The frequency and volume of new securitization regulation being introduced in the US and the EU presents challenges. For issuers and investors, there are hidden dangers – and opportunities – that lie in divergent approaches and extraterritorial effects of the new and emerging rules. In this alert, we provide a guide to the principal EU and US securitization regulatory developments and the challenges and prospects for transatlantic securitization issuers and investors. We also include a helpful summary chart.

Targeted US Residential Mortgage Industry Reform: The US is introducing a series of sweeping regulatory measures designed to specifically address US residential mortgage products, originators, underwriters and servicers. These are designed to improve the quality of US mortgage loans and change the systemic infrastructure of the US residential mortgage industry. These include: