Dodd-Frank Act: Changes to the Regulation of Asset-Backed Securities

On the back of the financial crisis, the Dodd-Frank Act included enhancements to the regulation of asset-backed securities, primarily in Subtitle D of Title IX which is titled Improvements to the Asset-Backed Securitization Process. Here we describe in detail the key elements of the Dodd-Frank Act that relate to asset-backed securitization, including the risk retention requirement, rules related to conflicts of interest, and due diligence, disclosure, and reporting requirements.