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
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© 2007 American Securitization Forum
May 17, 2007
Upcoming ASF Meetings & Events
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May 17: ASF Loan Modifications Working Group Meeting, 4-5 PM (ET)
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May 21: ASF Securitization Institute: Hot Topics and Final Exam, 6-8 PM (ET)
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May 25: ASF Membership Committee Call, 11 AM-12 PM (ET)
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June 5: ASF Board of Directors Meeting, 5-6:30 PM (ET)
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June 6: ASF 2007 Annual Meeting, 7:30 AM-6:30 PM (ET) Grand Hyatt, New York
Securitization-Related News and ASF Advocacy
ASF Submits Letter to FASB Regarding Linked Presentation: On May 15, the ASF submitted a letter to the Financial Accounting Standards Board (FASB) indicating the ASF's interest in engaging in a dialogue with FASB regarding whether a "linked presentation" accounting model may offer an alternative to the FAS 140 amendments project currently under consideration. The ASF plans to maintain an open dialogue on this topic with FASB, which hosted an educational session on the linked presentation model on May 16. Please click here for the letter. Please contact George Miller with any questions.
SEC to Hold Meeting on Credit Rating Agency Reform Act: On May 23, the SEC will hold an open meeting to consider whether to adopt rules to implement provisions of the Credit Rating Agency Reform Act of 2006. The SEC issued proposed rules on credit rating agency oversight on February 5, 2007, pursuant to the Credit Rating Agency Reform Act of 2006 passed on September 29, 2006 and must issue final rules by June 26, 2007. The ASF submitted a comment letter to the SEC on the proposed rules on March 22, 2007. Please click here for the proposed rules and here for the ASF comment letter.
ASF Hosts Sunset Seminar on Subprime Mortgage Loss Mitigation Strategies: On May 16, the ASF hosted a Sunset Seminar entitled, "Subprime Mortgage Loss Mitigation Strategies—What's Working?" This event was moderated by Tom Deutsch, ASF Associate Director, and featured 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. This was the most widely attended ASF Sunset Seminar to date, with over 400 registered individuals from over 270 institutions. Please click here to listen to the webinar of the event and access all supporting materials, including speaker bios, handouts and the accompanying PowerPoint presentation.
ASF Participates in Homeownership Security Summit: On May 14, the US Department of Housing and Urban Development (HUD) hosted a Homeownership Summit which included participation from investors, consumer advocates, decision-makers and key advisors. The goal of the summit was to assess the current housing situation and determine possible recommendations. Participants at the summit discussed the impact of risky, high-priced loans, possible actions against predatory lending and the effects of modernizing the Federal Housing Administration. George Miller, ASF Executive Director, participated on a panel to discuss ways government, nonprofit, financial, and mortgage groups can help borrowers safely get into homes and avoid foreclosure. Please click here for more information.
ASF Participates in Home Ownership Preservation Meeting: On May 16, ASF staff participated by invitation in a Home Ownership Preservation Initiative meeting in Chicago, hosted by the Federal Reserve Bank of Chicago. Participants discussed strategies and solutions to address mortgage delinquency, lost mitigation best practices and effective use of rescue funds, among other things. ASF participated in a panel discussion on "The View from the Investor and Wall Street" relating to subprime loss mitigation and foreclosure prevention.
ASF Loan Modifications Working Group Meeting: The ASF Loan Modifications Working Group will be meeting today at 4 PM (ET) to discuss the current draft of an ASF statement of principles, guidance and recommendations for the modification of securitized subprime mortgage loans. Please contact George Miller for more information.
Federal Reserve Board Chairman Speaks on Subprime Market: Federal Reserve Board Chairman Bernanke spoke this morning at the Federal Reserve Bank of Chicago's Annual Conference on Bank Structure and Competition on the subprime mortgage market, detailing current issues in the market and possible regulatory responses. He noted that "in deciding what actions to take, regulators must walk a fine line; we must do what we can to prevent abuses or bad practices, but at the same time we do not want to curtail responsible subprime lending or close off refinancing options that would be beneficial to borrowers." He indicated that "markets are adjusting to the problems in the subprime market, but the regulatory agencies must consider what additional steps might be needed. The Federal Reserve is currently undertaking a thorough review of all its options under the law" and he believes that "effective disclosures should be the first line of defense against improper lending." Please click here for the speech.
Senator Proposes Legislation on Foreclosure Prevention: On May 14, Senator Jack Reed (D-RI), Chairman of the Senate Banking Subcommittee on Securities, Insurance, and Investment, introduced comprehensive legislation to expand access to foreclosure prevention services to homeowners who are experiencing financial hardship. The bill, known as the Homeownership Protection and Enhancement (HOPE) Act of 2007, provides $615 million for the creation and operation of State Homeownership Protection Centers, one-time grants or subsidized loans to qualified families and effective HUD-approved counseling agencies. The bill also creates an affirmative duty for lenders and servicers to engage in reasonable loss mitigation prior to foreclosure and requires notifications by lenders to provide borrowers with information on the full array of counseling services available in their state. Please click here for more information.
Congressmen Call for Increased Federal Consumer Protection: On May 11, Representative Barney Frank (D-MA), Chairman of the House Financial Services Committee, and Representative John Dingell (D-MI), Chairman of the House Energy and Commerce Committee, sent a joint letter to the Federal Reserve Board, the Office of Thrift Supervision, the Federal Trade Commission, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation calling for the strengthening of protections for financial consumers against unfair and deceptive trade practices. The letter lists "deficiencies in the current regulatory regime" and requests "that the agencies work together to develop a meaningful strategy for improving federal consumer protection for all financial consumers." Please click here for the letter.
White House Issues Statement on GSE Reform Bill: On May 16, the White House Office of Management and Budget issued a statement on H.R. 1427, the Federal Housing Finance Reform Act of 2007. The statement notes that "the Administration supports legislation to create a stronger and more effective regulatory regime for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks" and that "the regulatory regime envisioned by H.R. 1427 is an improvement over current law," but indicates that "the Administration objects to several provisions of H.R. 1427." Overall, "the Administration supports House passage of H.R. 1427 as reported by the House Financial Services Committee, and looks forward to working with Congress to further strengthen the legislation." Please click here for the statement. The US House of Representatives is expected to vote today on H.R. 1427, which passed in the House Financial Services Committee on March 29, 2007.
Federal Reserve Board Vice Chairman Speaks on Derivatives and Systemic Risk: On May 16, Federal Reserve Board Vice Chairman Donald L. Kohn gave a speech at the Federal Reserve Bank of Atlanta's Financial Markets Conference on the growth of the credit derivatives markets and the implications for public policy objectives. He noted that "to formulate appropriate policy responses, we first must identify how credit derivatives might be affecting systemic risk" and mentioned that "the most significant aspect of credit derivatives has been the marriage of derivatives and securitization technologies in synthetic collateralized debt obligations (CDOs)." He indicated that "systemic risk in the financial markets most likely has declined on balance, but it still exists" and that "both market participants and public authorities need to think carefully about how systemic risks might crystallize in the new world that credit derivatives have helped create." Please click here for the speech.
Moody's to Revise Assumed CDO Correlations: On May 15, Moody's Investors Service released a report entitled, "Increased Overlap Of Underlying Assets May Warrant Increase In Assumed Correlations Between CDOs," which states that Moody's believes that increasing overlaps in the securities underlying ABS CDOs may have increased correlations between these CDOs' debt classes in recent months. In light of these developments, Moody's is re-examining its correlation assumptions for ABS CDO tranches going into other ABS CDOs and CDO squared transactions and will complete the analysis over the next few months. Please visit Moody's website for more information.
S&P Revises RMBS Closed-End Second-Lien Cash Flow Methodology: Standard & Poor's has updated the cash flow assumptions it uses when assessing RMBS structures for transactions that contain U.S. closed-end second-lien (CES) mortgage loans. Standard & Poor's will use the constant payment rate and default assumptions published in its report when assessing the available excess interest in all senior-subordinate overcollateralization transactions that contain CES loans. Please click here for the report.
Conferences/Events
ASF Annual Meeting Speakers Announced: The agenda for the ASF 2007 Annual Meeting is now updated with many of the speakers who are confirmed to speak on the panels. Please click here for the updated agenda. The event, featuring FDIC Chairman Sheila C. Bair as the keynote speaker, will be held on June 6 at the Grand Hyatt in New York. Please click here to register.
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.