Title IX: Asset Securitization

Related Areas:

Financial Services Reform Legislation and Rulemaking

Title I: Regulation of Systemically Significant Companies

Title II: Orderly Liquidation Authority

Title VI: The Volcker Rule

Title X: Consumer Financial Protection Bureau

Title XIV: Mortgage Finance Reform — Ability-to-Repay and Qualified Mortgages

More Information:

For an extensive summary of the Act’s 16 titles, see Dechert’s reports prepared for the American Bankers Association:

Analysis of Financial Regulatory Reform Legislation

Title I Summary

Title II Summary

Title X Summary

Read the Bank D&O Defense Manual for guidance on avoiding, or responding to, an FDIC investigation.

Bank D&O Defense Manual

Title IX of the Dodd-Frank Act provides for a significant restructuring of the securitization process in the United States. Section 942 generally requires that a securitizer retain 5% of the credit risk related to a securitization. Rules proposed by the relevant federal agencies provide for exemptions from risk retention for certain classes of asset backed securities, including those that are composed of qualified residential mortgages. At the same time, the FDIC has been active in addressing the treatment of securitizations by insured depository institutions. In addition, there is increasing interest in legislative action to provide a regulatory structure for the issuance of covered bonds.

Dechert attorneys are focused on helping clients work with regulators as they chart the new rules for securitization and assisting them with developing the most effective ways to make transactions work within the new rules as they emerge.