New regulations for credit rating agencies that took effect this week are expected to make mortgage and other asset-backed securities more transparent by requiring broader disclosure of certain due diligence reports.

Under the rules, which were mandated under the Dodd-Frank Act and issued by the Securities and Exchange Commission, reviews and reports that due diligence providers previously delivered to investment bankers and rating agencies must be shared directly with the public, said Jeff Taylor, co-founder and managing partner of Digital Risk.

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