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Secondary market

RMBS Fallout: Were Investors Duped?

One positive outcome from the Financial Crisis Inquiry Commission so far is the increased attention to the mortgage due diligence process for residential mortgage-backed securities.

Acts of Greater Courage

Shawn Gravelin, a manager in Allonhill’s credit risk management group, has guest written this blog post.  He and other guest writers will appear in the Allonhill blog from time to time.  His post appears below.

Acts of Greater Courage
By Shawn Gravelin

American Securitization Forum’s New RMBS Rep and Warrant Guidelines

The American Securitization Forum’s Project Restart team released new guidelines for RMBS reps and warranties on December 15. These guidelines are perfectly in line with what the industry needs to adopt.

The suggested reps and warranties address fraud on a level never heard of before. The subordinate investor was always known as the “fraud investor,” and a specific fraud rep was a rare thing.

Not Necessarily Gold In Them Thar' Hills (Could Be Gold Dust)