The Federal Deposit Insurance Corp. (FDIC) will be having a board meeting on Monday to discuss the final Safe Harbor rules.
The FDIC is expected to extend its interim Safe Harbor for securitization at the Monday board meeting. The current safe harbor rule is scheduled to expire on Sept 30.
The American Securitization Forum ealier said that the FDIC is expected to approve final Safe Harbor rules that will go into effect at the end of the interim Safe Harbor period. The trade group also previously noted that the new rules will shed light on how the FDIC plans to reconcile its proposal with those of the SEC's Reg AB.
In a report released today, Barclays Capital analysts said that they are expecting the FDIC to issue new requirements almost similar to what was presented in the Notice of Proposed Rulemaking or NPR issued on May 11.
For issues specifically affecting consumer ABS, Barclays analysts are expecting risk retention of 5%, with a possibility of varying requirements for the different asset classes. They also think that the FDIC will announce considerably increased disclosure requirements.
But, there is still uncertainty, according to analysts, regarding the interaction of the FDIC Safe Harbor with the Securities and Exchange Commission’s revisions to Reg AB as well as the requirements contained in the Dodd-Frank Act.
The ASF has schedule a sunset seminar on Oct. 20 to discuss the final rules.