As part of its ongoing efforts to better align the interests of participants in the RMBS market and address the issue of risk retention, the Asset Securitization Forum (ASF) has come out with some guidelines relating to the repurchase of RMBS.

The trade group is recommending that pooling and servicing agreements should include a provision for an independent reviewer as an enforcement mechanism for the representations and warranties related to loans. This reviewer should have adequate power to review the loans, including being given access to the loan files, upon the occurrence of a "review event," such as delinquency levels above a certain threshold.

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