Debtwire Podcast: Eric Kaplan Discusses FIIN RMBS Task Force

Recently appointed RMBS Task Force Chair, Eric Kaplan featured ABS in Mind, a podcast series from Debtwire ABS, presents listeners with the latest issues affecting asset-backed securities markets and the loans they finance.

In this episode, Eric Kaplan, the Director of the Milken Institute Center for Financial Markets Housing Finance Program, discusses his goals for working with the Fixed-Income Investor Network. In his FIIN role, he’ll be a “different set of eyes” for investors and address how documentation and reporting details should be scrutinized amid the Covid-19 pandemic, he said.


Every deal is different,” Kaplan said. “And within each deal, there are some things that are disclosed and readily available for investors to look at and gauge and understand … but there are some things that are not.”

Kaplan is encouraging investors to compare the rights they have in non-agency RMBS to those they’d be able to exercise by owning raw, unsecuritized loans. The theme is a familiar one to any RMBS investor who found it difficult to influence the servicing outcomes of the loans backing their bonds.

In some cases, two servicers of loans in the same RMBS will have different interpretations of how to manage loans during the pandemic, he said. That “obliterates the integrity of the data being reported,” he said.

Kaplan also discusses proposed changes to the Qualified Mortgage rule, including replacing the DTI limit with a price-based approach to risk measurement. To listen to the episode in its entirety please click here.