September 1, 2016 Newsletter
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September 1, 2016
 
 
SFIG News

Industry Jobs

SFIG Calendar

Meetings

Events

Advocacy Outlook

Industry News Highlights

 
SFIG NEWS
WiS MIAMI: WE'RE BRINGING THE OUTDOORS INSIDE!

Due to concerns regarding the Zika virus, the WiS Miami Regatta will now be held indoors in Eden Roc’s Ocean Tower Ballroom II. Join us for an afternoon of racing, games, and networking with fellow industry members! Women and men are welcome at this fun-filled event, where there will be:

  • An exciting opportunity to participate in a race event
  • Lawn games including bean bag toss and ladder ball
  • A make-your-own mojito bar
  • And more!

The leadership of WiS will share highlights of the initiative’s educational programs and events, and provide a preview of our 2017 agenda. Attendees will have the opportunity to sign up for our Mentoring Program and learn about the new Career Sponsor Program - our first initiative where men (and women) in securitization may take an active role in advocating for women in their organizations.

SUNDAY, September 18, 2016
3:00 p.m. - 5:00 p.m. (ET)
Eden Roc Hotel, Ocean Tower Ballroom II
Miami Beach, FL

To register for this event, please click here.

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DON’T FORGET TO REGISTER - SFIG’S SUNDAY ADVOCACY TRACK AGENDA AT ABS EAST!

Join SFIG at ABS East, where we will be hosting a series of updates on some of the most current and pressing advocacy issues facing the securitization market and how the industry is responding on Sunday, September 18th from 12:30 p.m. – 4:30 p.m., Track C.

SUNDAY, September 18, 2016
Track C

12:30pm – 1:15pm:
RMBS 3.0 – Returning Private Capital to the Mortgage Market
Daniel Goodwin & Eric Kaplan

1:15pm – 2:00pm: Marketplace Lending
Jennifer Wolfe & William Black

2:15pm – 3:00pm:
Q4 2016 SFIG Investor Agenda and 2017 agenda
Kristi Leo & SFIG Investor Cabinet

3:00pm – 3:45pm:
Investor Liquidity Review – The Path Forward
Kristi Leo & SFIG Investor Cabinet

3:45pm – 4:30pm: Reg AB/Disclosure
Alyssa Acevedo & Charles Sweet

Please note these sessions require advance registration, please email Melissa Igbineweka at melissa.igbineweka@imn.org.

Please be advised that these sessions are closed to press.

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INDUSTRY JOBS

SFIG Positions

Are you or someone you know eager to join a supportive, hard-working and fun nonprofit team doing incredible work? Good news, SFIG has several openings! Please see the below job opportunities and help us spread the word by passing them along to anyone who might be a good fit:

  • Director of Education: will be responsible for the strategic development and execution of a comprehensive and robust in-person and online education and member development program.
  • RMBS/CMBS Policy Manager: will contribute to the design of, and help execute group-wide strategy efforts and initiatives in support of SFIG’s mortgage policy priorities.
  • Manager of Advocacy: will design and execute advocacy strategies, engage with Capitol Hill and federal regulatory agencies as well as support SFIG’s advocacy efforts through development and growth of its political action committee.
  • Policy Analyst: will support general policy initiatives and investor relations through direct member engagement, meeting facilitation, research and analysis.

You can also follow our Twitter @SFIndustryG at https://twitter.com/SFIndustryG to stay updated on all SFIG job opportunities.


Industry Positions

Some of the latest industry positions available include:

JOB TITLE COMPANY POSTING DATE
Analyst/Associate Director - Asset Backed Securities Fitch Ratings 07-15-2016
Director/Senior Director - Asset Manager Leader Fitch Ratings 05-03-2016
Director/Senior Director - Research and Criteria Leader Fitch Ratings 05-03-2016

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

Current members are encouraged to advertise open positions within their company on SFIG's website by filling out the form here.

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

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SFIG CALENDAR
MEETINGS
BIWEEKLY RISK RETENTION INDUSTRY GUIDE WORKING GROUP CALL

TUESDAY, September 6, 2016
11:00 a.m. – 12:00 p.m. (ET)

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BIWEEKLY AUTO ISSUER COMMITTEE CALL

WEDNESDAY, September 7, 2016
2:00 p.m. - 3:00 p.m. (ET)

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MARKETPLACE LENDING WEEKLY CALL: DISCLOSURE & REPORTING WORK STREAM

WEDNESDAY, September 7, 2016
4:00 p.m. – 5:00 p.m. (ET)

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EQUIPMENT ISSUER COMMITTEE CALL

MONDAY, September 12, 2016
2:00 p.m. – 3:00 p.m. (ET)

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MONTHLY RESIDENTIAL MORTGAGE ISSUER SUBCOMMITTEE CALL

MONDAY, September 12, 2016
2:00 p.m. – 3:00 p.m. (ET)

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SFIG BOARD OF DIRECTORS MEETING

THURSDAY, September 29, 2016
12:00 p.m. – 5:00 p.m. (ET)
Katten Muchin Rosen LLP
New York, NY
Note: Closed Meeting

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EVENTS
WiS MIAMI REGATTA AT ABS EAST 2016

SUNDAY, September 18, 2016
3:00 p.m. – 5:00 p.m. (ET)
Eden Roc Hotel, Ocean Tower Ballroom II
Miami Beach, FL
Registration available here.

Note: For more information about the Zika virus in Miami, please check the IMN update here.

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SFIG SUNDAY ADVOCACY TRACK AT ABS EAST 2016

SUNDAY, September 18, 2016
12:30 p.m. – 4:30 p.m. (ET)

Please note special sessions require advanced attendance which may be confirmed with Melissa Igbineweka at melissa.igbineweka@imn.org.

These sessions are closed to the press.

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IMN’s ABS EAST 2016 CONFERENCE

SUNDAY, September 18, 2016 – TUESDAY, September 20, 2016
The Fontainebleau
Miami Beach, FL
Registration available here.

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SFIG VEGAS 2017 CONFERENCE

SUNDAY, February 26, 2017 - WEDNESDAY, March 1, 2017
Aria Resort & Casino
Las Vegas, NV
Registration available here.

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ADVOCACY OUTLOOK

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.

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) Data & 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 30, 2015.

SFIG’s Student Loan Committee responded to Fitch’s proposed amendments to FFELP student loan ABS rating methodology earlier this year. The committee also submitted a response to the Proposed Changes to Moody’s Approach to Rating Securities Backed by FFELP Student Loans in October 2015.

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; 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 Marshall.Bornemann@sfindustry.org.

In response to a request for public comment issued by FHFA on the GSEs’ credit risk transfer processes, SFIG, through its GSE Reform Task Force, convened a call on July 7th to gauge membership’s interest. The task force is currently working on a response to be submitted no later than October 13, 2016.

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

The Mortgage Loan Level Disclosure Task Force will soon begin its review of the Mortgage Industry Standards Maintenance Organization’s (MISMO) work to map the data elements that lenders should deliver in securitizations per the recent Regulation AB II release of Schedule AL. The requirements will come into effect in November 2016, and SFIG has participated in weekly conference calls with MISMO for the last 18 months in an effort to standardize disclosure by that time. SFIG encourages subject-matter experts from member organizations to participate in its review—which will be conducted jointly by this task force and the RMBS 3.0 Due Diligence, Data and Disclosure Working Group—so the work can be adopted as an industry-wide standard.

Members interested in participating should contact Marshall.Bornemann@sfindustry.org.

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 Alyssa.Acevedo@sfindustry.org to participate on the Task Force.

The Risk Retention Industry Guide Working Group 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 Alyssa.Acevedo@sfindustry.org with any questions.

SFIG’s Chinese Market Committee completed their White Paper, A Comprehensive Guide to U.S. Securitization, in April for Chinese regulators and the Chinese Securitization Forum to educate them on the U.S. securitization landscape. The committee also continues to hold discussions with a focus on SFIG’s partnership with the CSF, 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.

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 in June of 2015. SFIG submitted a supplemental comment letter covering credit card and equipment floorplan asset classes on January 12, 2016 and another supplemental comment letter regarding asset-level information for student loans on June 15, 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 Alyssa.Acevedo@sfindustry.org

The Regulatory Capital and Liquidity Committee recently submitted a response to the U.S. proposed net stable funding ratio (NSFR) requirements. The committee also recently submitted comments to the Federal Reserve Board’s (FRB) proposal regarding Single-Counterparty Credit Limits, and before that, submitted a response to Basel’s Consultative Document regarding Capital Treatment for STC Securitisations. The committee will be addressing industry concerns related to the FRB’s Final Rule on the Liquidity Coverage Ratio (LCR). SFIG testified before Congress in February 2016, 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 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. 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 submitted a response to Basel’s Consultative Document regarding Capital Treatment for STC Securitisations in February 2016. 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 testified before Congress in February 2016, focusing on global regulatory issues, including HQS, which affect lending across all asset classes.

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

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INDUSTRY NEWS HIGHLIGHTS
YELLEN NOTES STRONGER CASE FOR RATE HIKE

During a recent speech, Federal Reserve Board (FRB) Chairwoman Janet Yellen noted that the case to raise interest rates has strengthened in recent months, according to a recent Bloomberg article.

n light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen stated.

Yellen also noted that the economy is “nearing” the FRB’s goals of full employment and stable prices, but did not give an indication of when the U.S. might hike rates. The FRB has policy meetings scheduled in September, November, and December.

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POLICYMAKERS MUST ADDRESS EXCESSIVE REGULATIONS IN RMBS MARKET

Excessive regulations combined with low interest rates are reducing liquidity in the real economy, according to a Kroll Bond Rating Agency report, as reported in an article by National Mortgage News.

The Kroll Bond Rating Agency “identified a number of factors that could seriously be contributing to a liquidity crisis,” adding “without relief in terms of higher interest rates and meaningful regulatory reform, smaller nonbank seller/servicers operating in the U.S. mortgage market could fail.”Regulatory agencies, namely the Consumer Financial Protection Bureau and Federal Housing Finance Agency, have harmed the residential mortgage backed securities market by decreasing liquidity.

If you would like to join SFIG's RMBS 3.0 Committee, please contact Marshall.Bornemann@sfindustry.org.

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REP. MALONEY RAISES QUESTIONS ABOUT VOLCKER RULE

On Monday, August 29th, Rep. Carolyn Maloney (D-NY), the Ranking Member on the Capital Markets and Government Sponsored Enterprises Subcommittee, sent a letter to the Federal Reserve, Securities and Exchange Commission, Federal Deposit Insurance Corp., the U.S. Commodity Futures Trading Commission and the Office of the Comptroller of the Currency (collectively, the agencies), with regard to the ongoing implementation of the Volcker Rule.

In her letter, Ms. Maloney requested information about certain quantitative trading metrics that the agencies had been collecting.

“The agencies currently have nearly two years of quantitative trading data, spanning periods both before and after the effective date of the proprietary trading ban,” Ms. Maloney stated, believing that these metrics “can provide important information not only about the efficacy of the Volcker Rule, but also about the general trading activities of U.S. banks, and the degree to which these trading activities have changed over the past two years.”

According to a recent New York Times article, this data could help inform the debate over the rule’s impact and other broader discussions regarding post-crisis regulation and its influence on the financial system.

If you would like to join SFIG’s Volcker Task Force, please contact Alyssa.Acevedo@sfindustry.org.

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MAJORITY OF GLOBAL EXCHANGES TESTING BLOCKCHAIN TECHONOLOGY

The majority of global financial exchanges are actively exploring applications of distributed ledger-technology, according to a recent CoinDesk article

Twenty-four firms, consisting of exchanges, central securities depositions, and central counterparties took part in a recent World Federation of Exchanges survey regarding how market incumbents are exploring the technology and developing proof-of-concepts, according to CoinDesk.

The survey highlights how these firms “..are focusing on applications which aim to create process efficiencies and cost savings, though some are also pursuing new service lines and revenue opportunities.”

If you would like to join SFIG’s Blockchain Task Force, please contact Alyssa.Acevedo@sfindustry.org.

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NEW UTILITY SETTLEMENT COIN TO RUN ON BLOCKCHAIN TECHONOLOGY

Last week, four major banks announced that they are collaborating, along with ICAP, a UK-based voice and electronic dealer broker, in order to produce a “utility settlement coin” (USC) that is run on blockchain technology, according to a recent Bank Innovation article.

The USC aims to help banks process financial transactions without intermediaries, leading to an industry savings between $65 and $80 million, says Bank Innovation.

The USC is a purely digital coin, which will be run on a blockchain. However, according to sources at ICAP, the USC should not be classified as a “bankcoin”, but should really be thought of as an asset-backed digital security, one which will behave exactly like its partnered fiat currency.

While this development indicates significant traction for the use of digital assets, others in the blockchain industry have suggested that the USC could lead to a more fragmented currency landscape.

If USC is implemented on schedule and runs according to the current model, Bank Innovation states that this will be the first online security of its kind to launch and be backed by banks.

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MORTGAGE RATES REMAIN STEADY, MIRRORING CAUTIOUS MARKETS

According to an article in National Mortgage News, mortgage rates have stayed below 3.5% for nine consecutive weeks, while treasury yields changed little compared to a week ago. The article cites Sean Beckitti, Freddie Mac’s chief economist, who states, “Markets are erring on the side of caution ahead of the second estimate for second-quarter GDP and Fed Chair Janet Yellen’s speech,” which was held in Jackson Hole, Wyoming on Friday. Click here to view Chairwoman Yellen’s speech on interest rates.

If you would like to join SFIG's RMBS 3.0 Committee, please contact Marshall.Bornemann@sfindustry.org.

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FSB: U.S., JAPAN AND CANADA ONLY COUNTRIES TO MEET DERIVATIVES RULES DEADLINE

On Friday, August 26th, the Financial Stability Board (“FSB”) released a paper indicating that the U.S., Japan and Canada will have been the only nations to meet the FSB’s September 1st deadline for countries to enact a new set of collateral rules for derivatives. According to the FSB, this disparity in rules risks creating instability in the $493 trillion international derivatives market, as firms operating internationally must comply with varying sets of standards. In its paper, the FSB urges jurisdictions to “urgently” take steps to adopt the new set of rules. Following a review of 24 countries’ regulatory standards for over-the-counter derivatives, the FSB estimates that approximately half will have met a second upcoming March deadline.

An article in Bloomberg reports that the new rules could eventually require that more than $791 billion in liquid assets be held as collateral in derivatives deals. 

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SFIG COMMITTEES AND TASK FORCES

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

Dan Goodwin Director, Mortgage Policy

Tom McCrocklin Director, Advocacy

Jennifer Wolfe Manager, ABS Policy

Hua Liu Communications & Social Media Manager

Alyssa Acevedo Senior Analyst, ABS Policy

Marshall Bornemann, Policy Analyst

Robert Robilliard, Data and Policy Analyst

Jennifer Serpas Office Manager

Sarah Clarke Events Coordinator

Dani Hernandez Executive Administration

1775 Pennsylvania Ave. NW
Suite 625
Washington, DC 20006

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