Requires issuers of asset-backed securities to provide detailed disclosures about the securities, including information about the underlying assets, credit enhancement, and transaction structure, to help investors understand the risks and potential returns of the securities.
The regulation also mandates the disclosure of specific information about the sponsor, depositor, and servicer, as well as the asset pool, including delinquency and loss data, to enable investors to assess the creditworthiness of the securities and make informed investment decisions.
Additionally, the regulation imposes requirements on issuers to provide ongoing disclosures, such as periodic reports and event-driven disclosures, to keep investors informed about the performance of the securities and any material changes to the transaction, thereby promoting transparency and investor protection in the asset-backed securities market.
