event.
ASF Securitization Institute Faculty Nominations: The ASF is seeking nominations for faculty members to develop and present course materials and content for the ASF Securitization Institute, ASF's comprehensive training and education program on core securitization market topics and concepts taught by distinguished securitization market participants. We are currently inviting experienced and knowledgeable industry members—the "leading lights" of the industry—to serve as faculty members for each of the sessions. Please click here to submit nominations and here for more information about the Institute, including dates for upcoming offerings and links to register.