The NAIC is seeking proposals for a vendor to model expected losses on approximately 7,500 commercial mortgage-backed securities (CMBS) as of December 31, 2010, according to a news release issued by the NAIC July 28, 2010.  The expected losses will determine NAIC designations used by insurers to calculate the solvency reserves needed to cover their CMBS holdings.

The NAIC used a similar method to establish NAIC designations for residential mortgage-backed securities at the end of 2009.  In March 2010, the NAIC Financial Condition Committee adopted a recommendation to model CMBS at the end of 2010.  According to the news release, the recommendation is expected to be adopted during the upcoming Summer National Meeting in Seattle.

Responses to the RFP are due August 11th, and a vendor is anticipated to be selected by September 3rd.

To view the news release, click here.  To view the RFP, click here.