The proposal for the new Draft Act,' which will make changes to the Dutch law with regard to borrower notification of any asset transfer, was submitted to parliament on May 14, 2003. Although it is not possible to predict when the new Draft Act will be promulgated, it is hoped this will not take too long and that it could happen in the second half of this year.

There has always been an unresolved legal issue in Dutch RMBS securitizations: institutions needed to inform mortgage holders if they were transferring their mortgages as collateral for bonds. This is obviously cumbersome, so for commercial reasons, originators usually did not notify their customers of their assignment at closing.

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