- Data library covers 65% of the market’s securitized Prime Jumbo issuance since the beginning of 2019
- Benchmark analysis indicates prime jumbo impairments nearly back to pre-pandemic levels (download report here)
- dv01 now covers $3.5trn of CRT, Non-QM and Prime Jumbo mortgage loans totaling 327 securitizations
NEW YORK – 08/09/2021 –dv01, a leading capital markets fintech company driving technological innovation and loan-level transparency in structured finance, announced today that it has launched its Prime Jumbo Benchmark to provide investors and issuers actionable insights into the health of the flourishing market.
The benchmark consists entirely of prime jumbo securitization data available on the dv01 platform, representing 44,382 loans with a total original balance of over $36 billion. The new offering will track the performance of approximately 65% of the market’s securitized prime jumbo issuance since the beginning of 2019, and going forward, will onboard all new prime jumbo deals to the platform at the point of issuance in real-time.
COVID-19 has had an immense impact on housing prices in the past year, increasing the demand for jumbo mortgages and insights on the underlying loan performance. With dv01’s benchmark, investors and issuers alike will be able to more efficiently slice data by loan characteristics, identify origination trends, compare individual deals against a reference point, and better analyze consumer behavior to more easily navigate the sector.
“A performance benchmark is an essential component to driving transparency and confidence in jumbo issuance,” said Perry Rahbar, Founder & CEO of dv01. “We have partnered with leading mortgage issuers over the past three years and their adoption of our modern data and reporting offerings is testament to the impact we have in facilitating smarter investment and issuance decisions. With the launch of this benchmark, we’re continuing to make good on our promise to help prevent a repeat of the 2008 global financial crisis.”
Using the benchmark as a market proxy, dv01 has also released a research report illustrating how issuance of prime jumbo loans slowed during the pandemic but simultaneously increased in credit quality across virtually every collateral attribute—indicating a risk-off sentiment from issuers during uncertain times. In addition, the report finds that unlike the non-QM and CRT markets, total impairments in prime jumbo have virtually returned to pre-pandemic levels. Overall prepayments are also shown to have declined in 2021 from their record pace in 2020, keeping in line with rising mortgage rates.
The Prime Jumbo Benchmark is now available to dv01 Market Surveillance clients and trial users.
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NOTES TO EDITORS
Founded in 2014, dv01 is the leading capital markets fintech driving technological innovation and loan-level transparency in structured finance. To date, dv01 has provided securitizations reporting and analytics on $4 trillion in notional balance, consisting of 90 million loans and 700 securitizations across consumer unsecured, point of sale, small business, student loans, auto, and both agency and non-agency mortgages.