Redwood Outlines MBS Structural Changes That Would Improve Pending Risk-Retention Rule on Securitization
May 27, 2011
Federal regulators should adopt a fair value method for measuring an MBS sponsors retained interest in non-agency transactions and make subtle changes in the proposed premium capture provisions in order to provide a framework thats feasible for issuers, according to Redwood Trust officials. In a briefing with the Federal Housing Finance Agency, the company explained several key changes to the proposed inter-agency rule on risk retention as it would affect non-agency MBS. Redwood, the only company that has issued non-agency MBS backed by newly originated mortgages over the past few years, was joined by officials from Wells Fargo, which had been one of the most...