November 10, 2015 Alert - SFIG Releases RMBS 3.0 Third Edition Green Papers

SFIG is pleased to announce the release of the Third Edition Green Papers. This release substantially builds upon our growing series of Green Papers, which are aimed at restoring confidence to the “private label” residential mortgage-backed securities (“RMBS”) market.

The papers are a product of SFIG’s RMBS 3.0 initiative (“RMBS 3.0”) and expand upon the First and Second Editions, released in 2014. Included in the Third Edition is:

  • The addition of 39 model Representations and Warranties, including a range of proposed standardized constructs. This release completes the full framework of 47 representations and warranties.
  • A Transaction Parties Roles and Functions Matrix, designed to provide clarity as to the roles and responsibilities of transaction parties, including a Deal Agent.

RMBS 3.0 is a broad industry supported endeavor designed to develop proposed standards and reduce substantive differences within current market practices. The Green Papers are preliminary documents released with the aim of stimulating further debate and discussion. The initiative was launched in October 2013, and brings representatives from various industry sectors together to identify, debate and develop solutions to the issues inhibiting the return of the RMBS market. The RMBS 3.0 Task Force includes individuals from over 50 institutional members across all industry sectors. Work-streams are co-chaired by at least one investor, one issuer, and other relevant market participants. 

RMBS 3.0 Seeks To:

  • Create standardization where possible, in a manner that reflects widely agreed upon best practices and procedures
  • Clarify differences in alternative standards in a centralized and easily comprehendible manner to improve transparency across RMBS deals
  • Develop new solutions to the challenges that impede the emergence of a sustainable, scalable and fluid post-crisis RMBS market
  • Draft or endorse model contractual provisions, or alternative “benchmark” structural approaches, where appropriate to reflect the foregoing

The release of SFIG’s Third Edition Green Papers coincides with SFIG & IMN’s Private Label RMBS Reform Symposium, November 12th at the New York Marriott Downtown. SFIG & IMN are once again looking forward to bringing together investors, issuers, and other industry participants to continue addressing the major obstacles inhibiting revitalization of a private label RMBS market, as well as the potential solutions presented in the Third Edition Green Papers.

Representative Scott Garrett (R-NJ), will be the keynote speaker. For more than 20 years, Congressman Garrett has been at the forefront of public policy deliberations dealing with issues related to the financial services industry, developing considerable expertise in areas ranging from securities and finance to insurance and regulatory oversight.

The Symposium will be attended by investors, issuers, servicers, trustees and other market participants, leading academics, government officials, renowned industry research analysts and economists to discuss initiatives and how to move the PLS market forward. More information on the RMBS Reform Symposium is located here.

SFIG encourages interested members to join the RMBS 3.0 Task Force and contribute to the ongoing dialogue surrounding the updates and new topics released in today’s Green Papers, as well as future subject areas. To learn more about RMBS 3.0 and join the Task Force, please contact Amanda.Bateman@sfindustry.org.

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