On August 27, 2014, the SEC adopted revisions to rules governing the disclosure, reporting, and offering process for asset-backed securities (“ABS”). The revisions are intended to enhance transparency, better protect investors, and facilitate capital formation in the securitization market. Among other things, the new rules require loan-level disclosure for certain assets, such as residential and commercial mortgages and automobile loans, and provide more time for investors to review a securitization offering, revise the eligibility criteria for using an expedited offering process known as “shelf offerings,” and make revisions to reporting requirements.
The revised rules become effective 60 days after publication in the Federal Register and issuers must comply no later than one year after the rules are published in the Federal Register. Offerings of ABS backed by residential and commercial mortgages, auto loans, auto leases, and debt securities (including resecuritizations) must comply with the asset-level disclosure requirements no later than two years after the rules are published in the Federal Register.
The draft final rule is available here: http://www.sec.gov/nb/reg-ab-adopting-release-draft.pdf.