One of the most widely discussed ideas at ABS Vegas for boosting issuance of private-label residential mortgage securitization involves hiring a third party to monitor the quality of the collateral.

Redwood Trust, one of the most frequent issuers, has been talking up this kind of role for over a year. In written testimony submitted to the Senate’s Housing, Banking and Urban Affairs Committee in October 2013, Redwood recommended requiring that securitization trusts create the position of a ‘credit risk manager’ to manage representation and warranty claims and monitor servicer performance.

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