Asset Securitization: Impact of Regulation AB II, the Credit Risk Retention Rules and the Volcker Rule

Navigating the Complexities of Federal Laws and Rules Governing the Offer and Sale of Asset-Backed Securities

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Tuesday, November 25, 2014

Recorded event now available

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Course Materials

This CLE course will guide finance counsel on how to navigate the complexities of the many new federal laws and rules that govern the offer and sale of asset-backed securities and subsequent periodic reporting. The program will analyze the effects of the newly-finalized Regulation AB II and credit risk retention rules, and the impact of the Volcker Rule on the securitization industry.

Description

Since the credit crisis, the structured finance industry has been living through a time of great regulatory uncertainty, which is starting to abate. The Volcker Rule was finalized in early 2014, Regulation AB II was adopted in late summer 2014, and the credit risk retention rules were finalized last month.

Regulation AB II significantly changes the offering process and many disclosure and reporting requirements for offerings of asset-backed securities most importantly, by imposing a new requirement to provide investors with detailed asset-level data regarding in securitizations of residential mortgages, commercial mortgages, automobile loans and leases, and debt securities, as well as in resecuritizations.

The newly finalized credit risk retention rules generally require retention of five percent of the credit risk in each deal, in one of several prescribed forms. “Qualified residential mortgages” are exempt and defined the same as “qualified mortgage” under the CFPB’s “ability to repay” rules.

The Volcker Rule generally prohibits banking entities from sponsoring or retaining any ownership interest in a “covered fund.” While these rules were primarily intended to deal with vehicles such as private equity funds and hedge funds, their breadth poses many difficult interpretive issues for the structured finance industry.

Listen as our authoritative panel of finance practitioners discusses the complexities of these regulations.

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Outline

  1. Current state of the rebounding asset-backed securities market
  2. Regulation AB II
  3. Credit risk retention
  4. The Volcker Rule and securitizations

Benefits

The panel will review these and other key issues:

  • Impact of the Volcker Rule on structured finance products
  • Impact of the Credit Risk Retention Rules on structured finance products
  • Impact of newly finalized Regulation AB II on structured finance products

Faculty

Reed D. Auerbach
Reed D. Auerbach
Partner
Bingham McCutchen

Mr. Auerbach is recognized as a leading structured finance lawyer, representing a broad range of financial...  |  Read More

Daniel Budofsky
Daniel Budofsky
Partner
Bingham McCutchen

Mr. Budofsky is a partner in Bingham’s Investment Management Practice Group and leader of the firm's...  |  Read More

Charles A. Sweet
Charles A. Sweet
Managing Director/Practice Development Leader, Structured Transactions
Bingham McCutchen

Mr. Sweet regularly advises clients on all aspects of the federal laws and regulations affecting asset-backed...  |  Read More

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