The U.S. Securities and Exchange Commission’s regulation that issuers of asset-backed securities conduct review of loans and leased packaged into the ABS is “worthless,” according Sue Allon, founder of Allonhill, a mortgage-review firm. Commenting on the SEC mandate approved Jan. 20, Allon said that allowing issuers to evaluate their own loans and not requiring it is “like Ford Motor saying their own financials are legitimate, rather than an accountant.”
