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
- 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.