On September 26, the SEC announced the publication of a concept release requesting public comment on potential improvements to its rules governing residential mortgage-backed securities (RMBS) and elements of asset-backed securities (ABS) more broadly. The SEC noted that there had not been any registered private-label RMBS offerings since 2013, despite the importance of the RMBS market for providing additional sources of liquidity and supporting lowering consumer mortgage costs.

The concept release sought feedback on whether current SEC regulations, including disclosure requirements, may have impeded registered RMBS offerings and whether revisions could facilitate a more active market. The SEC also solicited input on how sensitive information about mortgage loans could be shared with investors while addressing privacy and confidentiality concerns. Finally, the SEC requested comment on whether regulatory definitions or other ABS regulations should be revised to expand access to the public market.

SEC Chair Paul Atkins stressed the importance of gathering market participants’ feedback to “revive the public RMBS market” and that a “vibrant public market for RMBS” could reduce mortgage costs and benefit the domestic housing market. The SEC encouraged market participants, and the public writ-large, to submit comments on potential regulatory responses, costs, burdens or benefits — as well as on specific or alternative approaches to address the issues identified. Comments will be due 60 days following publication in the Federal Register.