Loans Data Provider dv01 Launches Credit Risk Transfer Surveillance Service

Data management and analytics firm dv01 has launched a surveillance component for the credit risk transfer market to its platform, as it expands its data offerings.

The new offering will automatically download information on credit risk transfer securities from Freddie Mac and Fannie Mae.

It puts filters on top of the dataset for more accessible analytics by clients. It offers access to the historical performance of credit-risk transfer deals, and since the data integrates into the company’s larger platform, the ability to look at the mortgage market as a whole.

Perry Rahbar, founder and chief executive officer of dv01, says the intent with the new offering is to make it easier to use the large dataset.

“While there are free tools on their respective websites, we felt that these free tools were inadequate to do a deeper dive into the information,” Rahbar says. “We felt it was within our realm and our capabilities to integrate these very large datasets into our platform.”

He adds the free data offered on Fannie and Freddie’s respective websites were hard to query, so clients could not do much with the figures. The datasets will update monthly.

Credit risk transfer securities are issued by the government’s mortgage and loan companies Freddie Mac and Fannie Mae to transfer credit risk exposure stemming from loans to private firms from taxpayers. It was launched in 2013.

Using the platform, clients can analyze performance metrics and classify more than 70 deals at once.

Credit risk transfer is a $1.8 trillion market and is one of the most significant sectors of the non-agency mortgage market, with around 7.7 million individual loans. Rahbar says the dataset is too big to deal with without the means to properly filter and query it.  

Rahbar says dv01 continues to evaluate other datasets around mortgage and loans it will seek to add to its platform. The company is working on adding more issuer data for non-qualified mortgages.