SEC Sets Bar To Meet 'Mortgage-Related Security' Definition

Law360, New York (July 20, 2012, 6:36 PM EDT) -- The U.S. Securities and Exchange Commission has issued guidance that temporarily defines the creditworthiness necessary for a security to meet the definition of “mortgage-related security” as the commission works on permanent rules mandated by the Dodd-Frank Act.

As the commission develops the standards of creditworthiness that will be necessary for mortgage-related securities as well as small-business-related securities under the Securities Exchange Act of 1934, as amended by Dodd-Frank, it will use credit ratings by a Nationally Recognized Statistical Ratings Organization, as it has up to this...
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