BNY is putting forward new safeguards for an ABS market of roughly 1 trillion dollars by creating a shared registry, VeriCORE, to consolidate data on US consumer loans alongside asset-backed securities. The Structured Finance Association helped set up the effort, and the plan is for market participants to track transactions from the start of issuance through later trading.
BNY is working with Snapdocs, which focuses on mortgage closing technology, to roll out the platform next year. The goal is to cut reliance on patchy datasets and spreadsheet tie outs, and to widen transparency across consumer lending and securitization. Snapdocs CEO Michael Sachdev called this kind of backbone for the US consumer lending system "needed for decades."
VeriCORE will begin with auto loans and leases and intends to add solar and equipment financing over time.
The initiative follows industry calls to fix systemic gaps exposed last year by two headline cases: Tricolor Holdings, a subprime auto lender, suffered a collapse, and a separate First Brands Group situation involved fake collateral. Tricolor's unraveling, in particular, boosted demand for firms that check collateral exists and is not pledged twice, after a small group of people made thousands of overdue auto loans look current by tweaking numbers in Excel.
Around the same period, First Brands faced scrutiny over fake collateral and was accused of orchestrating an alleged multi billion dollar fraud that saddled lenders with heavy losses. The episode riveted Wall Street, and Jamie Dimon, JPMorgan Chase & Co.'s chief executive officer, warned there was likely more than one "cockroach," prompting bankers and investors to take a fresh look at securitization fine print.
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Kevin Weeks, who leads global client coverage for BNY's corporate trust unit, said, "The ABS market needs certainty about who owns an asset and whether that ownership can be proven." His follow up: "By bringing together registry infrastructure and digital collateral capabilities, VeriCORE can give market participants stronger tools to verify information that today may be difficult to see in one place."
According to the organizers, the registry will offer greater visibility into collateral and aims to help "prevent and detect fraud." It is built to reduce fragmented information and hand keyed checks while creating a single lens on ownership and deal data.
The bottom line: better pipes for ownership and collateral data could trim uncertainty in consumer loan securitizations, starting with autos and leases and expanding from there. For your portfolio, that translates to clearer audit trails in a market JPMorgan estimates at more than US$800 billion outstanding as of June 2026, and potentially earlier identification of problems that used to hide in scattered records.
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