Investors Association Tips on Mortgage Securities Reform

The Association of Mortgage Investors has put together a white paper for Congress and regulators as they consider ways to revitalize private sector demand for mortgage asset-backed securities. The association of institutional investors and asset managers offers a set of "guiding principles" that according to a representative are based on lessons learned over the last three years. It includes providing loan-level information investors, rating agencies and regulators can use to evaluate collateral both at pool underwriting and over the life of a securitization; it requires an after securitization "cooling off" period that gives investors time to review and analyze loan-level information; it makes deal documents for all asset-backed securities and structured finance securities publicly available; it directly addresses conflicts of interest between servicers and investors.