New MISMO standards are critical to a growing PLS market
Prior to the Great Recession, private label securitizations (PLS) constituted a majority of all residential mortgage-backed securities (RMBS) issued. In the intervening years, the makeup of the RMBS market has changed significantly and, today, Fannie Mae, Freddie Mac, and Ginnie Mae are responsible for approximately 99% of RMBS issuance. For a variety of reasons, including recent policy changes at Fannie Mae and Freddie Mac that cap second home and investor property loan volumes, and growth in jumbo loan volume driven by increasing home prices, there has been renewed interest in the PLS market and its future growth.
Fortunately, MISMO, the real estate finance industry's standards organization, is here to help market participants navigate any uptick in PLS activity from a data perspective. Since 2018, MISMO has been developing a modern, standardized data set to facilitate the electronic exchange of information to the credit rating agencies that analyze risks in mortgage assets. I am pleased to announce that MISMO will soon make this new standard available for public comment... Read More Here!