RMBS Improvement Seen as Global Priority

Improving the disclosure of information on underlying assets for residential mortgage-backed securities has been identified among four priorities for immediate action by a group of securitization organizations that met Tuesday in New York to discuss and coordinate global efforts to restore market confidence. The Global Joint Initiative to Restore Securitization Markets said its other immediate priorities are to enhance transparency with regard to underwriting and origination practices, restore the creditability of credit rating agencies and improve confidence in valuations, methodologies and assumptions. The Securities Industry Financial Markets Association, the American Securitization Forum, the European Securitisation Forum and ASF-Australia set the four immediate priorities and also set eight other recommendations for restoring confidence in the securitization markets in line with their ongoing efforts to this end. Half of the other recommendations center on RMBS market improvements and standards. Specifically, the groups called for better RMBS issuer information, due diligence/quality assurance, representations and warranties, and servicing.