The American Securitization Forum (ASF) has launched a new standardized universal code that identifies critical information about mortgages and other loans securitizedfor the secondary market. The objective of the initiative is to improve the flow of information and disclosure to investors and renew activity in the securitization markets to free up more capital for lending. The new global ASF Loan Identification Number Code (ASF LINC) is a 16-digit identification code that captures underlying loan type, origination date, and country of origin. The code creates a unique ID for a wide range of loans that may be pooled and sold into the capital markets. The code is a foundational component of ASF’s Project RESTART initiative to improve the securitization process. According to ASF, the code provides a chain of accountability between loan originators and investors, while creating a standardization and consistency in connecting and reporting monthly performance data on the underlying collateral of securitized products. The global ASF LINC can be integrated into existing computerized analytics and risk modeling programs used by investors, governments, and regulators to evaluate mortgage- and asset-backed portfolios. Tom Deutsch, deputy executive director of the American Securitization Forum, says the new tracking system will offer investors, for the first time, the ability to follow a loan throughout its life.

This is an important step to “rebuild investor confidence in mortgage and asset-backed securities, restore the capital flows to the securitization markets…and, ultimately, increase the availability of affordable credit to all Americans,” Deutsch said. The code was developed in conjunction with Standard & Poor’s Fixed Income Risk Management Services (FIRMS), an analytics and research unit separate from S&P’s ratings business. David Goldstein, managing director of S&P FIRMS, explained, “The global ASF LINC allows investors across a wide spectrum to track a loan from, literally, Main Street to Wall Street, identifying counterparties, obligors and other crucial risk criteria through the lifecycle of the loan no matter how many times it is bought, sold, or securitized. Best of all, the code provides a higher level of transparency and protects sensitive borrower privacy-protected information.” Assigned at no cost to issuers, the ASF LINC is stored in a central loan data repository administered by S&P FIRMS. The ASF LINC is not designed or intended to replace the primary servicer’s loan number, but rather to provide users with a means to track and monitor a loan throughout its life after the loan has been securitized.