We in the Commercial Mortgaging Industry Standards Maintenance Organization (C-MISMO) have been trying to come up with our strategic goals for 2011. As a starting point to determine these goals, we are using the results of a 2010 survey the MBA commissioned by the Vertical Industry Standards and Technology Adoption (VISTA) project. The survey basically asked industry participants if Commercial MISMO standards were being adopted and, if not, why not.
The survey concluded that MISMO standards were NOT being adopted because of several factors including:
With so little MISMO XML use by the industry, we decided we need a “go for broke” strategy to sell the benefits of XML. We are going to host a “Data Summit” at the MBA Servicing and Technology Conference in Chicago in May. The idea is to invite key industry players to a forum where we discuss the benefits of XML standards and try and get buy-in for XML adoption.
The key players consist of lenders, servicers, investors, service providers and software providers. We’ve been making a list of who should be there, and we are splitting up the calls based on previous relationships. I have been given several names to arm twist — I mean invite — to this data summit so, if you get a call from me, be nice.
The reason I call this a “go for broke” move: What happens if we invite these key players and no one says yes (or even shows up)? If MISMO can’t convince the key players that XML standards make sense, then what is the purpose of C-MISMO, and should we keep up the effort? In case no one uses the standards, and if we can’t build momentum at the Data Summit, we discussed putting C-MISMO on ice until either the market’s perceived value of XML increases or regulatory compliance demands XML adoption.
It will be interesting to watch this play out. Updates to follow.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2011-03-14 19:28:422020-09-16 19:30:29Why are MISMO standards not being adopted?
Last week’s MBA CREF conference was more subdued than January’s CMBS-centric CREFC conference. While the mood was cautiously optimistic — and definitely better than last year — the MBA CREF conference lacked the jubilation expressed at CREFC.
That’s because CMBS was absolutely dead last year. Opening the coffin on the asset class has put most players in a celebratory mood, and that showed at the CREFC conference.
The people that go to the MBA CREF conference represent companies from a broader part of the real estate lending business, not just CMBS. To put it into perspective: Attendance was about 2,500 — about twice that of the CREFC conference.
These companies have been hurting for sure, but they were not put into the grave like CMBS was. The agency business (Fannie/Freddie/HUD) has actually been thriving, the life companies beat the CMBS market back in, and the FDIC is liquidating banks providing at least some deal flow.
Despite complaints about lack of funding for smaller deals, I would describe the MBA CREF mood as being cautiously optimistic but not yet jubilant.
2012 CREF in Atlanta
The biggest buzz at the conference was the MBA’s announcement that the 2012 MBA CREF conference will be in Atlanta.
There has been a history of the conference switching every year between a west coast city (San Diego) and a east coast city (Orlando).
Last year they tried Las Vegas, which was fun but a disaster for networking: Vegas swallows up a conference of only 2,500 people; you never saw anyone. But at least it was Vegas.
Needless to say, no one I spoke with was happy about going to Atlanta next February.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2011-02-17 19:30:472020-09-16 19:31:40MBA not as upbeat as CREFC
I attended the annual CREFC CMBS Investor conference in Washington DC last week, where the mood was definitely upbeat. So positive, in fact, that some people were already warning about slipping underwriting standards!
Headed back to South Beach
Perhaps the biggest sign that the market is back was the announcement that the 2012 conference will move back to South Beach from Washington DC. The conference had been in Miami for years. but moved to DC after the crash for two reasons:
1) to be closer to the policy makers and
2) to avoid the appearance that bailed out banks were sending their people to a party in Miami Beach. Now that everything is back, South Beach is back on the agenda.
The White House
Dinner with the CREFC president
My personal highlight of the trip was a dinner where I sat next to John D’Amico, the acting CEO of CREFC and the president elect for 2011–2012.
My friend Jim Cooke, who is a lawyer at Ballard Spahr and chair of Commercial MISMO, invited me to his firm’s dinner where he had John sitting between the two of us. We spent the dinner talking about the disclosure of rent rolls to all investors and the value of XML.
John was a B Piece buyer pre 2009 and certainly has a good understanding of credit. When he was buying below investment grade bonds, they always had access to the rent rolls, so he was sympathetic to sharing the same data with the investment grade bond buyers.
By comparing XML to a “tab” in a Word document, he was able to understand the essence of XML versus Excel and understood how XML would be needed to move rent rolls.
We also talked about the value MISMO standards could bring in that process. While I think we, at some level, converted John to XML based disclosure, the fact is he does not have that much control over CREFC final policy. Nonetheless, he is a key person to get on board, and the dinner was fun.
Snow at Reagan Airport.
Other highlights from the conference
2011 Volume The “pros” were projecting CMBS originations to triple or quadruple from $10 billion in 2010 to $30 or $40 billion in 2011. While the overall mood was positive, some worry there are too many lenders back in the market, and that competition for good loans is creating a “race to the bottom” in underwriting standards.
Privately, there was talk that 2011 might not be as robust as everyone thought (maybe $20 to $30 billion) but, overall, folks were upbeat and positive on 2011 prospects.
Regulatory Reform
With no word from the SEC on the securitization reform known as Reg AB (rules expected soon), the focus was on GSE reform and what the future of Fannie, Freddie and HUD might be.
Most agreed there would not be meaningful GSE reform until after the next presidential election. That being said, two distinct views of the future were offered by two guest speakers (Senator Charles Schumer, a NY Democrat and a Rep Scott Garrett, a NJ Republican).
Senator Schumer spoke about the importance of the GSEs. He believes they serve a critical function for both residential and apartments, and they should remain in place with the full backing of the U.S. government.
Representative Scott Garrett (R-NJ) went the other way with it and stated the Republicans favor privatizing the GSE and getting the government out of the housing business altogether. Not a lot of common ground there.
Parties
The parties were back! Lots of different lenders/servicers had parties and dinners, the bars were open and the buffets were full of shrimp and other good food. Last year, there were far fewer parties — another sign of the good mood this year.
Attendance
Conference attendance was up with over 1,200 people attending compared to a low of 700 people in 2009 and a high of the 1,600 people at the height of the market in January 2007.
Speakers
The keynote speaker was Tucker Carlson from Fox News. Being from San Francisco, I do not usually watch Fox News but he gave a great talk. Funny and poking fun of everyone from the left and the right. He talked mostly about politics and predicted that Chris Christie, the governor of New Jersey, would be the Republican nominee for president.
Travel
Another good reason to move the conference back to South Beach is the weather. I tried to leave DC on Wednesday but got caught up in one of the many East Coast snow storms. After hours at the airport, a missed meeting in Minneapolis, and a full day of traveling the next day, I got back to sunny California.
I am off to the MBA conference in San Diego next week and will report back after that conference.
Back home. The view from Mt. Tamalpais.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
Why are MISMO standards not being adopted?
/0 Comments/in Industry standards /by jimflahertyWe in the Commercial Mortgaging Industry Standards Maintenance Organization (C-MISMO) have been trying to come up with our strategic goals for 2011. As a starting point to determine these goals, we are using the results of a 2010 survey the MBA commissioned by the Vertical Industry Standards and Technology Adoption (VISTA) project. The survey basically asked industry participants if Commercial MISMO standards were being adopted and, if not, why not.
The survey concluded that MISMO standards were NOT being adopted because of several factors including:
• cost/benefit
• down market
• lack of investor demand
• no software vendor support
• existing standards too complicated
Download the complete VISTA survey results.
Data Summit
With so little MISMO XML use by the industry, we decided we need a “go for broke” strategy to sell the benefits of XML. We are going to host a “Data Summit” at the MBA Servicing and Technology Conference in Chicago in May. The idea is to invite key industry players to a forum where we discuss the benefits of XML standards and try and get buy-in for XML adoption.
The key players consist of lenders, servicers, investors, service providers and software providers. We’ve been making a list of who should be there, and we are splitting up the calls based on previous relationships. I have been given several names to arm twist — I mean invite — to this data summit so, if you get a call from me, be nice.
The reason I call this a “go for broke” move: What happens if we invite these key players and no one says yes (or even shows up)? If MISMO can’t convince the key players that XML standards make sense, then what is the purpose of C-MISMO, and should we keep up the effort? In case no one uses the standards, and if we can’t build momentum at the Data Summit, we discussed putting C-MISMO on ice until either the market’s perceived value of XML increases or regulatory compliance demands XML adoption.
It will be interesting to watch this play out. Updates to follow.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com
www.backshop.com
MBA not as upbeat as CREFC
/0 Comments/in Industry news /by jimflahertyLast week’s MBA CREF conference was more subdued than January’s CMBS-centric CREFC conference. While the mood was cautiously optimistic — and definitely better than last year — the MBA CREF conference lacked the jubilation expressed at CREFC.
That’s because CMBS was absolutely dead last year. Opening the coffin on the asset class has put most players in a celebratory mood, and that showed at the CREFC conference.
The people that go to the MBA CREF conference represent companies from a broader part of the real estate lending business, not just CMBS. To put it into perspective: Attendance was about 2,500 — about twice that of the CREFC conference.
These companies have been hurting for sure, but they were not put into the grave like CMBS was. The agency business (Fannie/Freddie/HUD) has actually been thriving, the life companies beat the CMBS market back in, and the FDIC is liquidating banks providing at least some deal flow.
Despite complaints about lack of funding for smaller deals, I would describe the MBA CREF mood as being cautiously optimistic but not yet jubilant.
2012 CREF in Atlanta
The biggest buzz at the conference was the MBA’s announcement that the 2012 MBA CREF conference will be in Atlanta.
There has been a history of the conference switching every year between a west coast city (San Diego) and a east coast city (Orlando).
Last year they tried Las Vegas, which was fun but a disaster for networking: Vegas swallows up a conference of only 2,500 people; you never saw anyone. But at least it was Vegas.
Needless to say, no one I spoke with was happy about going to Atlanta next February.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com
www.backshop.com
Upbeat mood at CREFC conference
/0 Comments/in Industry news /by jimflahertyI attended the annual CREFC CMBS Investor conference in Washington DC last week, where the mood was definitely upbeat. So positive, in fact, that some people were already warning about slipping underwriting standards!
Headed back to South Beach
Perhaps the biggest sign that the market is back was the announcement that the 2012 conference will move back to South Beach from Washington DC. The conference had been in Miami for years. but moved to DC after the crash for two reasons:
1) to be closer to the policy makers and
2) to avoid the appearance that bailed out banks were sending their people to a party in Miami Beach. Now that everything is back, South Beach is back on the agenda.
The White House
Dinner with the CREFC president
My personal highlight of the trip was a dinner where I sat next to John D’Amico, the acting CEO of CREFC and the president elect for 2011–2012.
My friend Jim Cooke, who is a lawyer at Ballard Spahr and chair of Commercial MISMO, invited me to his firm’s dinner where he had John sitting between the two of us. We spent the dinner talking about the disclosure of rent rolls to all investors and the value of XML.
John was a B Piece buyer pre 2009 and certainly has a good understanding of credit. When he was buying below investment grade bonds, they always had access to the rent rolls, so he was sympathetic to sharing the same data with the investment grade bond buyers.
By comparing XML to a “tab” in a Word document, he was able to understand the essence of XML versus Excel and understood how XML would be needed to move rent rolls.
We also talked about the value MISMO standards could bring in that process. While I think we, at some level, converted John to XML based disclosure, the fact is he does not have that much control over CREFC final policy. Nonetheless, he is a key person to get on board, and the dinner was fun.
Snow at Reagan Airport.
Other highlights from the conference
2011 Volume
The “pros” were projecting CMBS originations to triple or quadruple from $10 billion in 2010 to $30 or $40 billion in 2011. While the overall mood was positive, some worry there are too many lenders back in the market, and that competition for good loans is creating a “race to the bottom” in underwriting standards.
Privately, there was talk that 2011 might not be as robust as everyone thought (maybe $20 to $30 billion) but, overall, folks were upbeat and positive on 2011 prospects.
Regulatory Reform
With no word from the SEC on the securitization reform known as Reg AB (rules expected soon), the focus was on GSE reform and what the future of Fannie, Freddie and HUD might be.
Most agreed there would not be meaningful GSE reform until after the next presidential election. That being said, two distinct views of the future were offered by two guest speakers (Senator Charles Schumer, a NY Democrat and a Rep Scott Garrett, a NJ Republican).
Senator Schumer spoke about the importance of the GSEs. He believes they serve a critical function for both residential and apartments, and they should remain in place with the full backing of the U.S. government.
Representative Scott Garrett (R-NJ) went the other way with it and stated the Republicans favor privatizing the GSE and getting the government out of the housing business altogether. Not a lot of common ground there.
Parties
The parties were back! Lots of different lenders/servicers had parties and dinners, the bars were open and the buffets were full of shrimp and other good food. Last year, there were far fewer parties — another sign of the good mood this year.
Attendance
Conference attendance was up with over 1,200 people attending compared to a low of 700 people in 2009 and a high of the 1,600 people at the height of the market in January 2007.
Speakers
The keynote speaker was Tucker Carlson from Fox News. Being from San Francisco, I do not usually watch Fox News but he gave a great talk. Funny and poking fun of everyone from the left and the right. He talked mostly about politics and predicted that Chris Christie, the governor of New Jersey, would be the Republican nominee for president.
Travel
Another good reason to move the conference back to South Beach is the weather. I tried to leave DC on Wednesday but got caught up in one of the many East Coast snow storms. After hours at the airport, a missed meeting in Minneapolis, and a full day of traveling the next day, I got back to sunny California.
I am off to the MBA conference in San Diego next week and will report back after that conference.
Back home. The view from Mt. Tamalpais.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com
www.backshop.com