George Miller, executive director of the American Securitization Forum, today made the following statement responding to the proposed amendments from the Financial Accounting Standards Board:
We are reviewing proposed revisions to FAS 140 and FIN 46(R) released yesterday by the Financial Accounting Standards Board (FASB). Transparent, relevant and operational accounting standards governing transfers of financial assets and consolidation of special purpose entities are critically important to the quality, accuracy and utility of financial reporting for securitization transactions. In turn, securitization is a widely-used financing technique that has historically provided funding for a wide range of consumer and business credit needs. Especially in today's severely constrained credit and liquidity environment, it is essential to restore the function and efficiency of the securitization markets.