Each participating institution was asked to supply detailed information, in a standardized format, about the composition of its residential real estate portfolios, including breakdowns by type of product, loan-to-value ratio, FICO score, year of origination, and so on. These data allowed supervisors to consistently estimate potential future losses across firms using a variety of independently constructed models.
Some of these models were already in use to monitor risk as part of the ongoing supervisory oversight process, while others were developed or refined specifically for the capital assessment exercise.