Mortgage Finance Vets Launch RMBS Loan-Level Data Firm

A team of mortgage finance and investment management veterans has announced the formal launch of a new company, BlackBox Logic LLC, providing a database of loan-level collateral underlying non-agency residential mortgage-backed securities (RMBS) for investors, broker/dealers and researchers.

The company has simultaneously announced the availability of its loan-level data aggregation service, called BBx Data, which covers the jumbo A, subprime and Alt-A markets. The service includes more than 7,200 RMBS, 21 million loans and nearly 600 million remittance records, dating back to 1999, BlackBox Logic says.

The new firm has offices in New York and Bethesda, Md., and is headquartered in Denver. BlackBox Logic is majority owned by Braddock Holdings Co., the private equity affiliate of Denver-based Braddock Financial Corp. Braddock is a Securities and Exchange Commission-registered investment advisor.

The BlackBox Logic management team is led by Larry Barnett, CEO; Wyck Brown, director of marketing and new business development; Bill Pugh, chief technology officer; Marty Schwartz, lead data modeler; and Dmitri Raskes, director of e-commerce solutions.

BlackBox Logic was founded in 2007; the team spent more than two years designing and testing a beta version of BBx Data with RMBS researchers, investors and broker/dealers.

"We use proprietary data cleansing logic to clean and verify each origination and payment record," says CEO Barnett. "The result is more complete, more accurate data, to meet even the most demanding user's needs."

On average, by standardizing formats and populating data gaps, BBx Data's cleansed data provides a 37% improvement on important loan characteristics when compared to unformatted, raw data, BlackBox Logic says. BBx Data users have the option of receiving both cleansed and raw data sets, putting decision-making power back into data users' hands.

BBx Data utilizes a dedicated loan modification processing engine to provide users with coverage of current and retrospective modifications. Using proprietary logic, the BBx Data production team was able to identify more than 60,000 loan modifications not identified by servicers or reported by trustees, the company says.

SOURCE: BlackBox Logic


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