The goal of the QM VSH Scope of Review is to create a uniform best practice testing standard to be utilized across TPR firms. The primary focus of this initial version of SFA’s TPR Scope of Review for QM VSH is to document the best practice approaches used by clients utilizing a TPR firm to perform due diligence on General QM loans under the new rule effective March 1, 2021.. As appropriate, SFA and its members will continue to work with the CFPB toward the goal of receiving formal regulatory guidance for the benefit of the consumer, primary, and secondary mortgage markets. To that end, there may be shifts in the requirements should there be future CFPB rulemakings or formal guidance, or market developments.

SFA President, Kristi Leo, recently joined Patrick Dolan, Partner at Norton Rose Fulbright, for an episode of Securitization Insight Podcast to discuss the latest on the LIBOR transition from federal legislation for legacy contracts to the use of Term SOFR.

On November 2, SFA CEO Michael Bright testified before the Senate Banking Committee at a hearing entitled, "The Libor Transition: Protecting Consumers and Investors." Bright testified that "the cessation of LIBOR has been an enormous challenge overhanging the capital markets since 2017," and "while small compared to the overall size of outstanding LIBOR contracts, $16 trillion [in tough legacy contracts] is still a large sum, posing a serious risk to the financial system."

On November 2, SFA CEO Michael Bright testified before the Senate Banking Committee at a hearing entitled, "The Libor Transition: Protecting Consumers and Investors." Bright testified that "the cessation of LIBOR has been an enormous challenge overhanging the capital markets since 2017," and "while small compared to the overall size of outstanding LIBOR contracts, $16 trillion [in tough legacy contracts] is still a large sum, posing a serious risk to the financial system."

As the broader shipping industry continues to be buffeted by supply chain complexities, container lease ABS have been buoyed by the rebound in global trade as demand for shipping containers has kept lease rates at all-time highs.

New-issue activity in September reached $92 billion, the strongest month of issuance for non-agency RMBS, CMBS, ABS and CLOs, to date in 2021. Another $23 billion issued in the first two weeks of October helped volume reach $710 billion, surpassing in under 10 months the level reached for the entire year of 2019

Registered attendees of SFVegas 2021 can now access recordings of the conference and panel sessions via the Virtual AttendeeHub. Enter the first name, last name, and email address that was used when registering, and a code will be sent to the mobile device and email address to be used to log in.

SFA is forming a task force for all interested members to discuss and ultimately establish a strategic response to SEC Rule 15c2-11. This rule regulates the publication of quotations in OTC markets and requires dealers to obtain and review issuer information prior to publishing quotations for the securities.

This week, industry participants met in-person and virtually during SFVegas 2021, hosted by the Structured Finance Association. With over 2,200 in-person attendees and thousands participating virtually, the hybrid event featured world-class speakers covering topics like ESG, policy matters impacting structured finance, the LIBOR transition and alternative reference rates, consumer credit performance during the pandemic, political and macroeconomic outlooks, DEI, and how securitization can support financial inclusion.

On Friday, October 1, SFA submitted a response to The European Commission’s (EC) Targeted Consultation on the Functioning of the EU Securitisation Framework.