FDIC Issues Advance Notice of Proposed Rulemaking on Securitization Safe Harbor; Seeks Comments on Securitization Reform


As a follow-up to its announcement at its November 15, 2009 meeting that it would propose additional changes to 12 C.F.R. §360.6 (the “Securitization Rule”) concerning the treatment by the Federal Deposit Insurance Corporation (the “FDIC”), as conservator or receiver, of financial assets transferred in connection with a securitization or participation, the Board of Directors of the FDIC issued, at its December 15, 2009 meeting, an advance notice of proposed rulemaking (the “Notice”) regarding possible amendments to the Securitization Rule.1 The Notice includes a draft of “sample” regulatory text (the “Sample Rule”) that contains a provocative array of possible standards that must be satisfied in order for securitizations issued after March 31, 2010 to qualify for safe harbor treatment under the Securitization Rule. The Notice seeks public comment on such possible securitization standards and poses a number of questions intended to stimulate submission of comments. Further, the Notice underscores that the FDIC is not adopting or recommending the Sample Rule, but only offering it to “provide context” for responses to the questions posed.

The Notice was issued on the heels of the House of Representatives’ December, 11, 2009 passage of the Wall Street Reform and Consumer Protection Act (the “Wall Street Reform Bill”), which includes a number of reforms targeted at asset-backed securitizations, including requirements that loan originators or securitizers retain an economic interest in the credit risk of the underlying loans and increased disclosure obligations for issuers of asset-backed securities.2

Please see full bulletin below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.