Jun 27, 2014 Alert - Treasury Pushes for Revival of Private Label Securities Market
On Thursday, June 27th, Secretary of the Treasury Jacob Lew announced that the Treasury Department will start an initiative to revive the Private Label Securities market (PLS Market) in order to support the recovery of the housing market.

The Treasury Department also announced that it will seek input from interested parties for recommendations to revive the new issue PLS Market. Comments are due on August 8, 2014, and SFIG will be submitting a response through its Residential Mortgage Committee.

SFIG welcomes Secretary Lew’s announcement and commends the Administration for recognizing the importance of the PLS Market.

With over 250 institutional members covering all sectors of the securitization market, SFIG has pioneered industry-participant efforts to deliver an industry-led, industry-owned solution to enable the return of the PLS Markets, through its Project RMBS 3.0. We look forward to continuing to share our progress on this critical industry initiative with the Treasury Department and other policymakers.

About SFIG’s Project RMBS 3.0

With over 400 market participants engaged in SFIG’s Residential Mortgage Committee and approximately 200 market participants having, to date, engaged in over 125 Project RMBS 3.0 meetings covering more than 200 hours, Project RMBS 3.0 is well established and has already achieved some key milestones.

On October 16, 2013, SFIG hosted a PLS Market Roundtable that brought together representatives from across the various industry sectors to confront specific issues stalling the return of issuance and investment. In January of 2014, SFIG launched its Project RMBS 3.0 to have industry participants address key structural issues in the PLS Market.

Project RMBS 3.0 is designed to analyze and, where possible, create solutions to the impediments in the post-crisis RMBS market. The overarching goals for Project RMBS 3.0 are:

Evaluate key areas of concern; and
Create a sustainable, scalable, and fluid post-crisis RMBS market.

Project RMBS 3.0 focuses on three key structural areas hindering the PLS Market:

Representations, Warranties, and Repurchase Enforcement;
Due Diligence, Data, and Disclosure; and
Role of the Trustee and Bondholder Communications.

For details of our full RMBS 3.0 agenda please click here.

As a member-based, trade industry advocacy group focused on improving and strengthening the broader structured finance and securitization market SFIG is uniquely positioned to lead an industry-based and industry-owned solution for PLS revitalization. Members of SFIG represent all sectors of the securitization market including issuers, investors, financial intermediaries, law firms, accounting firms, technology firms, rating agencies, servicers, and trustees.

If you would like to become part of our Project RMBS 3.0 and provide input to our comment letter, please contact Mary.Robinson@sfindustry.org.
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