MISMO Launches New Bids Wanted in Competition Template

Caitlin Groves cgroves@mba.org.

MISMO®, the real estate finance industry’s standards organization, released the Bids Wanted in Competition standard template to facilitate the bidding process for mortgage-backed securities between mortgage originators and dealers.

The standard has achieved “Candidate Recommendation” status, which means that it has been thoroughly reviewed by a wide range of organizations and industry participants and is available for use across the industry.

Mortgage originators are increasingly using MBS execution and are distributing BWICs, a formal request for bids on a package of securities, to securities dealers. However, the information transmitted to dealers is not currently standardized. As a result, dealers are struggling to keep up with the increased volume of BWICs, which often leads to delays, lower pricing, and lower rates of participation in the BWIC process.

“The creation of this data standard will allow MBS sellers to consistently present BWIC data to dealer desks to facilitate increased accuracy, liquidity, and rapid pricing by the dealers for the BWIC lists,” said Seth Appleton, President of MISMO. “Development of this tool is part of MISMO’s ongoing efforts to increase efficiency across the mortgage finance industry.”

MISMO’s work to solve key business challenges is made possible due to lender support of the MISMO Innovation Investment Fee. For more information about MISMO and how to join, visit mismo.org.