MISMO, the real estate finance industry’s standards organization, is standardizing the bid-wanted in competition (BWIC) dataset format to facilitate accuracy, liquidity and rapid pricing for agency mortgage-backed securities (MBS) transactions.
More lenders are choosing MBS execution than ever before and are distributing BWICs, a formal request for bids on a package of securities, to securities dealer desks. Currently, the information transmitted to dealers is not standardized; as a result, dealers are having trouble keeping up with the increased volume of BWICs, which can lead to delays, lower pricing and less participation in the BWIC than desired.
The new MISMO development workgroup will create a standard dataset for MBS sellers to use to present BWIC data to securities dealer desks to improve data quality, accuracy, timeliness and pricing of related BWIC transactions going forward.
“MISMO is ready to collaborate and engage with lenders and dealers to create a standard format that allows for the presentation of stable and consistent data leading to a consistent, repeatable BWIC format,” says Seth Appleton, president of MISMO. “This will allow the trading desks to process more BWICs, increasing industry participation that allows for more competitive pricing and higher volumes.”
The BWIC workgroup will conduct regular meetings via conference call. This group is expected to exist for approximately one year or until it completes its mandate.
