FDIC Finalizes Changes to Securitization Safe Harbor Rule

The FDIC today finalized amendments to its securitization safe harbor rule, which addresses circumstances that may arise if the FDIC is appointed receiver or conservator for an insured depository institution that has sponsored one or more securitization transactions.

With this final rule, the FDIC is removing a disclosure requirement that documents governing securitizations transactions be compliant with the Securities and Exchange Commission’s Regulation AB in order to be afforded safe harbor treatment by the FDIC. The rule is expected to ease the reporting and disclosure requirements imposed by Reg AB to encourage certain mortgage-backed securitizations. The rule is effective 60 days after publication in the Federal Register.