MISMO Seeks Input on Standardized Dataset for Private Label Mortgage Assets
MISMO, the mortgage industry's standards organization, is seeking participants to define a standardized mortgage asset dataset to support rating agency asset valuation efforts necessary for securitizing residential mortgages. Those interested in collaborating with MISMO are invited to join MISMO's new Private Label RMBS Valuation Workgroup, which will be responsible for defining and implementing a standard dataset and related materials for use in grading publicly-traded private label mortgage-backed securities.
To help investors evaluate the quality of mortgage assets, rating agencies assign risk grades to loans based on the exceptions and conditions uncovered after closing by third party review firms. Currently, mortgage asset data is delivered to rating agencies in an older format required by all rating agencies. The current format is out of date and no longer maintained leading to supplemental data requirements that vary in format in content between rating agencies and third-party review firms. Read More Here.