UPDATE: PIMCO is NAIC's Choice

Posted on November 17, 2009 by Cailie Currin

The NAIC announced late today that PIMCO has been selected as the third party financial modeler to assist state regulators in their determination of the risk based capital (RBC) requirements for residential mortgage-backed securities (RMBS). 

In today's press release, Roger Sevigny, NAIC President stated:  “Creating this new assessment process is an important step toward providing more transparency about these complex securities.  This unique treatment of residential mortgage-backed securities distinguishes the NAIC as the only regulator to analyze these securities and require capital based upon the expected loss amount for a particular company. ”

An open  Valuation of Securities Task Force call is scheduled to take place on November 30 as the next step. There will also be a task force briefing at the NAIC Winter National Meeting on December 7 in San Francisco.  Because companies need to begin reporting under the appropriate designation in early 2010, the pressure will remain to keep this process moving quickly. 

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