Agency MBS certainly dominate the market today in many respects, but as one aspect of the recent strategic plan for the GSEs highlights, the private-label market can be considered ahead of them in terms of loan-level disclosure and it is time for that to change.

The private-label MBS market has provided more extensive information than the GSEs in this area to date because “if you're selling credit risk [as opposed to a guarantee] directly to investors, then obviously investors are going to have to do more extensive analysis of the underlying portfolio,” noted Fitch managing director Rui Pereira, when asked about the comparison.

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