SEC Opens Public Comment Period on Rules for Residential Mortgage‑Backed Securities

USA: SEC Opens Public Comment Period on Rules for Residential Mortgage‑Backed Securities

A concept release issued by the U.S. Securities and Exchange Commission invites stakeholders to comment on potential revisions to regulations governing residential mortgage‑backed securities (RMBS) and certain asset‑backed securities (ABS). The SEC seeks input on whether existing disclosure requirements or regulatory definitions may be hindering the re‑emergence of public RMBS offerings, which have not occurred since 2013. Comments are accepted for 60 days following the release’s publication in the Federal Register.

Background on the RMBS Market

Public RMBS offerings have been absent for over a decade, yet the SEC notes that these instruments can broaden access for issuers and investors, diversify liquidity sources, and potentially lower borrowing costs for consumers.

Regulatory Concerns Highlighted

The release asks whether current SEC rules create impediments, including the adequacy of disclosure obligations and the handling of sensitive loan‑level data in light of privacy considerations. It also queries whether revisions to broader ABS regulations could facilitate market participation.

Public Comment Process

Interested parties may submit written responses through the SEC’s online portal. The agency emphasizes that feedback on costs, burdens, benefits, and alternative regulatory approaches will inform any future rulemaking.

Potential Impact on Housing Costs

SEC Chairman Paul S. Atkins remarked that a vibrant public RMBS market could help reduce mortgage expenses and support the broader U.S. housing sector, aligning with broader affordability goals.

Next Steps for the SEC

Following the comment period, the Commission will evaluate the submissions and determine whether to propose formal rule changes. The concept release remains accessible via the SEC’s website, alongside a fact sheet summarizing key points.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.