On October 30, 2019, SEC Chairman Jay Clayton announced that the SEC will review its RMBS asset-level disclosure requirements with “an eye toward facilitating SEC-registered offerings.” The announcement notes the absence of SEC-registered RMBS securitizations in recent years and seeks input from investors, issuers and other market participants with respect to several questions posed in the announcement, including questions about the RMBS market, the asset-level disclosure requirements for RMBS, and the market practice of providing 5-digit zip codes to investors in non-registered issuances. The announcement follows recent reports that some market participants have approached regulators to seek relief from certain of the disclosure requirements of Regulation AB, which many consider difficult or even impossible to comply with. Chairman Clayton’s announcement signals that the SEC is open to reconsidering the Regulation AB framework as it relates to RMBS. Read the full announcement here.
