Structured Finance Association Publishes 2020 Annual Report

The Structured Finance Association (SFA), the leading trade group for the securitization industry, today released its 2020 annual report.

“One year ago, at the start of my second full year as CEO of SFA, I remember the excitement I had of the promise of what 2020 had in store for our organization,” wrote Michael Bright, CEO of the Structured Finance Association. “We had just come off a rebrand, had completely retooled our advocacy and public relations strategies, and in February of 2020, held the largest Vegas conference ever. But, of course, things quickly changed. And even though the events of the year didn’t go as any of us could have possibly anticipated, I’m incredibly encouraged, proud, and frankly moved by the work that we did.”

“In my letter in this report last year, I wrote that our goal for 2020 was ‘to turn SFA into a preeminent trade association in Washington, D.C.’ I have no hesitation in saying that we achieved that goal, as our impact in a historic year is recognized throughout the industry, with policymakers and the general public. This herculean effort is the result of the dedicated SFA staff and our national network of dedicated member companies, organizations that we are so proud to support. This past year showed that working together we can accomplish a great deal, even in trying times. And as Washington begins to write the next chapter of our country’s history, I’m even more eager today for what’s to come for SFA than I was at the start of 2020,” added Bright.

2020 brought new challenges to the globe, underscoring the criticality of educating lawmakers and regulators on the crucial role of securitization. SFA focused on issues essential to maintaining healthy markets and aimed at restoring a vibrant economy. Report highlights are included below. The full report can be found online here.

TALF: Supporting Stability of Our Market Through COVID-19

 “When financial markets froze following the state of emergency declarations and ensuing stay-at-home orders, SFA quickly pulled together the leaders in the industry, Federal Reserve, Treasury and Capitol Hill to collaboratively take immediate steps to restore liquidity and capital flow through the capital markets.”

Tricia Hazelwood, Managing Director, Head of Structured Products, Mitsubishi UFJ Securities (USA), Inc.

 LIBOR Discontinuation: Preparing for the Future

 “SFA has been a skillful market leader in the transition from LIBOR. It has tackled the broad range of issues affecting its diverse membership and is helping to craft effective solutions for the numerous legal, market, operational and policy challenges presented by the unprecedented event of COVID-19.”

Lary Stromfeld, Partner, Cadwalader, Wickersham & Taft LLP

 Expanding ESG Investing in Structured Finance

 “SFA’s work to encourage and support ABS issuers’ incorporation of ESG principles in their origination and issuance programs will advance the adoption of these principles, including impact quantification and transparency across more asset classes within structured products.”

Chrissa Pagitsas, Vice President, Enterprise ESG, Fannie Mae

 Revitalizing and Strengthening Private Residential Mortgage-Backed Securities Market

 “SFA played a vital role in bringing PLS servicer stakeholders together to address the emerging market needs from the COVID-19 pandemic, seeking to resolve issues identified by stakeholders in a way that is attainable and benefits the market.”

 Jon Boswell, Head of Structured Products, Nationwide

 ATR Rule and Industry-Derived Underwriting Standards

 “SFA’s response to the CFPB on the ATR/QM Rule not only balanced the various interests of market stakeholders but charts a viable path forward for a dynamic and innovative process to responsibly provide meaningful access to credit for consumers across the nation.”

Arjun Malhotra, Director of Federal Policy, Rock Central Quicken

 GSE Reform and Credit Risk Transfer

 “The Enterprise Capital Rule represents a meaningful marker in the GSEs exiting their current state of conservatorship. However, if such an exit is undertaken hastily or done prematurely, it risks undoing much of the positive work that has taken place during conservatorship. SFA continuously strives to ensure an orderly transition that builds upon the steps taken and progress achieved.”

Prachi Gokhale, Partner, Structured Finance and Securitization

 Promoting Coordination in the European Market

 “SFA continues to lead the coordination of the American market response to European regulators, clarifying the impact new European securitization regulations will have on U.S. ABS and advocating on their behalf.”

Maria Green, Senior Professional Support Lawyer, Allen & Overy LLP

 Protecting Structured Finance in the Courts

 “The valid-when-made doctrine is a bedrock principle for the securitization market. It facilitates banks’ consumer lending activities by ensuring their ability to securitize and sell assets to non-banks. The OCC rule codifying valid-when-made will reduce market uncertainty and in turn have a positive impact on banks’ ability to support the economy and meet customer needs for credit and other financial services.”

 Jillian Eng, Managing Director and General Counsel for Bank Regulatory Legal, J.P. Morgan Chase & Co.

Giving Back to Our Communities: Structured Finance Foundation

 “This past year was a significant one for the Structured Finance Foundation as we announced four new scholarships in partnership with Mentor Foundation USA for high school seniors, held the first Virtual Fitness Challenge and established a new scholarship fund with the University of the District of Columbia. Our foundation continues to look for ways to make a difference in the lives of students, diversify our fundraising efforts and fulfill our mission of helping those in need build a better future.”

Gregg Silver, Chairman of the Board of Directors, Structured Finance Foundation

 Championing Diversity, Equity and Inclusions

 “I am encouraged by the leadership role SFA is pursuing to racial inequality in our industry. This issue has been and remains one of the passions of my career. We must approach this endeavor not only with commitment, but also humility. This forum affords an opportunity to pursue this very important work — and, of course, working with Val is its own reward!”

 Kevin Chavers, Structured Finance Association Diversity, Equity and Inclusion Co-Chair, Blackrock