CC - Fannie is reviewing FIBO and is looking at reconciling some concepts across multiple domains
MB - agenda (FNMA requirements, Ratings, CCM/diagrams, JIRAs, Address POC)
CC - Evaluating FIBO concepts for MBS class hierarchy (concepts are "mixed together" - goal is to find some essential partitions and reconcile
CC diagram on MBS - some concepts (partitions) for things like "registered" and "collateral"
CC - distinctions btw collateralized and non-collateralized are important. Question is at what level are concepts defined in FIBO and how to best use the core concepts in the most efficient way
CC - using ABS (debt instrument that is collateralized) - has the same relationships but there will be a different hierarchy of collateral
CC - definition for negotiated vs. agreement
MB - there is a distinction btw "negotiated" vs. "something that is negotiable" - negotiable denotes rights to sell vs negotiated (i.e. a financial instrument)
CC - seeking to understand both the level of concepts in FIBO as well as the definition of the concepts as they build the hierarchy for FNMA
MB - for next meeting revisit the hierarchy of contract concepts to make sure FIBO aligns with business reality
CC - will make some specific recommendations as the basis for that evaluation and to identify any concepts that aren't completely clear
MB - look up the definition of "registered" - does it cover all financial contract types
CC - the level for "registered" needs to be re-examined. The same for "collateralized" and "negotiated"
John Gemski: Unregistered security:
A security that has not been registered with the SEC and therefore may not be sold publicly. These securities frequently enter portfolios of institutional investors through private placements and are sometimes registered at a later date. Also called letter bond, letter security, letter stock, unregistered security.
From Investopedia: For example, a privately-owned corporation may issue shares of stock to its executives and board members, but the new stockholders must notify the SEC before selling the stock to someone else.
MB - revisit the hierarchy (kinds of contract) and push off to FBC (types of instruments)
MB - evaluate the building blocks for contract (level, definition and relationships)
MB - agenda for next week also include "arrangements"