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
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© 2007 American Securitization Forum
May 31, 2007
Upcoming ASF Meetings & Events
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June 1: ASF Loan Modifications Working Group Call, 10-11 AM (ET) ASF Assignee Liability Working Group Call, 12-1 PM (ET)
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June 5: ASF Student Loan Issuers Subforum Call, 11 AM-12 PM (ET) ASF Executive Committee Strategic Planning Session, 1-5 PM (ET) 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
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June 7: ASF Outside Counsel Subforum Call, 3:30-5 PM (ET)
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June 19: ASF Tax Subcommittee Meeting, 4-5:30 PM (ET)
Securitization-Related News and ASF Advocacy
SEC Adopts Rules on Credit Rating Agency Oversight: On May 23, the SEC voted to adopt final rules to implement provisions of the Credit Rating Agency Reform Act of 2006, which was enacted by Congress on September 29, 2006. The rules are designed to improve competition among nationally recognized statistical rating organizations (NRSRO) and prevent unfair and abusive practices in the industry. The rules detail the procedure for applying and registering as an NRSRO, recordkeeping requirements for NRSROs and requirements designed to protect NRSRO impartiality. The SEC had released proposed rules on credit rating agency oversight in February, 2007 and the ASF had submitted a comment letter to the SEC on March 22, 2007. Please click here for the SEC's press release on the final rules, which includes a link to a video of a statement by SEC Chairman Christopher Cox, and here for the ASF comment letter. The SEC has not yet released the final rules.
ASF Loan Modifications Working Group Call: The ASF Loan Modifications Working Group will be having a conference call on Friday, June 1 from 10-11 AM (ET) to finalize the draft ASF statement of principles, recommendations and guidelines for the modification of securitized subprime mortgage loans. Please click here for the current draft. Please contact George Miller with any questions.
ASF Assignee Liability Working Group Call: The ASF Assignee Liability Working Group will be having a conference call on Friday, June 1 from 12-1 PM (ET) to finalize the draft ASF expository paper which presents ASF's positions on assignee liability together with supporting arguments and analysis. Please click here for the current draft and here for an executive summary of the paper. Please contact George Miller with any questions.
ASF Board of Directors Meeting: The ASF Board of Directors will be meeting on Tuesday, June 5 from 5-6:30 PM (ET) at the ASF's New York Headquarters. Briefing materials will be distributed tomorrow.
ASF Executive Committee Strategic Planning Session: The ASF Executive Committee will be meeting on Tuesday, June 5 from 1-5 PM (ET) at the ASF's New York Headquarters to address several strategic planning issues and challenges confronting the ASF. Briefing materials will be distributed prior to the meeting.
ASF Tax Subcommittee Initial Meeting: The ASF Board of Directors has created a separate Tax Subcommittee of the ASF to address the many tax-related issues that impact the securitization industry. The Subcommittee will have its initial meeting on Tuesday, June 19 from 4-5:30 PM (ET). Agenda items include the consideration of a potential ASF comment letter to the Texas Comptroller regarding the implementation of the Texas margin tax scheduled to go into effect on January 1, 2008 and a discussion of REMIC issues related to residential mortgage loan modifications. Please contact Tom Deutsch with any questions.
FASB Discusses FAS 140 Amendments Project and Proposed FSP: At its May 30 meeting, the Financial Accounting Standards Board (FASB) discussed the FAS 140 amendments project and came to several preliminary decisions. FASB members decided to consider treating certain transfers under a linked presentation model, subject to certain to-be-determined criteria. FASB plans to further research the removal of the QSPE concept in its entirety from FAS 140 and also will reconsider the legal isolation criteria. The Board also discussed the transition provisions of the proposed FASB Staff Position (FSP) 140-3 on the transfer of a financial asset and a repurchase financing of that asset that involves the same parties to the initial transfer. The Board tentatively decided on the following transition alternative: prospective application to new transactions plus transactions that are modified after the effective date and to outstanding repurchase agreements as of the effective date. The FSP is expected to be issued for comment in July. Please click here for the meeting handouts.
Federal Reserve Board Announces Topics for June Hearing on Abusive Lending: On May 29, the Federal Reserve Board announced the discussion topics for its June 14 public hearing under the Home Ownership and Equity Protection Act (HOEPA). The purpose of the hearing is to gather information about how the Board might use its rulemaking authority to curb abusive lending practices in the home mortgage market, including the subprime sector, in a way that preserves incentives for responsible lenders to provide credit to borrowers. Hearing participants will discuss whether the Board should use its rulemaking authority to address concerns about certain terms and practices related to home mortgage loans, including prepayment penalties, escrow accounts for taxes and insurance on subprime loans, "stated income" or "low doc" loans and consideration of a borrower's ability to repay a loan. Please click here for more information.
Federal Reserve Chairman Responds to Senator's Letter on Predatory Lending: On May 18, Federal Reserve Board Chairman Ben Bernanke sent a letter to Senator Christopher Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, in response to Dodd's letter to Bernanke sent on April 23, 2007. Dodd's letter urged Bernanke to exercise the Federal Reserve Board's obligations under the Home Ownership and Equity Protection Act (HOEPA) of 1994 to issue regulations that address predatory lending practices in the subprime mortgage market. Bernanke's response noted previous revisions to the Board's HOEPA rules and that "the Board plans to consider how it might further use its rulemaking authority…to address particular lending practices." He indicated that Board is seeking "the views of interested parties" through the June 14 hearing and other outreach efforts. Please click here for the letter, here for Senator Dodd's statement in response to the letter and here for the April 23 letter.
House Committee Passes FHA Manufactured Housing Loan Modernization Bill: On May 23, the House Financial Services Committee passed H.R. 2139, the FHA Manufactured Housing Loan Modernization Act of 2007, which will modernize the FHA Title I Personal Property Manufactured Loan Program and is designed to assist homeowners with Federal Home Administration (FHA) loans for manufactured housing. Among other things, the bill makes FHA personal property manufactured home loans more acceptable to Ginnie Mae for securitization by providing a guarantee comparable to that for FHA single family loans and eliminating the volume cap on the amount of loans FHA can guarantee for any lender. The bill also requires the US Department of Housing and Urban Development (HUD) to revise its underwriting criteria for FHA personal property manufactured home loans to ensure that the program is financially sound. Please click here for more information.
Fannie Mae Announces Effective Date for Updated Single-Family MBS Master Trust Agreement: Fannie Mae has announced that its updated Single-Family MBS Master Trust Agreement, which will be used for securitizations of fixed-rate and adjustable rate mortgages, will be effective on June 1, 2007. All single-family mortgage-backed securities issued on or after that date will conform to the terms of the new Master Trust Agreement, which includes clarifications for servicing MBS mortgage loans that will apply generally to all loans in Fannie Mae MBS, whether the security is based on the current Trust Indentures or the new Master Trust Agreement. Fannie Mae has also published a new MBS Prospectus for single-family pools that will apply to all single-family mortgage-backed securities issued on or after June 1, 2007. Please click here for the Master Trust Agreement, here for the MBS Prospectus and here for more information.
S&P Issues Methodology for Rating Global Structured Finance Securities: On May 29, Standard & Poor's issued a report entitled, "Principles-Based Rating Methodology For Global Structured Finance Securities." The report details S&P's core methodologies for analyzing and rating securitization transactions and notes that its analytical framework for structured finance securitization ratings comprises five key areas of analysis: credit quality of the securitized assets, legal and regulatory risks, payment structure and cash flow mechanics, operational and administrative risks and counterparty risk. The report also details the range of and meaning behind S&P's structured finance ratings. Please click here for the report.
Fitch Updates Asset Manager Rating Criteria: On May 29, Fitch Ratings issued a report updating its asset manager rating criteria. Fitch's updated criteria for rating asset managers include a reorganization of the rating factors in the asset manager rating scorecard into different categories that more clearly express rating considerations and conclusions. The criteria also contain refreshed weightings at both the category and factor level, with greater focus on staffing, portfolio management, and risk management and controls. Please click here for the report.
Conferences/Events
ASF 2007 Annual Meeting: The ASF 2007 Annual Meeting will be held on Wednesday, June 6 at the Grand Hyatt in New York. Key players in the securitization industry will share their views and perspectives at this unique event, which will feature FDIC Chairman Sheila Bair as the keynote speaker. Don't miss this opportunity to network with the leaders of the industry. Online registration is closed, but walk-in registrants are welcome. All walk-in registrants, including investors and employees of sponsoring organizations, will be charged a $25 on-site administrative fee. Please click here for more information on the Annual Meeting and here for the program agenda, including confirmed speakers.
ASF Securitization Institute Registration: Registration is now open for future offerings of the ASF Securitization Institute, the ASF's comprehensive training and education program on core securitization market topics and concepts taught by distinguished securitization market participants. The program will be offered in three two-day events: two introductory courses on securitization fundamentals in July, 2007 and October, 2007 and an advanced course on applied securitization in November, 2007. A comprehensive thirteen week evening course will be offered in spring, 2008. Please click here for more information, including links to register and a detailed curriculum. Register early, as seating is limited for all sessions.
ASF Welcomes New Member Firms: The ASF is pleased to welcome the following member firms who joined the ASF in May: Inter-American Development Bank; MKP Capital Management, L.L.C.; Option One Mortgage Corporation; PB Capital Corporation; Seix Advisors; Terminus Asset Management Co.; and Thelen Reid Brown Raysman & Steiner LLP.