Two and a half years in the making, guidelines for financial asset securitization investment trusts (Fasit) have finally been issued. While market observers are surprised the U.S. Treasury Department even issued these long-awaited guidelines, they have been drawn to two or three specific areas of the proposed regulations.

Congress first passed legislation in August 1996 creating the new securitization structure, which was an attempt to apply the real estate mortgage investment conduit (Remic) structure to other non-real-estate asset classes, particularly credit-card receivables and construction loans. However, because the legislation was an addendum to a minimum-wage bill, it is believed the Treasury was never really enthusiastic in providing guidelines for the structure, and presented these guidelines to answer criticism of their delay.

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