Treatment of financial assets transferred in connection with a securitization or participation.

CFR · 2024-01-01 · US · Title 12

(a) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (i) The Federal National Mortgage Association and any affiliate thereof; (ii) Federal Home Loan Mortgage Corporation and any affiliate thereof; (iii) The Government National Mortgage Association; and (iv) Any federal or state sponsored mortgage finance agency. (11) (12) (i) The conveyance of a financial asset or financial assets to an issuing entity or (ii) The creation of a security interest in such asset or assets for the benefit of the issuing entity. (b) (1) (i) (A) The securitization shall not consist of re-securitizations of obligations or collateralized debt obligations unless the documents creating the securitization require that disclosures required in paragraph (b)(2) of this section are made available to investors for the underlying assets supporting the securitization at initiation and while obligations are outstanding; and (B) The documents creating the securitization shall require that payment of principal and interest on the securitization obligation must be primarily based on the performance of financial assets that are transferred to the issuing entity and, except for interest rate or currency mismatches between the financial assets and the obligations, shall not be contingent on market or credit events that are independent of such financial assets. The securitization may not be an unfunded securitization or a synthetic transaction. (ii) (A) The capital structure of the securitization shall be limited to no more th

official document · source cfr-2024 · id 12:§ 360.6