At a forum hosted by the American Securitization Forum last Wednesday in New York, ABS participants willingly shared the blame for current market problems, and admitted that a lot of the old ways of doing business, including relying so heavily on REMIC laws, will not work.

James Callahan, executive director of Pentalpha Capital Group, said it was time to recognize that the current approach "was great when everyone was paying their bills, but now we have 25% of the people not paying their bills. It's time for a do-over."

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