U.S. regulators adopted new rules Thursday that seek to give investors better information before they decide to invest in asset-backed securities, a market that’s still struggling to recover from the financial crisis. One rule, approved by the Securities and Exchange Commission in a 5-0 vote, would give investors a way to scope out the track record of asset-backed security issuers, like Bank of America Corp. Specifically, the rules would let investors see how often the issuers were asked to buy back assets such as those linked to toxic mortgages because they didn’t meet the underwriting criteria laid out in the prospectus. The other rule, approved in a 3-2 vote, would require issuers to conduct a review of the assets underlying the securities and disclose it to investors. The rule would establish a minimum standard of review.
SEC sets asset-backed securities disclosure rules
Most Popular Articles
Latest Articles
William Chang steps down as Pennymac’s capital markets leader
Chang, who joined Pennymac in 2012, will “pursue other interests in the mortgage banking industry” after leaving on Oct. 11.
-
MBA’s Broeksmit says ‘harassment, deception and distrust from trigger leads’ must end
-
Decisions by legislators, homebuilders may have worsened North Carolina’s Helene damage
-
Getting ready for what’s next: lower rates, more refis, more tech
-
Reverse mortgage volume, HMBS issuance show little movement in September
-
Why downsizing is not an easy call for seniors and families to make