dv01 and Fitch have joined to launch two “non-agency RMBS benchmarks.” Residential mortgage-backed securities represent a pool of home loan mortgages secured by the property. dv01 is a capital markets Fintech that offers lending data on more than 230 million loans. dv01 was acquired by Fitch in 2022.
The two companies state that the benchmarks are accessible for free and represent 75% of their respective sectors. The Non-QM benchmark comprises over 210,000 total originations, and the Prime Jumbo Benchmark comprises over 200,000 total originations.
The Fitch-dv01 Non-Agency RMBS Benchmarks are said to provide a new level of transparency in a traditionally opaque market.
The Non-QM Benchmark comprises originations since 2013 with an original loan balance exceeding $100 billion. There are 145,000 loans outstanding, totaling $60 billion.
The Prime Jumbo Benchmark comprises originations since 2013, with an original loan balance of $145 billion. There are 120,000 loans outstanding, totaling $80 billion.
Perry Rahbar, founder and Chief Executive Officer at dv01, calls the granularity provided by the benchmarks “unparalleled.”
“By breaking through a historically opaque market and offering the benchmarks at no cost, we are making the non-agency RMBS sectors more accessible to both seasoned investors seeking a deeper understanding and new investors entering the space,” said Rahbar.
Managing Director and Head of North American RMBS at Fitch, Kevin Kendra, said benchmarking is a valuable part of the FItch process.
The collaboration between the two firms is said to signify a significant step in advancing the capabilities of non-agency RMBS analysis.
