Rockstead, the leading due diligence and business review provider, has called on lenders and regulators to address weak ESG RMBS disclosure criteria and to increase the quality and quantity of disclosure requirements.
Brian Pitt, CEO at Rockstead said: “There is a real and measurable demand from investors for green mortgages, but there remains a significant knowledge gap as to what makes a mortgage ‘green’!”
He continues “Our analysis shows that the lack of clear, unified standards continue to hold back a wider adoption of green RMBS. These failings are compounded by the fact that lenders do not collect and record data at an individual loan level as it has not previously played a part in the credit risk assessment. If green RMBS are ever going to match the investor demand, both lenders and regulators need to address the weak ESG data collection processes and increase the quality and quantity of data held.”
