January 6, 2016 Newsletter
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January 6, 2016

Industry Jobs

SFIG Calendar



Advocacy Outlook

Industry News Highlights


SFIG is now accepting financial contributions to sponsor our Women in Securitization initiativeYour contribution is vital to continuing initiative efforts to support the retention and promotion of women in the structured finance industry.  To maximize the contributions WiS is able to make to the structured finance industry in 2016, we count on financial support from our corporate members in order to provide the highest quality programming and events. SFIG will support WiS with a 50 percent match of our member sponsorship target.

With ABS Vegas fast approaching, WiS encourages individuals and institutions to pledge their support for this important initiative. Individuals and institutions that commit sponsorship dollars to WiS by February 12, 2016 will have their support recognized through publicity materials and further sponsorship benefits described here.

In addition to an exciting event and plenary session at ABS Vegas, your sponsorship dollars will support a robust agenda for the coming year, including:

  • Quarterly Professional Development Workshops on topics such as:
    • Personal Negotiation & Self-Promotion
    • Public Speaking & Executive Communication Skills
  • Networking Receptions
  • Expanded and Improved Professional Support Opportunities
  • WiS Week Activities and Information

WiS offers several tiers for corporate institutions and individuals to determine how they can best support and sponsor this important initiative, and sponsor and supporter status is renewable annually. A full review of the benefits available at each level of initiative sponsorship is available here.


On December 21st, SFIG submitted an amicus brief, kindly drafted by Freshfields Bruckhaus Deringer US LLP, to the United States Bankruptcy Court in the Southern District of New York regarding the adversary proceeding Lehman Brothers Special Financing Inc. v. Bank of America National Association et al.

The case is important in that a decision favorable to Lehman may call into question the scope of the "safe harbor" provisions of the Bankruptcy Code applicable to swaps and other "protected contracts", contrary to most market participants' expectations.

SFIG’s amicus brief supported the Noteholder Defendants’ motion to dismiss the Lehman Brothers complaint. SFIG’s motivation in filing the amicus brief was driven in large part to avoid the market uncertainty that would likely result from a ruling favorable to Lehman Brothers.

If you are interested in joining SFIG’s Legal Counsel Committee, please contact Alyssa.Acevedo@sfindustry.org.


On December 22nd, SFIG launched its Industry Guide on the Risk Retention rule.

SFIG’s Industry Guide initiative seeks to contribute to market openness and transparency via a series of guides that reflect “general consensus” opinions of members interested in those particular regulatory rulemakings.

Over the last year, the SFIG Risk Retention Industry Guide Working Group, including, but not limited to, issuers, investors, lawyers, accountants, trustees, and underwriters, have worked together to define a consistent approach to the Risk Retention rule. 

Given that the RMBS compliance date for Risk Retention was Thursday, December 24th, SFIG has developed an interim guide focused on issues either relevant to all asset classes or specific to RMBS. A final guide will be released next year, ahead of the December 24, 2016 compliance deadline for ABS. This guide is the second in SFIG’s series of industry guides, following the release of our NRSRO Industry Guide in June.

Developed under the leadership of Julie Gillespie of Mayer Brown, the views set forth in the Industry Guide do not constitute legal advice but instead reflect industry views and consensus positions on the questions presented based on various resources and numerous group discussions. All of the views set forth in the Industry Guide are subject to change as market practices develop and/or if additional guidance from the regulatory agencies becomes available. While presented as a consensus, we would highlight that the guide does not purport to represent that viewpoints have been universally adopted by every SFIG member. 

Please contact Sairah.Burki@sfindustry.org, Jennifer.Wolfe@sfindustry.org, or Alyssa.Acevedo@sfindustry.org with any questions.

As an authoritative and normalized service platform for China's securitization industry, the 2016 Annual Conference of the China Securitization Forum ("CSF") will be held on April 7-9th at the China National Convention Center. The theme of this year's conference will be “Global Vision, Stable Development.” The 2016 Annual Conference is being hosted by China Securitization Forum, supported by SFIG and co-organized by IMN. SFIG will, for its second year, be sending a member delegation to the 2016 Conference, which expects to host more than 3,000 professionals active in both domestic and overseas securitization.

For more detailed information about CSF and CSF Annual Conference, please visit CSF’s official website and the Annual Conference’s website.


SFIG currently has three open positions for:

  • Data/Policy Analyst: will help support group-wide strategy efforts and initiatives as they relate to the association’s database and various policy requirements. The Analyst will also support SFIG’s advocacy efforts through development of a political action committee database. Additional information on the position, as well as a link to the application, is available here.

  • Communications and Media Manager: will be an integral member of SFIG staff, providing support across the whole organization and serving as a vital link between SFIG, its membership and other external audiences. Additional information on the position, as well as a link to the application, is available here.

  • Executive/Administrative Assistant: will be responsible for supporting the Executive Director and Directors of Policy and Advocacy while directing overall front office activities, including the reception area, mail, calendar coordination, meeting set-up, purchasing requests and overall office management. Additional information on the position, as well as a link to the application, is available here.

Some of the latest industry positions available include:

Analyst   Moody’s Corporation 12-15-15
Associate Analyst   Moody’s Corporation 12-15-15
AVP - Analyst   Moody’s Corporation 12-15-15
VP – Senior Analyst   Moody’s Corporation 11-02-15
Associate Analyst 2   Moody’s Corporation 11-02-15
Senior Vice President, RMBS Monitoring   Moody’s Corporation 11-02-15
High Yield - Legal Analyst   Babson Capital Management 10-22-15
Finance Associate   Hogan Lovells US LLP 10-09-15
Attorney - Securitization   Ford Motor Credit Company 9-29-15

Please visit our Jobs page for a full listing of available positions.

For questions about positions at SFIG, please contact Jobs@sfindustry.org. For questions about the website jobs portal, please contact Website@sfindustry.org.


FRIDAY, January 8, 2016
1:00 p.m. – 2:00 p.m. (EST)


MONDAY, January 11, 2016
2:00 p.m. – 3:00 p.m. (EST)


TUESDAY, January 12, 2016
11:00 a.m. – 12:00 p.m. (EST)


SUNDAY, February 28, 2016 – WEDNESDAY, March 2, 2016
The Aria Resort & Casino
Las Vegas, NV
Registration is available here.


TUESDAY, May 31, 2016 – WEDNESDAY, June 1, 2016
Hyatt Regency Toronto
Toronto, Ontario
Registration is available here.


If you would like to participate in the work SFIG is undertaking through our committees as highlighted below, please e-mail Committees@sfindustry.org. For specific inquiries on any of SFIG’s advocacy efforts, please contact the staff member listed for the related project.

SFIG’s Marketplace Lending Committee was established in August 2015, as an SFIG participant committee and is open to all SFIG members who have a legitimate interest in marketplace lending. The committee was formed with two primary intentions: 1) to work with members involved in marketplace lending to educate the industry as a whole, with a particular focus on the securitization of assets generated through that lending channel; and 2) to determine appropriate securitization-specific policy and engage in related advocacy, leveraging SFIG’s prominence and experience across all asset classes to support the continued responsible growth of securitization in marketplace lending. For its first initiative, the committee commented on the Treasury Department's Request for Input on Online Marketplace Lending. The comments were submitted on September 30th and drafted by counsel at Chapman and Cutler LLP.

Members interested in participating should contact Amanda.Bateman@sfindustry.org.

SFIG’s Student Loan Committee will be responding to Fitch’s proposed amendments to FFELP student loan ABS rating methodology. The committee also recently responded to the Proposed Changes to Moody’s Approach to Rating Securities Backed by FFELP Student Loans.

To join SFIG’s Student Loan Committee and learn more, please contact Alyssa.Acevedo@sfindustry.org.

The RMBS 3.0 Task Force released its Third Edition RMBS 3.0 Green Papers in November 2015. The task force has continued its efforts to address key issues specific to private label mortgage securities through work-streams relating to (1) Representations, Warranties, and Repurchase Enforcement; (2) Due Diligence, Data, and Loan-Level Disclosure; and (3) Role of Transaction Parties and Bondholder Communications. We encourage members to participate in any or all of the working groups to contribute towards the mission of RMBS 3.0. For its 2016 agenda, the task force will address topics including the inclusion of an independent Deal Agent in transactions, Bondholder Communications, Data and Loan-Level Disclosure, Repurchase Enforcement, and Settlements, as well as undertake a review of the previously published Green Papers.

For additional information on RMBS 3.0, please contact Amanda.Bateman@sfindustry.org.

SFIG, through its GSE Reform Task Force, along with several other trade associations, submitted a letter to the FDIC, Fed and OCC regarding the effect of homeowner’s association ‘super-liens’ on private-label RMBS and whole loan transactions. The task force also submitted comments on FHFA’s update to the single security initiative on October 7, 2015. The task force is expecting to receive an update from the SFIG participants on the Industry Advisory Group for the Common Securitization Platform and Single-Security following its second meeting on December 7th. The task force has also formed policy positions on the Carney-Delaney-Himes GSE Reform bill and updated its briefing book to support its advocacy efforts. With the release of the bill, SFIG staff also updated its GSE Reform Legislative Comparison, which analyzes key provisions in the five most recent housing finance reform bills including the Johnson-Crapo bill and the PATH Act. Additionally, the task force will continue to engage the Federal Housing Finance Agency on its Single-Security proposal, guarantee fee pricing and Strategic Plan for 2015-2019.

To join SFIG’s GSE Reform Task Force and learn more, please contact Amanda.Bateman@sfindustry.org.

The Mortgage Loan-Level Disclosure Task Force is studying the recent Regulation AB II release of Schedule AL and comparing it to SFIG’s Schedule L submission to the Securities and Exchange Commission in February 2014. SFIG also continues to have weekly Mortgage Industry Standards Maintenance Organization calls to go through data elements that lenders should deliver in securitizations. The task force will also be conducting an analysis of the data elements included in SFIG’s Schedule L submission in order to determine any privacy concerns.

Please contact Alyssa.Acevedo@sfindustry.org for additional information on SFIG’s work on this topic.

The Volcker Task Force has been working with SFIG’s various asset class and legal counsel committees to identify areas within the Volcker Rule in need of clarification, particularly questions regarding covered funds and the loan securitization exemption.

Please contact Amanda.Bateman@sfindustry.org to participate on the Task Force.

The Risk Retention Industry Guide Working Group recently launched its interim Industry Guide, ahead of the RMBS compliance date, focused on issues either relevant to all asset classes or specific to RMBS. The Working Group continues to work on a final guide with the goals of creating best practices and developing consensus positions around several areas within the Credit Risk Retention final rule.

Please contact Alyssa.Acevedo@sfindustry.org with any questions.

SFIG’s Chinese Market Committee continues to hold discussions with a focus on SFIG’s partnership with the Chinese Securitization Forum, potential upcoming educational discussions and the sharing of recent market developments in China.

If you would like more information on SFIG’s work with respect to Chinese securitization, please contact Alyssa.Acevedo@sfindustry.org.

SFIG’s Shadow Banking Task Force has established the following agenda:

  • Leverage the predictive powers of the G20’s shadow banking initiative to determine future SFIG advocacy initiatives
  • Assess the level of regulation to which our members are already subject
  • Measure the full impact of those regulations on lending decisions and business models
  • Provide input into IOSCO, BCBS and IAIS on the revitalization of securitization markets

To register your interest in SFIG’s Shadow Banking Initiative, please contact Amanda.Bateman@sfindustry.org.

The Regulation AB II Task Force will focus on the disclosure and offering process requirements within the final rule. Two work streams have been formed to develop a comment letter on the proposed rules that remain outstanding and to produce an industry guide for critical elements of the final rule.

SFIG members who are interested in joining this task force or asset specific committees should contact Alyssa.Acevedo@sfindustry.org.

The Regulatory Capital and Liquidity Committee is addressing industry concerns related to the Federal Reserve Board’s Final Rule on the Liquidity Coverage Ratio (“LCR”). This committee will also develop a comment letter when U.S. regulators release their proposed Net Stable Funding Ratio (“NSFR”).

To become involved in SFIG’s advocacy on the final LCR or NSFR rules, please contact Alyssa.Acevedo@sfindustry.org.

The Derivatives in Securitization Task Force obtained no-action relief from the CFTC giving swap dealers comfort that the CFTC would not take enforcement action against swap dealers that did not comply with certain CFTC Regulations when taking actions in response to the credit ratings downgrade of a counterparty to a legacy swap. The relief applies to swaps with SPVs that were in existence prior to October 10, 2013. The task force also commented on the CFTC’s proposal on margin requirements for uncleared swaps, as well as the prudential regulators’ proposal regarding margin and capital requirements for covered swap entities.

SFIG members who are interested in learning more about this initiative should email Amanda.Bateman@sfindustry.org.

The High Quality Securitization ("HQS”) Task Force responded to the European Commission’s consultation on an EU framework for simple, transparent and standardized securitization on May 12, 2015. The task force also previously responded to the BCBS-IOSCO consultation on its criteria for identifying simple, transparent and comparable securitizations. SFIG’s comments were built off of those sent to the European Banking Authority on January 14th (available here) regarding its proposed criteria and to the European Central Bank and Bank of England last summer (available here) regarding the development of a sustainable securitization market in Europe.

To join the HQS Task Force, please contact Amanda.Bateman@sfindustry.org.


Cadwalader recently published an article that focused on the jurisdictional and transparency aspects of the latest EU Proposed Regulation on Securitisation.

As reported by SFIG on December 2nd, the Presidency of the Council of the EU (“Council”) published its third compromise proposal on November 30th on the proposed regulation which creates a European framework for simple, transparent and standardized securitization. The Council confirmed on December 8th that this latest proposal is the Council’s agreed negotiating position.

As Cadwalader explains, the draft regulation will now need to be considered by the European Parliament and, once they have developed their proposal, the EU legislative institutions will negotiate a common position. The potential impact on the US includes the following areas: jurisdiction and risk retention, transparency requirements, due diligence requirements for EU institutional investors, and criteria for credit-granting, according to Cadwalader.


Last Monday, December 28th, the U.S. Securities and Exchange Commission (“SEC”) issued two annual staff reports on credit rating agencies that are registered as Nationally Recognized Statistical Rating Organizations (“NRSROs”). These reports include the Annual Examination Report and the Annual Report to Congress. According to the SEC’s press release, they found “that all of the NRSROs have enhanced their understanding of their obligations as regulated entities and that at many of the firms, operational improvements made in prior years are being further integrated and enhanced.”

The reports also note that “certain smaller NRSROs have continued to increase their market share, particularly for credit ratings of asset-backed securities”… and discuss “new requirements for NRSROs that took effect in June to address internal controls, conflicts of interest, disclosure of credit rating performance statistics, procedures to protect the integrity and transparency of rating methodologies, disclosures to promote the transparency of credit ratings, and standards for training, experience, and competence of credit analysts.”


The China Securitization Forum's ("CSF") Board of Directors, Standing Committees and Member Committees are being formed now. The CSF Nominating Committee has begun preparations for elections. The nominating process will conclude on January 31, 2016. The CSF welcomes securitization professionals to actively apply for positions as CSF officers and to participate in the ongoing construction of CSF.

Individuals that are interested in China's growing securitization market are welcome to join CSF as individual members. Registration is free of charge. CSF will create a unique online personal membership account for each individual member. CSF individual members may use their online personal membership accounts to manage their personal information, participate in CSF-sponsored group discussions and engage in various other activities.

If you are interested in joining SFIG's Chinese Market Committee and learning more about our partnership with the CSF, please contact Alyssa.Acevedo@sfindustry.org.


According to a recent article by Nasdaq, Fannie Mae and Freddie Mac (“GSEs”) are expected to ramp up sales of credit risk sharing transactions that will help transfer housing market risk away from the public sector. The Federal Housing Finance Agency, through its 2016 Scorecard, stated that the GSEs have a mandated goal to transfer the risk on 90 percent of the unpaid principal balance of the riskiest mortgages they back to private investors this year. The advent of Fannie Mae’s Connecticut Avenue Securities and Freddie Mac’s Structured Agency Credit Risk transactions has given birth to a new asset class, according to the article, and could save taxpayers billions in the event of another crisis.

According to the article, “to the extent that yield-starved investors do want to take on [mortgage credit] risk, Fannie’s and Freddie’s new securities are the only outlet.”


The Federal Housing Finance Agency intends to conclude its process of evaluating competing scoring models for potential adoption by Fannie Mae and Freddie Mac (“GSEs”) in 2016, according to an article in National Mortgage News. The agency began reviewing credit scoring models offered by Fair Isaac Corp. (“FICO”) and VantageScore early in 2015.

The GSEs currently use the FICO 4 credit scoring model which was released in 2004. According to the article, the most recent model FICO 9 was released in late 2014 and will be more predictive when it comes to scoring borrowers' capacity to manage debt. “A more predictive score will tend to allow lenders to be able to underwrite more consumers,” said Joanne Gaskin, senior director for scores and analytics at FICO. The agency is continuing to talk with a broad range of stakeholders.


According to a recent American Banker article, the banking industry is expected to face a compressed legislative schedule and heightened focus on the 2016 elections, while the effort to move regulatory relief and other key provisions, such as government-sponsored enterprise (“GSE”) reform, in Congress is expected to continue this year.

Regulatory relief remains a top priority for banks in 2016 with several presidential candidates warning about the impact of Dodd-Frank on small institutions, and both parties’ lawmakers continuing to express interest in the issue.

Progressives remain skeptical about many proposed changes to Dodd-Frank, mainly those that would benefit larger firms as well as community banks, according to the article. The compressed schedule means that Congress will have to act quickly to move any bill along with the political climate growing more partisan.

American Banker notes that there will be a harder push for additional changes to the Consumer Financial Protection Bureau's "qualified mortgage" rule, particularly the ability to qualify for safe harbor on loans held in portfolio, and relief from requirements under Basel III. The fight over Dodd-Frank's $50 billion threshold for heightened capital and liquidity rules is also expected to continue.

In terms of GSE reform, American Banker predicts that there is likely to be continued discussion around what to do with the GSEs with a budget deal provision that would prohibit Treasury from selling their share of the GSEs until 2018.

House Representatives John Carney (R-DE), John Delaney (D-MD) and Jim Himes (D-CT) are also working on a bill to establish a mortgage insurance program through Ginnie Mae that would help to provide a government guarantee for MBS with private capital in a first-loss position. Congressman Carney notes that lawmakers are looking into possible pilot programs based on this legislation.


According to a recent article in Business Wire, the recovery in many subsectors of the U.S. CMBS market will bolster efforts to modify legacy commercial loans, but recoveries from “hope notes” are not expected as their structures do not provide sufficient incentive for their borrowers to repay. According to the article, “[h]ope notes divide one loan into an A note, which pays interest, and a B note, which generally accrues interest until a capital event occurs.”

Hope notes reached a peak of $3.5 billion in 2011, followed by $2.7 billion in 2012 and 2013 before volume fell in 2014. According to Fitch, “the dispositions of hope notes take approximately 3.5 years on average from the time the loan transfers to a special servicer to the ultimate disposition date.”


SFIG has a number of Committees and Task Forces meeting and working on many topics of interest to the securitization industry. Please email us for more information, including how to join.

SFIG is pleased to share this edition of its newsletter with our members, as well as our supporters in the structured finance community. To ensure that you receive future editions of the newsletter, please visit our website or email us to learn more about membership opportunities.

Contact Information

Richard Johns Executive Director

Kristi Leo Investor Relations

Sairah Burki Senior Director, ABS Policy

Michael Flood Director, Advocacy

Dan Goodwin Director, Mortgage Policy

Jennifer Wolfe ABS Policy Manager

Mary Robinson Policy Manager

Alyssa Acevedo Senior Analyst, ABS Policy

Amanda Bateman Senior Policy Analyst

Daniel Tees Policy Analyst

Jennifer Serpas Office Manager

Sarah Clarke Events Coordinator

1775 Pennsylvania Ave. NW
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