Four years in the making, the Securities and Exchange Commission on Wednesday adopted revised rules governing the disclosure, reporting, and offering process for asset-backed securities. In a separate, but related, action it also finalized several new requirements for credit rating agencies registered with the SEC as nationally recognized statistical rating organizations.
The new asset-backed securities rules require loan-level disclosure for certain assets, such as residential and commercial mortgages and automobile loans. The rules also provide more time for investors to review and consider a securitization offering, alter the eligibility criteria for using an expedited offering process known as “shelf offerings,” and make important revisions to reporting requirements.
