RT Journal Article SR Electronic T1 Securitized Loan Due Diligence: Expert Status for
Independent Third-Party Review Firms JF The Journal of Structured Finance FD Institutional Investor Journals SP 51 OP 53 DO 10.3905/jsf.2011.17.3.051 VO 17 IS 3 A1 Sue Allon YR 2011 UL https://pm-research.com/content/17/3/51.abstract AB This article explains the need for an independent mortgage loan review process in connection with the securitization of mortgage loans, the U.S. SEC’s new stipulation that any diligence firm named to a transaction will be held to expert status, and five key areas the diligence industry must address to shoulder the extra burden of being held legally liable for statements: a certification process for expert firms, a certification process for analysts, standards for training, standards for loan reviews, and a governing body of peers. It is premature to hold a firm to expert status before the industry is ready to step up and provide the other mechanisms that will enable firms to perform at that level.TOPICS: MBS and residential mortgage loans, legal and regulatory issues for structured finance