A New Way Forward on Securitizations

For months we have worked with ratings agencies, investors, broker/dealers, servicers and other industry participants to design a new approach to third-party reviews of securitizations that meets today’s market demands.

I’m excited to announce the results of that work today, with the introduction of a complete securitization solution for issuers and underwriters of residential mortgage-backed securities.  We believe this approach will prove vital in restoring investor confidence and bringing our industry back in a responsible manner, and help jump-start securitizations by offering a turn-key solution to meeting new rating agency requirements.

The timing of this announcement in the days leading up to ASF 2010 is no coincidence. As some of the biggest names in the industry prepare to meet outside of Washington, D.C., the issues we address in this re-write of the third-party review process are on the top of people’s minds.

Our new approach incorporates four main elements:

• New requirements of major credit rating agencies
• Scientific sampling methodologies and practices that are documented and incorporated into the system
• Tracking and reporting of loan errors, exceptions and their resolution
• A signed attestation of Allonhill’s review procedures, findings and their disclosure

You can read more about this new approach by checking out the News section of our website. I am eager to hear your feedback, either in the comment section of our blog, via email at [email protected], or in person at ASF.