MISMO Fall Summit: Building Confidence and Efficiency into Non-Agency Data Exchanges

Mortgage Bankers Association

CRYSTAL CITY, VA.-An efficient private-label securities market requires that investors have confidence in their understanding of asset quality for their deals. But questions remain, according to panelists here at the MISMO Fall Summit-and ongoing work under the auspices of MISMO is poised to help provide much-needed data standardization.

"We think about what the PLS market could be-the full potential of a sustainable PLS market," said Dan Fichtler, Associate Vice President of Housing Finance Policy with the Mortgage Bankers Association. "Who could we be serving in a responsible manner who isn't being served well today? What is needed, to move from the current state to more efficient non-agency deals? Can we provide trust in ways that makes PLS more competitive? Are there lessons to be learned from the agency [Fannie Mae/Freddie Mac/Ginnie Mae] model?"

Vanessa Purwin, Senior Director with S&P Global Ratings, said she is seeing greater enthusiasm for the private-label securities market and attempts to revive the market in a responsible manner. "PLS is currently a small fraction of the market-just 3 percent," she said. "But it's 3 percent of a $12 trillion market, so it's still a lot." Read More Here!