MISMO has released a new standardized dataset meant to improve the quality and consistency of mortgage asset data sent to the rating agencies and is seeking public comment.
Known as the private label securitization (PLS) standard, this new dataset should lead to improved due diligence for private label residential mortgage-backed securities, MISMO said.
“If market participants are going to truly capitalize on the increased volume of loans for which PLS may be the best execution in the secondary market due to GSE policy changes and home price appreciation – particularly for the second home, investor property, and jumbo mortgages – then they need the increased capacity and efficiency that comes from data standardization,” MISMO President Seth Appleton said in a release.
“This dataset removes a key barrier to the development of a more robust PLS market and we look forward to feedback from any and all interested parties,” Appleton added. “Our intent is to help facilitate a more efficient and effective due diligence process through widespread adoption of the dataset.”
MISMO’s private label RMBS valuation workgroup, along with stakeholders from the real estate finance industry such as rating agencies, originators, issuers, due diligence third-party reviewers, and investors, developed this new standard.
The comment period is now open and will run through Nov. 5, 2021. Those who participated on the proposals should also use this time to review and disclose any applicable patent rights. Additionally, any non-participant organization that may have patents, patent applications, or other intellectual property rights that might be infringed upon by an organization that uses or is compliant with the proposed dataset and related materials should disclose them in writing during the comment period.