SIFMA Securitization Group

Information Regarding Inclusion of Higher-Balance Loans in TBA-Eligible Securities

Latest Updates:

January 07, 2009
TBA Eligibility for Certain Passthroughs Created through the Reconstitution of REMIC Regular Interests
SIFMA’s MBS and Securitized Products Division Executive Committee has approved a revision to the Good Delivery Guidelines for TBA MBS trading that will be effective for pools issued by Fannie Mae, Freddie Mac, and Ginnie Mae on or after January 28, 2009.  The change to the guidelines will allow for good delivery in TBA trades of certain pools created through the recombination of certain REMIC regular interests, where the cashflows of the recombined passthrough are economically identical to those of the underlying collateral.

A security must meet each of the following criteria to be eligible for good delivery into a TBA transaction:

  • Cash flows on new security must be identical to the cash flows from the original pools (or a pro-rata portion thereof if less than a full REMIC group is recombined);
  • All collateral underlying the original REMIC classes that are being recombined must have been eligible for TBA delivery when that collateral was originated;
  • New passthrough issued through re-REMIC process must be issued without OID;
  • Characteristics of new passthrough issued through re-REMIC process are consistent with other TBA eligibility guidelines (e.g., limited inclusion of non-standard and high-balance loans, final maturity, pools per million on deliveries, etc)
  • Any clean-up calls on underlying collateral must be waived or otherwise eliminated by agencies.

A copy of the guidelines is attached.  A revised version of the guidelines will be published in the Uniform Practices Manual as soon as possible.  Please contact Chris Killian (212-313-1126) with questions or comments.

October 28, 2008
SIFMA and ASF Comments to the Treasury Department Re: Development of a Guarantee Program for Troubled Assets (TARP)

September 18, 2008
ASF and SIFMA Support Comprehensive Review of Securitization Accounting Standards

September 15, 2008
SIFMA’s Market News Portal
SIFMA created a resource page providing information concerning the Lehman bankruptcy issue, AIG and other important information regarding current market events and issues. Please check often for continual updates on current market conditions.

September 7, 2008
SIFMA Statement on Conservatorship

July 28, 2008
SIFMA Announces Formation of U.S. Covered Bonds Traders Committee

May 22, 2008
House Committee on Financial Services Hearing on Conforming Loan Limit Increase and Impact on Homebuyers and Housing Market, Testimony on behalf of SIFMA by Thomas Hamilton, Vice Chairman, MBS and Securitized Products Division, Executive Committee Before the House Committee on Financial Services

Background paper explains the To-Be-Announced (TBA) Market: "Including Jumbos in TBA-Eligible Pools Will Result in Higher Costs for Borrowers" and View Press Release

April 15, 2008
SIFMA and ASF Urge Immediate Action to Ensure Availability of Student Loans

April 9, 2008
SIFMA and ASF Urge Balanced Approach to Subprime Mortgage Finance Regulation; Call for National Mortgage Lending Standard

April 7, 2008
SIFMA submits letter in opposition to Minnesota Subprime Foreclosure Deferment Act

April 2, 2008
SIFMA and ASF submit letter to Fed regarding SLABS eligibility for TSLF
SIFMA and the ASF submitted a letter to the Federal Reserve Board and the FRBNY requesting that the definition of program-eligible collateral (which currently includes RMBS and CMBS among other collateral) for the Term Securities Lending Facility (TSLF) be expanded to include triple-A rated FFELP and private student loan asset-backed securities. Additional information regarding the TSLF may be found here. Please contact Sean Davy or Chris Killian with questions or comment.

Register Now for the 2008 MBS Due Diligence Conference June 24 at the Marriott Marquis, NY, NY

March 20, 2008
SIFMA Publishes Revisions to Good Delivery Guidelines, Settlement Recommendation for Jumbo-Conforming Pools

March 17, 2008
ASF and SIFMA Oppose Minnesota Subprime Foreclosure Deferment Act

February 15, 2008
SIFMA to Update MBS TBA Good Delivery Guidelines To Reflect its Decision to Keep Maximum TBA Eligible Loan Limits at Pre-Existing Levels

January 8, 2008
SIFMA Projects Fixed Income Issuance Decline of 15 Percent in 2008, to $3.4 Trillion Performance Forecast to Improve in Second Half

Capital Markets Review September 2007
SIFMA letter to policymakers explaining recent market volatility and providing background data.View Document

Industry Associations Release Provider-Distributor Principles on Retail Structured Products
Five leading trade associations jointly released a set of non-binding principles relating to retail structured products (the ‘RSP Principles’). They focus particularly on the management of the relationship between providers and distributors, from the perspectives of firms performing either function.

SIFMA Standardized Format for CDO Data Files Adopted by LaSalle Bank
The format increases the efficiency and usefulness of the reports to CDO investors.

ESF, ICMA, ISDA, LIBA, SIFMA Release Draft set of Principles Relating to Retail Structured Products
The trade associations jointly released a draft set of non-binding principles relating to retail structured products which focus on the management of the relationship between providers and distributors, from the perspectives of both type of entity.

ASF, SIFMA Testify On Issues Related to the Subprime Mortgage Market
In remarks before the House Committee on Financial Services, George P. Miller, Executive Director of the ASF, stressed the importance of ensuring that any legislative response to recent issues in the subprime mortgage market does not restrict the availability of credit to deserving borrowers.

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Staff Contact:
Chris Killian

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