April 18, 2019 | Issue 279
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SFIG is Now a Member of ARRC
SFIG has been added as a new member of the Federal Reserve Bank of New York’s
Alternative Reference Rates Committee
(ARRC). SFIG has been serving as a co-chair of the ARRC's Securitization Working Group since March 2018, playing a significant role in industry-led efforts to identify solutions and recommended practices for the capital markets’ transition away from the LIBOR benchmark after its anticipated phase-out in 2021.
This is an incredible opportunity for SFIG and its members to continue to share industry perspectives and potential solutions with regulators and policy-makers regarding the myriad of challenges associated with this very important transition.
If you are interested in joining the SFIG LIBOR Task Force, please contact
[email protected]
.
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SFIG Participates in EY Global Blockchain Summit
On Tuesday, April 16, Sairah Burki, SFIG’s Head of ABS Policy, attended EY’s Global Blockchain Summit and spoke on a panel entitled
Applications of Blockchain in the Securitization Marketplace
. As announced on Thursday, April 4, SFIG launched a Technology and Innovation Committee under which blockchain and its potential uses in the securitization space will be a key workstream. If you would like to join this committee, please contact
[email protected]
.
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FHFA Director Sees Urgent Need for Housing Finance Reform
According to
Bloomberg
, Federal Housing Finance Agency (FHFA) Director Mark Calabria has a “great sense of urgency” in approaching housing finance reform. After being sworn into his position as chief regulator of the government-sponsored enterprises, Mr. Calabria has some latitude to execute administrative reforms and is seen as a key voice in the anticipated White House mandated Treasury Department reform plan as well.
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Kraninger's First Public Remarks on the Bureau
On Wednesday, April 17, the Bipartisan Policy Center hosted CFPB Director Kathy Kraninger for her first public remarks since returning from a three-month listening tour with stakeholders from across the industry. As reported in
American Banker
, she addressed a number of rulemakings and her approach to make the rule-writing process transparent. “I don’t believe anyone benefits from rules that are rushed out the door,” she said.
Specifically, Kraninger said the agency plans to release proposed rules to implement the Fair Debt Collection Practices Act “in the coming weeks” and that she hopes the proposed rules will better address how modern communications are utilized in debt collection activities. She added that the agency will propose that collectors provide consumers with “more and better information at the outset of collection” to help them identify their debts and understand their options.
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GSE Reform Reports Expected in Coming Weeks
On Wednesday, April 17, Andrew Olmem, Deputy Director for the National Economic Council, said that the Treasury Department (UST) and the Department of Housing and Urban Development (HUD) are expected to deliver their reports on housing reform in “weeks, not months.” Once delivered to the White House, the reports will go through NEC Director Larry Kudlow. President Trump signed a
memorandum
on Wednesday, March 27, directing UST and HUD to formulate a mortgage finance reform plan that would end conservatorship of the GSEs and improve regulatory oversight of them.
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Regulators Required to Submit New Rules to White House
Last week, the
Trump administration published
a
memorandum
that would impact how Federal bank regulators and other independent agencies adopt new rules and guidance. The new process would require Federal agencies to submit all their rules to the White House Office of Information and Regulatory Affairs to determine whether they are “major” and subject to the Congressional Review Act. A regulation is considered “major” if it impacts the economy by more than $100 million, results in major increase of consumer costs, or has “significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.” Critics say the White House is overstepping its own authority by attempting to subject independent agencies to a new layer of oversight, according to
American Banker
.
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2019 European ABS Issuance Slow as Incomplete EU Rules go into Effect
At the start of 2019, the
European Union’s new requirements
, known as the
Securitization Regulation
, went into full effect despite many aspects of the rule being incomplete. The new rule was developed as part of the EU’s capital markets union project and seeks to enhance the securities market through five regulatory technical standards (RTS). The unfinished rules have led to a sluggish start to issuances at a time when EU lawmakers seek to revive this crucial source of funding. Some market participants note that asset-backed securities issuance is especially slow this year because the unfinished requirements require issuers and investors “to take a leap of faith,” according to
Risk.net
. Experts believe that final RTS won’t be completed for a few months because of the ongoing Brexit discussions and upcoming EU Parliament elections.
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Q1 2019 Structured Finance Issuance Totals $129bn
Q1 2019 U.S. structured finance
issuance totaled
$129 bn, down 7% percent from $139 bn from Q1 2018, according to
S&P Global
. However, overall lower levels were partially offset by increased RMBS-related issuances which came in at $22 bn, up 24% from $18bn in Q1 2018. ABS issuance came in at $17 bn, down 13% from $69 bn from Q1 2018. CMBS Issuance came in at $17 bn, down 14% from $19 bn from Q1 2018. CLO issuance came in at $29 bn, down 9% from $32 bn in Q1 2018. Despite a slow Q1 2019,
S&P Global
predicts that 2019 will ultimately see higher issuance numbers compared to 2018.
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LIBOR Task Force Call
Wednesday, April 24
4:00-5:00 p.m. EST
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Investor-Only LIBOR Roundtable
Friday, May 3
10:00 a.m.-12:30 p.m. EST
New York and Boston Simultaneous Events
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Attend the Women in Securitization Spring Event
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SFIG’s Women in Securitization (WiS) Steering Committee is hosting its
Spring Event
on
Tuesday, May 14
. Join moderator
Michelle Caruso-Cabrera
, former CNBC Contributor and Chief International Correspondent, as she discusses “
Insights on Advancing Your Career in a Male-Dominated Industry
” with a group of esteemed panelists.
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WiS Spring Event
Tuesday, May 14, 2019
2:30 p.m. - 5:30 p.m. EST
Edison Ballroom
240 W 47th St.
New York, NY 10036
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Discover What's Happening at SFIG Canada 2019
SFIG Canada 2019
May 22-23, 2019
Fairmont Royal York
100 Front Street W
Toronto
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Register for the SFIG Legal Forum 2019
Structured Finance Industry Group (SFIG) is excited to present the
SFIG Legal Forum 2019
, hosted by Mayer Brown LLP, on Tuesday, June 4, from 8:00 a.m. to 5:10 p.m. EST. This event is offered exclusively to SFIG member firms.
Click here to view the agenda
.*
Continuing Legal Education (CLE) credits will be offered to program
attendees of select sessions.
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SFIG Legal Forum
Tuesday, June 4, 2019
Mayer Brown LLP
1221 Avenue of the Americas, 14
th
Floor
New York, NY 10020
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