SEC Adopts ASA Recommendations for Minimum Review Requirements

Jan. 25, 2011 - PRLog -- Herndon, Va. — On January 20, the Securities and Exchange Commission voted to approve final rules requiring the review of asset-backed securities offerings by the issuer or a third party.  In these rules, the SEC imposed a minimum review standard, something that ASA had advocated for in a joint comment letter with the National Association of Independent Fee Appraisers (NAIFA) and the American Society of Farm Managers and Rural Appraisers (ASFMRA).  This rulemaking sets the table for a subsequent action regarding the collection of asset-level data underpinning ABS offerings; ASA has strongly urged the SEC to address its valuation policies as part of this rulemaking to require wider use of appraisals in ABS offerings.

ASA, NAIFA, and ASFMRA’s comment letter to the SEC is available on ASA’s website www.appraisers.org.  ASA will post the full rule to its website when it becomes available.

John D. Russell, JD, Director of Government Relations comments, “This is a good first step by the Commission to ensure consumer confidence in asset-backed securities transactions, not only in the totality of the transaction, but in the underlying assets as well.”

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The American Society of Appraisers is an international organization of appraisal professionals and others dedicated to the education, development and growth of the appraisal profession. To find an accredited appraiser near you, visit www.appraisers.org