American Securitization Forum Provides Subprime Guidance

The American Securitization Forum at its annual meeting Wednesday provided subprime lending guidance on issues such as loan modification and urged caution on the possible expansion of mortgage assignee liability in terms of its potential to further restrict credit.In regard to the latter, the ASF stressed that it believes responsibility should be focused on the primary market but it also suggested a national framework to the extent that the secondary market may be further affected. In regard to the former, the forum guidance included opposition to "any across-the-board approach to loan modifications" with the exception of standardization of loan modification language in securitization documents.