Moody’s Analytics recently published commentary analyzing the FDIC’s and OCC’s proposals that aim to fix the legal uncertainty surrounding the “valid-when-made” doctrine. Moody’s report indicates that while the current proposals would not eliminate cash flow uncertainty, they would help reduce it and thus be considered a credit positive. In their 2020 outlook, Moody’s highlighted that the legal risk surrounding “valid-when-made” is one of the biggest political risks for the US structured finance market in the coming year.

Read more via Moody’s.