On Jul. 17, ISR CB outlined new reporting to aid securitization market.
ISR CB issued new banking system reporting directiveIndividual report on housing loans - refinancing, arrears, and early repayment to the promote securitization market.
Summary
Credit securitization is expected to reduce funding costs for nonbank credit providers.
Also expected to grow credit market competition; this should enable credit providers to make capital available for the provision of new credit and to expand the credit supply.
Should also make it possible to combine bank/nonbank credit provider underwriting and credit monitoring expertise, with the availability to fund sources from institutional investors and their desire/need to expand the diversification of their investments.
Legislation to provide certainty and minimize associated risks, is in advanced stages.
A precondition for securitization transactions is ability of various ratings agencies to assess risks in relevant portfolios & rate them based on reliable/relevant information.
Directive will support publishing of static and dynamic market information, for more advanced mortgage market risk assessment/housing credit data for decision makers.
