Securitization and Structured Finance Post Credit Crunch: A Best Practice Deal Lifecycle Guide

3

Looking ahead: What has happened since?

3.1 CURRENT INITIATIVES: AN OVERVIEW

Taking all the weaknesses mentioned in Chapters 1 and 2 into account, the European Securitization Forum (AFME/ESF) as well as the Financial Stability Forum, the Bank for International Settlements (BIS), the European Commission (EC), the International Organization of Securities Commission (IOSCO), the Committee of European Banking Supervisors (CEBS), the Committee of European Securities Regulators (CESR), the European Central Bank (ECB), the Bank of England, European Union national regulators, and the U.S. Securities and Exchange Commission (SEC) have been contributing to a global initiative to restore confidence in the securitization markets.

These recommendations are as follows:

1. Increase and enhance initial and ongoing pool information on U.S. non-agency RMBS and European RMBS into a more easily accessible and more standardized format.

2. Establish core industry-wide market standards of due diligence disclosure and quality assurance practices for RMBS.

3. Strengthen and standardize the representations and warranties as repurchase procedures for RMBS.

4. Develop industry-wide standard norms for RMBS servicing duties and evaluating servicer performance.

5. Expand and improve independent third-party sources of valuations and improve the valuation infrastructure and contribution process for specified types of securitization and structured products.

6. Restore market confidence in credit rating agencies ...