The Securities and Exchange Commission will vote Wednesday morning on much-delayed rules that would require increased disclosure about the quality of mortgages, auto loans, credit card receivables and other kinds of debt backing securitizations.
The rules were mandated by Dodd-Frank to address concerns that investors didn't have enough information to independently assess the risk in bonds that suffered big losses as a result of the financial crisis.
The SEC has been trying to balance requests from investors for almost limitless information, seen as particularly important for restoring confidence in mortgage-backeds, with the rights of consumers for privacy.
One point of contention is whether issuers would be required to make loan-level information available to investors on their websites, making them responsible for any violations of privacy, or wether the information would be disclosed by the SEC. There has
The rules could also mandate a slowdown in the time it takes to bring deals to market; previous proposals called for a five-day waiting period between the publishing of a preliminary prospectus and
They are expected to be extended to asset-backed securities that are privately offered to a few large, sophisticated investors.
The SEC put the vote on its agenda for an open meeting Wednesday; it has yet to release the final version of the rules.