News | 10.31.19
SEC Considers Relaxing Post-Crisis Structured Mortgage Product Rules
The SEC on Wednesday said it was seeking feedback on whether disclosure rules were discouraging firms from issuing SEC-registered residential mortgage-backed securities (RMBS). The move, which follows five years of limited activity in the SEC-registered RMBS market, could result in the SEC loosening disclosure requirements introduced in the wake of the 2007-2009 subprime mortgage crisis. With the future privatization of Frannie Mae and Freddie Mac, the RMBS market will likely shrink and decrease funding available for home loans without changes. The review was recommended by the Treasury Department in its blueprint published last month for removing mortgage giants Fannie Mae and Freddie Mac from government control.
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