The ESF have finalised RMBS Issuer Principles for Transparency and Disclosure and two data reporting templates for RMBS issuers to be used in conjunction with the principles. These are the ESF Prime RMBS Standardised Reporting Template and a new combined uniform Credit Rating Agency Reporting Template for UK Non-Conforming RMBS. This release represents initiatives four, eight, and nine of the Ten Industry Initiatives to Increase Transparency in the Securitisation Markets committed to the European Commission, delivered as promised and on schedule.
For download:
RMBS Issuer Principles for Transparency and Disclosure December 08 | .pdf
Credit Rating Agency Unified Template for UK Non-Conforming, December 2008 | .xls | .pdf
Prime RMBS Standardised Reporting Template December 2008 | .xls | .pdf
The Principles represent a key part of the industry's response to challenges set by the Financial Stability Forum and International Organisation of Securities Commissions' recommendations to achieve improved initial and ongoing transparency in securitisation transactions. They will encompass all RMBS secured by prime and non-conforming mortgage loans originated by European Economic Area (EEA)-based issuers, whether issued under stand-alone or revolving structures, including master trusts. To further enhance transparency and disclosure, the ESF has also developed a European RMBS Issuer Directory.
The Principles propose a new combined uniform Credit Rating Agency Reporting Template for the minimum information to be provided by issuers to credit rating agencies in respect of UK Non-Conforming RMBS. The credit rating agencies have indicated that they will start to include the template in their information gathering processes for new UK non-conforming RMBS transactions closing as from 31 March 2009.
The Principles have been developed through active consultation with RMBS issuers and other market participants including investors from Italy, the Netherlands, Spain and the UK. These jurisdictions represent the largest European RMBS markets in terms of issuance volumes. The Principles have been drafted to enhance four aspects of data disclosure: transparency, accessibility, comparability and granularity. The Principles and the associated reporting templates are living documents that will evolve to reflect market developments.
A number of issuers, including those set out in the table below, support the Principles and plan to comply with them for new RMBS transactions from the end of 2009. This list will be updated frequently to reflect the endorsement of new issuers.
| Issuer | Programme | Jurisdiction |
| Abbey National PLC | Holmes Master Issuer PLC | United Kingdom |
| Barclays Bank PLC | Gracechurch Mortgage Financing PLC | United Kingdom |
| Bradford & Bingley PLC | Aire Valley Master Trust | United Kingdom |
Britannia Building Society | Leek | United Kingdom |
Clydesdale Bank PLC | Lanark Master Issuer PLC | United Kingdom |
| GMAC-RFC Ltd. (UK) | RMAC | United Kingdom |
| HBOS | Permanent Master Issuer PLC | United Kingdom |
| Investec PLC | Residential Mortgage Securities, Money Partners Securities,
Kensington Mortgage Securities and Landmark Mortgage Securities | United Kingdom |
| Lloyds TSB Bank PLC | Arkle Master Issuer PLC | United Kingdom |
| Nationwide | Silverstone Master Issuer PLC | United Kingdom |
| Paragon Group | Paragon Mortgages PLC | United Kingdom |
| Royal Bank of Scotland Group | Arran Residential Mortgages Funding PLC and Greenock Funding Limited | United Kingdom |
| Obvion N.V. | STORM | The Netherlands |
| SNS Bank | Hermes and PEARL | The Netherlands |
While above firms support the Principles on a broad level, specific firm endorsement will take place according to the following terms:
Abbey National PLC: "Abbey endorses and commits to the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the Principles") in respect of any new issuance out of the Holmes Master Issuer plc programme as well as any new own originated RMBS transactions post 31 December 2009. Abbey commits to the Principles in order to enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions."
Barclays Bank PLC: "Barclays Bank PLC ("Barclays") endorses and commits to the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Gracechurch Mortgage Financing PLC programme as well as any new own originated RMBS transactions post 31 December 2009. Barclays commits to the Principles in order to enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, Barclays intends to use best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
Bradford & Bingley PLC: "Bradford & Bingley plc endorses and intends to follow the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles"). Bradford & Bingley plc believes that the Principles will enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, Bradford & Bingley plc intends to use reasonable efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions under the Aire Valley Master Trust Programme."
Britannia Building Society: "Britannia Building Society endorses and supports the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Leek programme. It is also the intention of Britannia Building Society to take appropriate steps to ensure, if possible and where appropriate, that existing mortgage programmes where they relate to publicly distributed transactions, comply with these Principles. All new own originated RMBS transactions post 31 December 2009, where it is deemed to be appropriate and possible, will also comply with these Principles. Britannia is committed to the Principles in order to enhance the comparability and transparency of RMBS transactions."
Clydesdale Bank PLC: "Clydesdale Bank PLC ("Clydesdale") endorses and commits to the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance from the Lanark Master Issuer plc programme (Master Trust Structure) as well as any new own originated RMBS transactions post 31 December 2009. Clydesdale commits to the Principles in order to enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Furthermore, Clydesdale intends to use best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
GMAC-RFC Ltd. (UK): "GMAC-RFC Ltd endorses and intends to follow the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the Principles") in respect of any new issuance out of the RMAC Programme as well as any new GMAC -RFC Ltd sponsored RMBS transactions post 31 December 2009. GMAC-RFC Ltd believes that the Principles will enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, GMAC-RFC Ltd intends to use reasonable best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
HBOS: "HBOS (part of the Lloyds Banking Group) endorses and supports the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Permanent Master Issuer PLC programme. It is also the intention of HBOS to take appropriate steps to ensure, if possible, that existing mortgage programmes where they relate to publicly distributed transactions, comply with these Principles. All new own originated RMBS transactions post 31 December 2009 , where it is deemed to be appropriate and possible, will also comply with these Principles. HBOS is committed to the Principles in order to enhance the comparability and transparency RMBS transactions."
Investec PLC: "Investec Bank plc ("Investec") endorses and intends to follow the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of both the Kensington Mortgages Securitisation Programmes (Residential Mortgage Securities, Money Partners Securities & Kensington Mortgage Securities) and the Landmark Mortgage Securities programmes as well as any new Investec originated RMBS transactions post 31 December 2009. Investec believes that the Principles will enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, Investec intends to use reasonable best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
Lloyds TSB Bank PLC: "Lloyds TSB Bank plc (“LTSB”) endorses and supports the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Arkle Master Issuer PLC programme. All new own originated RMBS transactions post 31 December 2009, where LTSB deems it to be appropriate and possible, will also comply with these Principles. LTSB is committed to the Principles in order to enhance the comparability and transparency of RMBS transactions."
Nationwide: "Nationwide endorses and commits to the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Silverstone Master Issuer PLC programme as well as any new own originated RMBS transactions post 31 December 2009. Nationwide commits to the Principles in order to enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, Nationwide intends to use best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
Obvion N.V.: "Obvion N.V. endorses and commits to the implementation of the "European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure" (the "Principles") in respect of any new own originated RMBS transactions post 31 December 2009. Obvion N.V. commits to the Principles in order to enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, Obvion N.V. intends to use reasonable best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
Paragon Group: "Paragon Group ("Paragon") endorses and intends to follow the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Paragon Mortgages plc programme as well as any new Paragon originated RMBS transactions post 31 December 2009. Paragon believes that the Principles will enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, Paragon intends to use reasonable best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
Royal Bank of Scotland Group: "Royal Bank of Scotland Group ("RBS") endorses and intends to follow the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of any new issuance out of the Arran Residential Mortgages Funding plc and Greenock Funding Limited programmes as well as any new RBS originated RMBS transactions post 31 December 2009. RBS believes that the Principles will enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, RBS intends to use reasonable best efforts to ensure compliance with the principles in respect of existing own originated RMBS transactions."
SNS Bank: "SNS Bank endorses and commits to the implementation of the 'European Securitisation Forum RMBS Issuer Principles for Transparency and Disclosure' (the "Principles") in respect of all reporting requirements for existing (HERMES and PEARL) and any new RMBS issuance post 31 December 2009. SNS Bank commits to the Principles in order to enhance comparability and transparency in the pre-issuance disclosure and post-issuance reporting of RMBS transactions. Further, SNS Bank already has implemented changes in its reporting to be compliant with the guidelines as of 1 January 2009."