Experian to Provide Consumer Credit Data to S&P
Information services firm Experian formed an alliance with Standard & Poor's Fixed Income Risk Management Services (FIRMS) to provide consumer credit information for loan-level mortgage-backed securities (MBS) surveillance. Experian will connect its consumer credit data with the residential MBS loan-level data feed product from FIRMS, an analytics and research unit separate from S&P's ratings business. “Securitized loan investors need to be able to drill down to the foundation of each individual loan in their portfolios to gain a truly comprehensive picture of their risk exposures,” said David Goldstein, managing director at FIRMS. “Through our partnership with Experian, we will be able to provide investors with an amazing level of granularity on the fundamental risks in each loan and the ability to benchmark their portfolios against this data.” An Experian spokesperson told HousingWire the alliance will increase transparency of RMBS and provide risk exposure data to give investors an idea of the propensity for default. The consumer credit data will not be individualized, but instead provided on an aggregated basis, according to the source. “The goal of our collaboration is to provide investors with the transparency needed to value structured finance products and to make more informed buy and sell decisions,” said Ethan Klemperer, senior vice president and general manager at Experian Capital Markets. “Our partnership with Standard & Poor’s is a critical step in improving market efficiencies needed to restore liquidity and investor confidence.” Write to Diana Golobay.