Banking organizations looking to reduce the amount of risk-based regulatory capital required to support residential mortgage loan portfolios can use synthetic securitization to convert the capital treatment of their exposures from wholesale or retail exposures to securitization exposures. In this Legal Update, we discuss how regulatory capital requirements impact banking organizations that hold portfolios of

Residential mortgage servicers are obligated to indemnify Freddie Mac for loss of funds in custodial accounts or delays in access to the funds in custodial accounts, even when they comply with all of their obligations to Freddie Mac, based on Freddie Mac Bulletin 2023-10, issued on April 12, 2023. The Bulletin is an apparent response to recent bank failures, and – in less of a surprise – also includes new standards for eligible banks and rules for titling and use of clearing accounts. The Bulletin is immediately effective, however, and therefore may require prompt action, depending on whether or a not a servicer’s accounts already meet the new requirements.Continue Reading Freddie Mac Springs New and Potentially Concerning Requirements on Servicers for Custodial Accounts

Mayer Brown has established a web page through which interested persons can access resources and content related to the recent collapses of Silicon Valley Bank (SVB) and Signature Bank, and the impacts on depositors, borrowers and the market. The main page is here, and direct access to recent webinars is available under the “Events”