{"product_id":"9783899369908","title":"Analysis of non-compliant loans in German synthetic mortgage-backed securities transactions","description":"Over the term of a securitisation transaction, the concept of non-compliance enables a securitising bank to classify a securitised loan as materially non-compliant with transaction-specific, contractually agreed requirements. Such a loan becomes unqualified for loss allocation to the account of the protection sellers. Therefore, non-compliant loans can directly affect transaction performance and the extent of risk transfer that is actually achieved with the transaction. The concept of non-compliance is incorporated in many securitisations independent of the underlying assets or structure.\u003cp\u003eIn Germany, there are currently no specific regulatory provisions in place regarding this concept. However, a bank can use discretion when classifying a loan as non-compliant and could thus report non-compliant loans strategically. This hypothesis is tested based on a unique data set. The potential regulatory effects associated with such conduct are elaborated. Suggestions are made for a more adequate regulatory treatment of non-compliant loans.\u003c\/p\u003e","brand":"Josef Eul Verlag GmbH","offers":[{"title":"Default Title","offer_id":47052254511344,"sku":"9783899369908","price":68.9,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/9783899369908_p0.jpg?v=1763702472","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/9783899369908","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}