Norton Rose rewrites securitization conventions

Author: | Published: 1 Apr 2005

London-based law firm Norton Rose and investment bank Bear Stearns have used the bank's first UK mortgages deal as a launch pad to introduce a more flexible, more comprehensive prospectus for English law residential mortgage-backed securities (RMBS).

The £125 million ($240 million) deal, Farringdon Mortgages No 1, by Bear Stearns' sub-prime mortgage subsidiary Rooftop Mortgages, marks an attempt to improve the documentation in what is a commoditized market. Bear Stearns took the opportunity as arranger of this first deal by its own subsidiary to change and improve upon documents used in most UK RMBS transactions. The changes make it easier for prospective investors to navigate the offering documents while also simplifying the process for the originator, arranger and advisers to carry out repeat issues.

The first...