March 16, 2016 Newsletter
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March 16, 2016

Industry Jobs

SFIG Calendar



Advocacy Outlook

Industry News Highlights


This morning, March 16th, Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray testified before the House Financial Services Committee, and provided the CFPB’s annual report to Congress. Important to SFIG members, the following exchange occurred between Congressman Blaine Leutkemeyer (R-MO) and CFPB Director Cordray regarding compliance with TILA-RESPA Integrated Disclosure (“TRID”) during the hearing: 

Congressman Leutkemeyer:  “We have seen concern by the industry who are struggling with the rule.  What do you see from your position as [TRID] enforcer?"

CFPB Director Cordray:  “We are going to be corrective and diagnostic during this open-ended [TRID] implementation period - and not punitive - and it remains open-ended.  We have taken no enforcement actions, and I do not expect to take any corrective actions unless someone is blatantly failing to try to implement the rule.  To the extent that they are making mistakes but trying to get it right, we are attempting to provide more clarification to them, which is something the industry is asking us for.  We also recognize that no one is trying to exploit consumers here, this is just a matter of getting these forms right and getting them correct.”

Congressman Leutkemeyer:  “Are you going to issue additional guidance on this, or do you feel that everybody is doing ok with what is going on?”

CFPB Director Cordray:  “We have been monitoring this very closely. The last thing I want is for any of our rules to cause a jamb-up in the market beyond anything that anyone would intend.  We are getting more guidance inquiries every day. The trade associations are working together to provide some joint questions that they think are most important. We will attempt to be responsive to that, and feel free to keep after us to be responsive to that.”

Congressman Leutkemeyer:  “Oh, we will, trust me.”

On February 4th, SFIG staff and members met with the CFPB to discuss TRID implementation. To view the joint-trades letter to the CFPB regarding TRID compliance, please click here.

To view a recording of the hearing, please click here. For questions about TRID compliance, please contact If you are a mortgage issuer and wish to register for the Residential Mortgage Issuer Committee, please contact


The China Securitization Forum will be holding its annual conference at the China National Convention Center in Beijing from April 7-9. SFIG will be playing a significant role at the conference, participating on panels and sending a delegation from our Chinese Market Committee. In addition, SFIG will be presenting a White Paper to Chinese regulators to educate them on the U.S. securitization landscape. 

If you are interested in learning more about the conference, please click here. If you would like to join SFIG’s Chinese Market Committee, please contact


SFIG currently has open positions for:

  • Advocacy Manager: will be an integral member of SFIG staff, being second-in-command of the association’s Advocacy department. The successful candidate will design and execute advocacy strategies for SFIG’s policy priorities and support the association’s advocacy efforts through development and growth of its political action committee. Additional information on the position, as well as a link to the application, is available here.

  • 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.

  • 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:

Enterprise Sales T-REX 03-04-2016
Associate Director/Director - Structured Finance - Model Management Fitch Ratings 02-29-2016
Credit Quant PeerIQ 02-22-2016
Mid-Level Corporate Trust Associate K&L Gates LLP 02-22-2016
Senior Analyst, Consumer ABS Kroll Bond Rating Agency 02-04-2016
Analyst, Financial Institutions Kroll Bond Rating Agency 02-03-2016
Associate Director, Structured Finance - Toronto Standard & Poor's 01-29-2016
Attorney- Project Finance/Corporates Kroll Bond Rating Agency 01-28-2016

Analyst – CMBS Analytics

Kroll Bond Rating Agency 01-28-2016

Structured Finance Analyst

Assured Guaranty 01-19-2016

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

For questions about positions at SFIG, please contact For questions about the website jobs portal, please contact


THURSDAY, March 17, 2016
2:00 p.m. – 3:00 p.m. (ET)


TUESDAY, March 22, 2016
11:00 a.m. – 12:00 p.m. (ET)

THURSDAY, March 24, 2016
10:00 a.m. – 11:00 a.m. (ET)

WEDNESDAY, March 16, 2016
12:00 p.m. – 5:00 p.m. (ET)
Hogan Lovells LLP
New York, NY
Note: Closed Meeting


THURSDAY, April 7, 2016 - SATURDAY, April 9, 2016
China National Convention Center
No. 7 Tianchen East Road, Chaoyang District
Beijing, China
Online registration will be available soon here.
For more information, please visit IMN's website 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 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.

The committee recently launched its “Best Practices” initiative to establish industry consensus and provide recommendations around one or multiple accepted approaches. The five established Best Practices work streams are 1) Disclosure & Reporting 2) Representations & Warranties 3) Regulatory 4) Operational Considerations and 5) Enforcement.

The committee previously commented on the Treasury Department's Request for Input on Online Marketplace Lending on September 30th.

Members interested in participating should contact

SFIG’s Student Loan Committee recently responded to Fitch’s proposed amendments to FFELP student loan ABS rating methodology. The committee also submitted a response to the Proposed Changes to Moody’s Approach to Rating Securities Backed by FFELP Student Loans this past October.

To join SFIG’s Student Loan Committee and learn more, please contact

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; (3) Role of Transaction Parties; and (4) 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

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.

To join SFIG’s GSE Reform Task Force and learn more, please contact

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 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 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 focused on creating best practices and developing consensus positions around several areas within the Credit Risk Retention final rule.

Please contact 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

The Regulation AB II Task Force has been focused on the disclosure and offering process requirements within the final rule. Asset specific work streams have been formed to develop comment letters on the outstanding proposals within the final rule and the Task Force submitted the first part of its comment letter this past June. SFIG submitted a supplemental comment letter covering credit card and equipment floorplan asset classes on January 12, 2016.  Future discussions across asset class committees and the Regulation AB II Task Force will focus on the remaining outstanding proposed rules, including potentially requiring issuers to provide the same disclosure for Rule 144A offerings as required for registered offerings.

SFIG members who are interested in joining this task force or asset specific committees should contact

The Regulatory Capital and Liquidity Committee recently submitted a response to Basel’s Consultative Document regarding Capital Treatment for STC Securitisations. The committee is also 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”). SFIG recently testified before Congress, focusing on global regulatory issues, including LCR, that affect lending across all asset classes.

To become involved in SFIG’s advocacy on the final LCR or NSFR rules, please contact

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. In October 2015, the prudential regulators approved a Joint Final Rule on Swap Margin Requirements. In November 2015, the CFTC issued their final rule regarding margin requirements for uncleared swaps for swap dealers and major swap participants.

The High Quality Securitization ("HQS”) Task Force recently submitted a response to Basel’s Consultative Document regarding Capital Treatment for STC Securitisations. The task force previously 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. SFIG recently testified before Congress, focusing on global regulatory issues, including HQS, that affect lending across all asset classes.

To join the HQS Task Force, please contact Alyssa.Acevedo@sfindustry.


While Basel III will not be fully in force for another three years, its successor is already looming over the industry. Basel IV, a term some bankers are giving to a group of proposed rules that will increase the capital requirements of Basel III, is expected to have three main elements, according to a recent Financial Times article. The first will focus on an overhaul of the capital treatment of banks’ trading books. The other elements are a more pointed departure from Basel III, focusing on restricting the way risk-weighted assets are calculated.

Industry participants are concerned that such a regime could make banks less sensitive to risk. If there is minimal difference between the capital required for high-risk and low-risk loans, banks might be likely to make more high-risk loans as they will typically carry higher rewards, according to the article. “The solution to this is not having blunt and equally applying instruments,” says a senior executive at a large European bank speaking off the record. “It’s having a more intelligent discussion bank by bank.”

Other banks argue that the Basel Committee’s latest initiatives are unnecessary, given the big changes banks have made following the financial crisis.


According to a press release from the House Financial Services Committee, Chairman Jeb Hensarling (R-TX) will offer “a pro-growth, pro-consumer alternative to the Dodd-Frank Act’s ‘regulatory waterboarding’ that is harming the economy and consumers.” Important to SFIG members, Chairman Hensarling called for “effective capital standards, not government control.” As stated in the press release:

The bold and better alternative you will see from committee Republicans will provide vast regulatory relief for financial institutions in exchange for meeting high, but simple, capital requirements. If financial institutions elect to hold strong Tier 1 capital, then they should gain relief from both Dodd-Frank and Basel’s burdensome regulations, neither of which were meant for community banks and shouldn’t apply to them to begin with.

Chairman Hensarling also advocates the need for measures to hold Washington accountable, which he proposes accomplishing by ensuring every financial regulation passes a rigorous cost-benefit test. According to the Chairman, “The Ranking Democrat on my committee has called cost-benefit tests ‘dangerous.’ But shouldn’t we know the impact a proposed regulation will have on our economy before it gets implemented? Only in Washington is this called ‘dangerous.’ In my hometown and yours, it’s called common sense.”


According to a recent Standard & Poor’s (“S&P”) report, China’s Housing Provident Fund (“HPF”) is using securitization to support economic and financial initiatives. The HPF is a saving program that allows employees and employers to set aside a portion of wages to be used as deposits on home purchases. 

"Six HPF centers issued RMBS or home loan associated rights in 2015," said S&P's credit analyst Jerry Fang. "We expect more HPF-sponsored RMBS to come to market in 2016, thanks to the matched funding that securitization could provide and because authorities have encouraged municipal HPF centers to use securitization to alleviate funding pressure and increase their lending capacity.”


Two regulatory bodies released position papers in January on the relatively new area of “blockchain” technology, as described in an American Banker article.  According to the piece, both reports “supported the technology’s potential for reducing costs, improving security and transparency, and enhancing financial services industry logistics.” What may be most interesting is that while one position paper was published by U.K.’s Government Office for Science, the other publication was issued by Vermont, “a state with a lesser claim to regulatory leadership and located far from any financial center.”

This fact reflects the “sharp divide between the regulatory environments in Europe and the United States” and the article highlights the fact that in the U.K., discussions about the new technology and applications “is entering mainstream public policy circles, whereas in the U.S. the topic is “‘still on the fringes.’”

The different level of attention is partly due to the difference in regulatory structure in the U.S. and abroad. According to the American Banker article:

Overseas, the arrangement of regulators is simpler, with authorities clearly defined, whereas the U.S. structure favors overlapping authorities of many agencies that often breeds inaction. U.K. regulators can truly shape new regulations, whereas the jurisdiction of their U.S. counterparts is unclear.. For example, the recent U.K. report on blockchain explores the possibility of a new form of regulation that would focus on rules governing the technical code behind a blockchain system. Last April, the European Securities and Markets Authority also issued a paper outlining basic questions and asking for industry comment on virtual currency as well as distributed ledger technology. The ESMA is currently evaluating the comments.

A potential problem for U.S. players could be the “notable impact if European regulators address certain critical unresolved issues ahead of the U.S.”  Before moving to the regulation phase, the first step might be to determine whether the technology requires new regulation. As described in the U.K. paper, the Government Office of Science addresses the potential difficulty of regulating a “decentralized ledger that does not have a physical owner.” And from a practical perspective the article also raises the question of “how regulators both in the U.S. and abroad will apply privacy and anti-terrorism laws to blockchain systems.” Furthermore, while “some jurisdictions – such as NY State – have acted to license bitcoin exchanges, nothing of the sort has been proposed for the blockchain itself.”

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

Hua Liu Communications & Social Media Manager

Alyssa Acevedo Senior Analyst, ABS Policy

Amanda Bateman Senior Analyst, MBS Policy

Jennifer Serpas Office Manager

Sarah Clarke Events Coordinator

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