Page 345 - 2019 6th AFIS & ASMMA

potential transactions, they talked about that they have a great idea that » Panelist | Simon Walley
the originator loans, and then sells to the capital market by issuing the Very little confidence. I think one of the useful roles the institutions
RMBS. It is very sensitive issue, because the mortgage sales without risk like Olivier's can play, or whether it's KHFC here or Cagamas in
retention in the origination model was obviously the key driver for the Malaysia, is to set standards. You want to standardize the mortgage
global financial crisis. products, have the same documentation, the same underwriting rules,
which allows you to have collected data on a comparable basis and
The second topic I'd like to share about China is the data transparency. build it up. I think the other thing that we often struggle with is the pure
Earlier, Matthias and Simon talked about the importance of data mortgage data. You also need to understand the market you're in, so you
transparency, although in different contexts. Matthias talked about it need data on house price and housing production. These are often what
in the affordable housing, while Simon talked about it in the housing the countries struggle with, but without the data, it is very difficult for
financing. I think the good thing about China is, for the mortgage the ministries and the authorities to make good housing policy based Session II
originator to issue RMBS, those mortgage originators need to file the on good judgments. We've seen in many countries, and Thailand can
registration report to obtain an issuance quota from the regulators. particularly be a good example. There's some delegates here. In Thailand,
In those registration reports, they need to provide up to ten-years they set up what we call a housing observatory. When we don't have the
history data. As a rating analyst, I remember when I worked on the first data, we're kind of making policy blindly. Let's see how we can collect it,
Taiwanese RMBS transaction, later Hong Kong deals and earlier days the where it's going to be the municipalities collecting housing production
Korean transactions, obviously we need to get the originators-specific data. Let's see what's the best way we can do to build a house price index.
data one by one. It's hard to have a big picture on the overall industry; In Thailand, I think they put up a big institution, which enabled them to
the performance, the trend, not to mention the peer comparison. So, we make the right decisions.
had the privilege to get the confidential and non-material information
from each originator. But again, it was quite different then. Now I work
in China, before we are engaged to work on any transaction, I have like » Panelist | Matthias C. Helble
20 mortgage originators and all the top six mortgage originators in China I'm a bit more optimistic about the data, because now we have lots
they follow the RMBS registration report and they provided more than of data on the internet. It's quite easy to download the information. For
almost ten-years history data. So, before we talk with them, we rate the example, at ADB last year, we downloaded 20,000 housing prices within
RMBS transaction sponsored by the largest Chinese mortgage originator; Manila. We also could locate the household exactly by the tree, because
we already have a very deep understanding on them, their performance, it was also available online. So, using these online platforms, we can
with the peer comparison. actually gather a lot of information. Of course, we have to be careful
how to interpret it. This market might be catered to a certain group, but
I think, for example, this Google Maps, which gives us data on traffic
» Moderator | Henny Sender flows or on restaurants, also can give us a very good idea of the actual
Jerry, I'm going to stop you there for one minute to talk about data. income of neighborhoods, which can help to assess certain risks or
Then I'm going to ask you a question from the floor. Both of you have profiles of certain groups. So, there's already a lot of data that can actually
mentioned the importance of infrastructure and the importance of data. be gathered at a relatively low cost.
How confident are you that there is good information available in the
markets that you have experiences of?

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