SFIG Issues First Edition RMBS 3.0 Green Paper

WASHINGTON, Aug. 6, 2014 /PRNewswire/ -- The Structured Finance Industry Group, Inc. ("SFIG") released the First Edition in a series of papers aimed at restoring confidence to the "private label" residential mortgage-backed securities ("RMBS") market today. These papers, termed "Green Papers," are a product of SFIG's RMBS 3.0 initiative ("RMBS 3.0") —a broad industry supported endeavor designed to develop proposed standards and reduce substantive differences within current market practices. The Green Papers are preliminary documents released with the aim of stimulating further debate and discussion.  Ultimately, these are expected to evolve into a final set of "White Papers," relating both to today's release of Green Papers and to additional agenda items identified for future delivery.

"A strong, effective housing finance market requires a number of well-functioning, deep sources of liquidity.  As an industry we recognize that the current RMBS market—a critical source of financing for the overall industry— needs continued development of best practices in order to grow and fulfil its full potential in supporting the U.S. housing market," said Eric Kaplan, Chair of the RMBS 3.0 Task Force.

Richard Johns, SFIG's Executive Director said, "This project is about an industry recognizing its challenges and working collectively to solve those issues in a way that does not require regulatory mandate.  Since its founding, SFIG has been member-driven and RMBS 3.0 was identified early on as a priority focus for our members.  The efforts from our RMBS 3.0 Task Force are a complement the Treasury's hard work to bring private capital back to the market. I want to extend my thanks to our members and the RMBS 3.0 Task Force for their continued dedication to this project."

RMBS 3.0 was launched following an October 2013 SFIG RMBS roundtable, where representatives from various industry sectors came together to debate issues inhibiting the return of the RMBS market.  Subsequently, SFIG formed its RMBS 3.0 Task Force including individual(s) from over 50 institutional members across all industry sectors. Work-streams are co-chaired by at least one issuer, one investor, and other relevant market participants. 

RMBS 3.0 Seeks To:

• Create standardization where possible, in a manner that reflects widely agreed upon best practices and procedures.
• Clarify differences in alternative standards in a centralized and easily comprehendible manner to improve transparency across RMBS deals.
• Develop new solutions to the challenges that impede the emergence of a sustainable, scalable and fluid post-crisis RMBS market.
• Draft or endorse model contractual provisions, or alternative "benchmark" structural approaches, where appropriate to reflect the foregoing.

The release of SFIG's Second Edition Green Papers is expected in early November 2014, to coincide with the SFIG/IMN's 1st Annual Private Label RMBS Reform Symposium, November 12, New York Marriott Downtown, focused on the revitalization of the PLS market.

SFIG & IMN are proud to present this first of its kind conference, aimed at addressing the major obstacles that remain in the revitalization of a private label RMBS market, as well as potential solutions.

Created in consult with the major institutional buyers of RMBS, this unique forum will allow investors an opportunity to dialogue with key market stakeholders in the following main areas:

                1)  Representations, Warranties and Repurchase Enforcement
                2)  Due Diligence/Loan Review, Data and Disclosure
                3)  Role of Transaction Parties and Bondholder Communications

Leading academics, renowned industry research analysts and economists will be on hand to discuss the broader issues currently plaguing the market, while more intensive board-room style discussions will be hosted, which are designed to find realistic and timely solutions that will allow this market to move forward. Full event details can be viewed here:  www.imn.org/rmbs14

About Structured Finance Industry Group, Inc.

Structured Finance Industry Group, Inc. ("SFIG") is a member-based, trade industry group focused on improving and strengthening the broader structured finance and securitization market. SFIG provides an inclusive network for securitization professionals to collaborate and, as industry leaders, drive necessary changes, be an advocate for the securitization community, share best practices and innovative ideas, and educate industry members through conferences and other programs. Members of SFIG represent all sectors of the securitization market including issuers, investors, financial intermediaries, law firms, accounting firms, technology firms, rating agencies, servicers, and trustees.  Further information can be found at www.sfindustry.org

SOURCE Structured Finance Industry Group, Inc.