As we explained in our prior update, one of the programs that EESA required the Treasury to implement was guaranty insurance for troubled assets. The Treasury has since released a request for public comment on a variety of topics, including:

  • Whether the program should offer insurance for individual whole loans and individual mortgage backed securities
  • The appropriate structure for the program
  • Whether the program should offer guarantees of less than 100% of original principal and interest
  • Legal, accounting and regulatory issues of the guarantee program
  • Eligibility provisions of financial institutions

The comment period ends on October 28, 2008. The entire text of the Federal Register Notice can be found online, and public comments may be submitted at the Regulations portal.