Structured Finance Industry Group issues latest Green Paper: RMBS 3.0

Date Published 11/29/2016
Author Structured Finance Industry Group
Theme Funding Housing Finance
Country United States

November 16, 2016
Structured Finance Industry Group issues latest Green Paper: RMBS 3.0 

RMBS 3.0 is an initiative of the Structured Finance Industry Group (SFIG), established with the primary goal of re-invigorating the "private label" residential mortgage-backed securities (RMBS) market in the US after the crisis. 

The Green Paper provides a Comprehensive Set of Proposed Industry Standards in the following areas related to RMBS:  

 - Representations and warranties, repurchase governance and other enforcement mechanisms; 

 - Due diligence, disclosure and data issues; and 

 - Roles and responsibilities of transaction parties and their communications with investors. 

There are a variety of basic models for RMBS issuance involving various types of sponsors, and issuers. By identifying, analyzing, explaining and creating solutions for the legal, operational and risk-related issues that concern post-crisis RMBS industry participants, and presenting the work in a centralized, user-friendly manner, RMBS 3.0 seeks to:

1. Create standardization where possible, in a manner that reflects widely agreed upon best practices and procedures. 

2. Clarify differences in alternative standards in a centralized and easily comprehendible manner to improve transparency across RMBS transactions. 

3. Develop new solutions to the challenges that impede the emergence of a sustainable, scalable and fluid post-crisis RMBS market. 

4. Draft or endorse model contractual provisions, or alternative “benchmark” structural approaches, where appropriate to reflect the foregoing. 

For full report see:

< Back to News