Section 942 – Disclosures and Reporting for Asset-Backed Securities.

SEC. 942. DISCLOSURES AND REPORTING FOR ASSET-BACKED SECURITIES.

(a) Securities Exchange Act of 1934.--Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) is amended--

(1) by striking "(d) Each '' and inserting the following:

"(d) Supplementary and Periodic Information.--

"(1) In general.--Each";
(2) in the third sentence, by inserting after "securities of each class" the following: ", other than any class of asset-backed securities,"; and
(3) by adding at the end the following:

"(2) Asset-backed securities.--

"(A) Suspension of duty to file.--The Commission may, by rule or regulation, provide for the suspension or termination of the  duty to file under this subsection for any class of asset-backed security, on such terms and conditions and for such period or periods as the Commission deems necessary or appropriate in the public interest or for the protection of investors.
"(B) Classification of issuers.--The Commission may, for purposes of this subsection, classify issuers and prescribe requirements appropriate for each class of issuers of asset-backed securities.".

(b) Securities Act of 1933.--Section 7 of the Securities Act of 1933 (15 U.S.C. 77g) is amended by adding at the end the following:

"(c) Disclosure Requirements.--

"(1) <<NOTE: Regulations.>> In general.--The Commission shall adopt regulations under this subsection requiring each issuer of an asset-backed security to disclose, for each tranche or class of security, information regarding the assets backing that security.
"(2) Content of regulations.--In adopting regulations under this subsection, the Commission shall--

"(A) set standards for the format of the data provided by issuers of an asset-backed security, which shall, to the extent  feasible, facilitate comparison of such data across securities in similar types of asset classes; and
"(B) require issuers of asset-backed securities, at a minimum, to disclose asset-level or loan-level data,
if such data are necessary for investors to independently perform due diligence, including--

"(i) data having unique identifiers relating to loan brokers or originators;
"(ii) the nature and extent of the compensation of the broker or originator of the assets backing the security; and
"(iii) the amount of risk retention by the originator and the securitizer of such assets.".