On May 9, 2016, Moody’s published its cross-sector approach to mapping national scale ratings (NSRs) from their global scale ratings (GSRs). Report.
On May 5, 2016, Fitch published its global rating criteria for dealer floorplan ABS. Report.
SueAnn Yue, a Partner in the Los Angeles office, is a member of the Structured Finance Group.
SueAnn represents issuers, sponsors, placement agents, servicers, underwriters, and other market participants in connection with both public offerings and private placements, asset acquisitions and sales and the negotiation of lending facilities.
Her practice encompasses a variety of asset-backed securities, including credit and charge card receivables, residential mortgage-backed securities (RMBS), agency and government sponsored mortgage loans, and tax lien-backed securities.
SueAnn advises clients on the implications of financial markets regulation, including the implementation of the Dodd-Frank Act. SueAnn is also an editor of Orrick's Financial Industry Week in Review.
Posts by: SueAnn Yue
The SEC is Seeking Comment on a Joint Agency Proposed Rule Relating to Incentive-based Compensation Arrangements
On May 6, 2016, the Office of the Comptroller of the Currency, Treasury (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency (FHFA), the National Credit Union Administration (NCUA), and the U.S. Securities and Exchange Commission (SEC) issued and sought comment on a joint proposed rule to implement section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) relating to the prohibition on and the disclosure of information of incentive-based compensation arrangements. The deadline for comments is July 22, 2016. Notice of Proposed Rulemaking and Request for Comment.
U.S. Treasury Announces Customer Due Diligence Final Rule for Financial Institutions
On May 5, 2016, the U.S. Department of the Treasury announced a Customer Due Diligence (CDD) Final Rule that requires financial institutions to conduct certain diligence to verify personal information of beneficial owners of legal entity customers. The final rule under the Bank Secrecy Act was published in the Federal Register on May 11, 2016 and becomes effective July 11, 2016. Press Release. Final Rule.
CFPB Proposes Prohibition on Mandatory Consumer Arbitration Clauses
On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) issued and sought comment on proposed rules prohibiting mandatory arbitration clauses that deny groups of consumers their day in court. Under the proposed rules, companies would be prohibited from putting mandatory arbitration clauses in new consumer contracts that would prevent consumers from bringing class actions. Comments must be received on or before 90 days after publication in the Federal Register. Press Release. Proposed Rule.
Rating Agency Developments
On March 30, 2016, Moody’s published its rating methodology for assessing green bonds. Report.
On March 30, 2016, DBRS published its methodology for rating Canadian structured finance instruments. Report.
On March 30, 2016, DBRS updated and is requesting comment on its methodology for analyzing the credit risk of European RMBS. Report.
On March 30, 2016, DBRS published and is requesting comment on its methodology for analyzing Spanish mortgages. Report.
On March 29, 2016, DBRS published and is requesting comment on its methodology for conducting surveillance on U.S. ABS. Report.
On March 29, 2016, DBRS published and is requesting comment on its operational risk assessment methodology for U.S. ABS servicers. Report.
On March 29, 2016, DBRS published and is requesting comment on its operational risk assessment methodology for U.S. ABS originators. Report.
On March 29, 2016, DBRS published and is requesting comment on its methodology for rating pooled aircraft lease securitizations. Report.
On March 24, 2016, DBRS published its rating methodology for supranational institutions, or multilateral financial institutions (MFIs). Report.
On March 24, 2016, Fitch updated its rating criteria for U.S. auto lease ABS. Press Release.
On March 24, 2016, S&P published its methodology and assumptions for U.S. tobacco settlement securitizations. Report.
The CFTC Announces Final Rule for Alternative to Fingerprinting for Foreign Natural Persons
On March 28, 2016, the U.S. Commodity Futures Trading Commission (CFTC) approved a final rule that will add an alternative method of CFTC registration for foreign natural persons. The CFTC will now accept a registered firm’s criminal history background check on such foreign natural person in place of fingerprints. The final rule is set to take effect 30 days after its publication in the Federal Register. Press Release.
Joint Interim Final Rule Published Relating to Expanded Examination Cycle Eligibility
On March 24, 2016, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) issued and are requesting public comment on an interim final rule that will allow more community banks to be eligible for the 18-month on-site examination cycle. The rule expands eligibility to qualifying insured depository institutions with less than $1 billion in total assets. Press Release. Interim Final Bill.
The CFPB Releases Consumer Bulletin on Marketplace Lending and Announces It Is Accepting Consumer Complaints
On March 7, 2016, the Consumer Financial Protection Bureau (the “CFPB”) released a consumer bulletin with information and tips for consumers of marketplace lending. The bulletin provides consumers with an overview of the peer-to-peer lending platform, as well as tips and general steps that should be taken when shopping for a loan. In conjunction with the release, the CFPB also announced that it is accepting complaints from consumers taking out loans from online marketplace lenders. Complaints are anticipated to be addressed within 60 days. CFPB Guide. Press Release.
Rating Agency Developments
On March 8, 2016, Fitch updated its global rating criteria for single- and multi-name credit-linked notes. Report.
On March 8, 2016, DBRS published its methodology for rating European covered bonds. Report.
On March 4, 2016, DBRS published its methodology for rating North American CMBS. Report.
On March 3, 2016, Fitch updated its rating criteria for pooled multifamily housing bonds. Report.
On March 3, 2016, Fitch updated its rating criteria for solar power projects. Report.
On March 3, 2016, DBRS published its methodology for rating public-private partnerships. Report.
On March 3, 2016, DBRS published its methodology for rating market-linked securities. Report.
On March 3, 2016, DBRS published its criteria for recovery ratings for non-investment grade corporate issuers. Report.
U.S. Commodity Futures Trading Commission and European Commission Announce Common Approach for Transatlantic CCPs
On February 10, the U.S. Commodity Futures Trading Commission (the “CFTC”) and the European Commission announced a common approach relating to requirements for transatlantic central clearing parties (CCPs). The CFTC and the European Commission will work together to adopt (1) an equivalence decision that will allow US CCPs to continue to provide services in the EU whilst complying with CFTC requirements and (2) a determination of comparability that will allow EU CCPs to provide services to US clearing members whilst complying with EU requirements. These next steps will be put into place as soon as practicable.