Commercial Mortgage Securities Association (CMSA) says it supports a decision not to consider a controversial component within the credit rating agency reform measures finalized by the Securities and Exchange Commission (SEC) – a requirement that credit rating agencies differentiate ratings for structured products.
CMSA members, particularly investors, have been strongly opposed to ratings differentiation, believing the arrangement would create confusion, uncertainty and implementation issues that could affect liquidity. The move not to consider the proposal is applauded by investors and participants in the overall commercial real estate capital market finance industry who have made this issue a top priority in 2008, CMSA notes.
Similarly, John A. Courson, chief operating officer of the Mortgage Bankers Association (MBA), issued a statement of support for the SEC's decision.
‘Structured finance transactions remain and will continue to serve as a vital segment of the capital markets, and the success or failure of a securitization is attributable to the quality of its underlying assets, not its structure,’ he says.
Sources: CMSA, MBA