Featured Product

    FDIC Removes Disclosure Requirement in Securitization Safe Harbor Rule

    March 04, 2020

    FDIC is amending the Securitization Safe Harbor Rule, which relates to the treatment of financial assets transferred in connection with a securitization transaction. FDIC is revising the rule by removing a disclosure requirement that was established by the Securitization Safe Harbor Rule when it was amended and restated in 2010. As amended, disclosure is required under § 360.6(b)(2)(i)(A) only in the case of an issuance of obligations that is subject to Regulation AB. The final rule will be effective from May 04, 2020.

    The amendment is intended to eliminate a requirement that the securitization documents require compliance with Regulation AB of the SEC in circumstances where Regulation AB by its terms would not apply to the issuance of obligations backed by such financial assets. The policy objective of this final rule is to remove an unnecessary barrier to securitization transactions, particularly the securitization of residential mortgages, without adverse effects on the safety and soundness of insured depository institutions. The Securitization Safe Harbor Rule addresses circumstances that may arise if FDIC is appointed receiver or conservator for an insured depository institution that has sponsored one or more securitization transactions. FDIC is removing the requirement of the Securitization Safe Harbor Rule that the documents governing a securitization transaction require compliance with Regulation AB of the SEC in circumstances where Regulation AB is not applicable to the transaction under the terms of the regulation. 

    Regulation AB imposes significant asset-level disclosure requirements in connection with registered securitization issuances. While SEC has not applied the Regulation AB disclosure requirements to private placement transactions, the Securitization Safe Harbor Rule has required (except for certain grandfathered transactions) that these disclosures be required as a condition for eligibility for benefits of the Securitization Safe Harbor Rule. The net effect appears to have been a disincentive for insured depository institutions to sponsor securitizations of residential mortgages that are compliant with the rule.

    FDIC had proposed these amendments on August 22, 2019, with the comment period of the proposed rule ending on October 21, 2019. FDIC received ten comment letters—five from trade organizations, one from an insured depository institution, two from individuals, one from a financial reform advocacy group, and one from a financial market public interest group. FDIC considered all of the comments it received when developing the final rule. The final rule, however, remains unchanged from the proposed rule.

     

    Related Link: Final Rule

    Effective Date: May 04, 2020

    Keywords: Americas, US, Banking, Securities, Securitization, Disclosures, Securitization Safe Harbor Rule, Regulation AB, SEC, FDIC

    Related Articles
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    News

    ECB Amends Decision on TLTRO III

    ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.

    May 05, 2021 WebPage Regulatory News
    News

    Central Bank of Ireland Issues Draft Template for AnaCredit Reporting

    The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.

    May 05, 2021 WebPage Regulatory News
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6936