Sector developments and company hires

CRT analytics
dv01 has launched a credit risk transfer market surveillance offering, which adds US$1.8trn of Freddie Mac STACR and Fannie Mae CAS securitisations to its loan-level data analytics platform. The service allows investors to analyse historical performance of CRT deals individually or combined, perform whole market analysis and run cashflow scenarios.

MPL platform charged
The US SEC has ordered Prosper Funding to pay a US$3m penalty for miscalculating and materially overstating annualised net returns to more than 30,000 investors on individual account pages on its website and in emails soliciting additional investments. According to the order, from approximately July 2015 until May 2017, the marketplace lending platform excluded certain non-performing charged-off loans from its calculation of annualised net returns – resulting in many investors deciding to make additional investments. The order also finds that Prosper failed to identify and correct the error, despite its knowledge that it no longer understood how annualised net returns were calculated and despite investor complaints about the calculation.

Platinum HECMs
Investors in Ginnie Mae securities backed by HECMs can now take advantage of a new form of execution - the Home Equity Conversion Mortgages Backed Security (HMBS) Platinum securitisation channel. The platform is designed to ease the administrative costs of holding multiple HMBS securities and enhance market liquidity. Platinum products can be created using fixed-rate MBS (15- and 30-year mortgages), WAC ARM and jumbo-only fixed mortgages.