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The Mortgage Industry Standards Maintenance Organization (MISMO) on Thursday announced it is seeking comment on a new Bids Wanted in Competition (BWIC) dataset, which allows mortgage originators and dealers to automate the bidding process for mortgage-backed-securities (MBS).
Originators are increasingly using MBS execution and are distributing BWICs, a formal request for bids on a package of securities, to securities dealers, but the information transmitted to dealers is not currently standardized, MISMO said.
As a result, dealers struggle to keep up with the increased volume of BWICs, which often leads to delays, lower pricing, and lower rates of participation in the process, it said.
“Standardizing this data, based on the MISMO BWIC template, will allow industry professionals to accelerate and enhance the accuracy of their trade execution through automation — ultimately increasing the number of BWICs processed,” MISMO said in a news release.
The comment period allows those who participated in the proposals at least 60 days’ notice before the final release to review and disclose any applicable patent rights (as defined by MISMO’s 2018 Intellectual Property Rights Policy), the organization said.
MISMO said it requests that any organization that may have any patent or patent applications or other intellectual property rights that might be infringed upon by an organization that uses or is compliant with the proposed MISMO products to disclose them in writing at this time. All comments and disclosures are due by Jan. 2, 2023, and should be directed to [email protected]
MISMO’s work to solve key business challenges is made possible by lender support of its Innovation Investment Fee.
MISMO develops essential standards to enable the real estate finance industry's digital future. Through MISMO, all mortgage stakeholders can collaborate, innovate, and prosper by creating standards to improve efficiency, reduce costs, and enhance the overall mortgage experience.