The Securities and Exchange Commission (SEC) has published a concept release inviting public comment on potential reforms to disclosure requirements for residential mortgage-backed securities (RMBS) in the registered asset-backed securities (ABS) market. The initiative aims to address longstanding concerns that current rules, particularly those under Item 1125 of Regulation AB, have stifled public issuance of private-label RMBS by imposing overly burdensome asset-level data requirements (including providing protected private information) as well as whether the public disclosure framework of Regulation AB prevents dissemination of important borrower-level information to investors. The SEC is also considering whether to harmonize the definition of “asset-backed security” in Regulation AB with the broader Securities Exchange Act of 1934 (Exchange Act) definition.
For more, check out this Mayer Brown client alert, authored by James J. Antonopoulos, Amanda L. Baker, Julie A. Gillespie, Haukur Gudmundsson, Paul A. Jorissen, Brian L. Kuhl, Michelle M. Stasny, Angela M. Ulum, and Tameem A. Zainulbhai