The Securities Industry and Financial Markets Association (SIFMA) announced that it has formed a Mortgage-Backed Securities Due Diligence Managers Committee. The committee will be a forum for MBS due diligence managers who are responsible for validating that mortgage pools being bought for securitizations conform to specific characteristics in line with their specified level of risk and to address issues important to the securitization industry.
John Mongelluzzo, managing director at Bear Stearns, will chair the committee. "As MBS due diligence managers, it is essential for us to stay ahead of changes in the market and adjust our processes accordingly," Mongelluzzo said. He added that this committee provides a chance an opportunity for us to address issues of importance to the industry as they adjust their own internal risk management processes as a response to changing market conditions.