🏠SEC Seeks Public Comment on Mortgage-Backed Securities
The SEC is asking for public feedback on how to improve rules governing residential mortgage-backed securities (RMBS) and asset-backed securities (ABS) to revive the market and reduce mortgage costs.
Key Points
- •📅 Deadline Alert: Public comment period is open for 60 days
- •🏠 RMBS Impact: No public RMBS offerings since 2013
- •💰 Consumer Costs: Lower mortgage costs thanks to RMBS
- •🔍 Feedback Needed: SEC wants input on regulatory impediments
- •📄 Disclosure Debate: How to share sensitive mortgage loan info with investors
📢 Call for Comments
The SEC has issued a concept release inviting the public to comment on ways to improve the regulations surrounding residential mortgage-backed securities (RMBS) and asset-backed securities (ABS). Since 2013, there have been no public RMBS offerings, which play a crucial role in the mortgage market by providing diverse liquidity sources and reducing consumer costs.
🤔 What’s the Issue?
The SEC is exploring whether current regulations are hindering public RMBS offerings. They are particularly interested in feedback on disclosure requirements and the sharing of sensitive mortgage loan information, given privacy and confidentiality concerns. The goal is to determine if changes to these rules could revive the RMBS market.
📊 The Bigger Picture
SEC Chairman Paul S. Atkins emphasizes the importance of a healthy RMBS market for reducing mortgage costs and benefiting the U.S. housing sector. By hearing from market participants, the SEC aims to identify steps to revive the public RMBS market and enhance the overall housing market.
“Home ownership has long been the cornerstone of the American Dream. Yet, this dream remains out of reach for too many Americans today due, in part, to mortgage costs.” - SEC Chairman Paul S. Atkins
📝 How to Participate
The concept release outlines various topics and questions for public comment, including potential regulatory revisions and definitions. The SEC encourages comments on costs, burdens, and benefits of possible regulatory changes. The public comment period is open for 60 days following publication in the Federal Register.