MBS issuers are limiting their Reg AB II liabilities

By Ryan Bolger
30 Sep 2014

Loan level disclosure requirements under the recently finalised Reg AB II rules have encouraged more indemnification provisions to be standardised, meaning MBS issuers will be less prone to standoffs with originators over representations and warranties.

Issuers of public securitizations are now required to file reports with the Securities & Exchange Commission on the quality of collateral backing securitizations.

To protect themselves from liabilities arising from Reg AB II disclosures, MBS issuers have sought more indemnification agreements with mortgage originators, a structured finance lawyer at ...

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