Germany makes room for RMBS growth

Germany's second parliamentarian chamber, Bundesrat passed changes to the German Banking Act on the introduction of a refinance register on Friday and market sources report that the new law is expected to come into effect by July 19. To date, only synthetic and true sale of certified mortgages have been possible and sources say the new law should facilitate the transfer of large mortgage pools and stimulate the growth of German true-sale RMBS transaction going forward.