Fitch: Reg AB Compliance a Tough Hurdle for U.S. RMBS Servicers.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Despite a proactive stance by U.S. RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities servicers to the meet minimum servicing requirements brought on by Regulation AB, achieving compliance will remain a challenge in the first year of the law, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a special report by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Each party in the servicing function is required to provide (by no later than March 31, 2007) both an assessment report on its full compliance with Reg AB, and an attestation report Noun 1. attestation report - a consulting service in which a CPA expresses a conclusion about the reliability of a written statement that is the responsibility of someone else attestation service from a registered public accounting firm to concur with the servicer's compliance. With more parties subject to reporting on previously untested Reg AB servicing criteria, these considerations, if not properly addressed, could cause timing delays and restatement of non-compliant servicer reports, according to Director Thomas Crowe. 'Many servicers are still developing the attestation programs for themselves and other relevant parties, and determining additional reporting requirements,' said Crowe. 'Additionally, many servicers are also still in discussion with accounting and law firms, which are anticipated to play a considerable role in shaping the servicer's interpretation of reporting requirements for Reg AB.' Fitch has already enhanced its RMBS servicer rating criteria to include analysis of each servicer's actions with regard to Reg AB compliance, including contingency plans for possible non-compliance, implementation expense, and possible interruptions related to new reporting compliance. 'Fitch also includes as part of its servicer review an evaluation of the company's procedures to stay informed on current legislation, including the new Reg AB requirements, as well as and its methods and internal control procedures needed to work these changes into its loan servicing processes,' said Senior Director Kathy Tillwitz. 'Impact of Reg AB on US Residential Mortgage Servicers' is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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