Complimentary industry webinar on new Bid Tape AOT loan sale executions will be held October 11, 2018 at 11AM Pacific
SAN DIEGO, Calif, Oct. 5, 2018 – Mortgage Capital Trading, Inc. (MCT®), a leading mortgage hedge advisory and secondary marketing software firm, announced that new investor bid tape assignment-of-trade (AOT) loan sale executions are now available for sellers using its Bid Auction Manager (BAM®) whole loan trading platform. These new executions will benefit from automation of the required Tri-Party Agreement, significantly improving accuracy and efficiency for what is already a game-changing delivery option for the secondary market.
The most recent investor to announce the availability of a bid tape AOT program is Amerihome Mortgage Company, who began the process of opening the execution to approved sellers as of Monday, October 1, 2018. MCT is also proud to join PennyMac Loan Services’ bid tape AOT pilot program, with a launch date for MCT mutual clients tentatively slated for October 8, 2018.
Offering a bid tape AOT loan sale delivery option has rapidly become a priority for leading correspondent investors. This new execution combines the granularity of price available via bid tape with the cash benefits of assigning the trade, which have historically been mutually exclusive. According to Chief Operating Officer Phil Rasori, “Under the right conditions, bid tape AOT offers a prescriptive economic value over other executions. For this and other reasons, we’re seeing widespread interest and rapid adoption among our lender clients.” The benefits and challenges of these new bid tape AOT executions will be presented in a complimentary industry webinar hosted by Mr. Rasori on Thursday, October 11, 2018 at 11:00 a.m. PDT.
In August 2018, MCT released a first-of-its-kind technology to automate the Tri-Party Agreement required between lenders, investors, and broker-dealers during AOT transactions in the secondary market. This requirement was one of the final hurdles in the AOT process. Manual completion of these agreements for each transaction was not only extremely inefficient, but it also introduced additional risk into the process via the potential for data entry discrepancies.
“Before the Tri-Party automation, I had to write in all the fields, print and attach all the confirms, sign, scan, and send for every AOT,” said Andrew Stringer, Director of Secondary/Capital Markets at First Bank. “Without the Tri-Party automation, I probably wouldn’t bother with bid tape AOT transactions very often, because the time cost might outweigh the pickup.”
After beta testing bid tape AOT with select Wells Fargo sellers early in 2018, MCT rolled out the execution across their award-winning Bid Auction Manager (BAM) loan sale best execution platform in May. Lenders or investors interested in learning more about bid tape AOT executions are invited to join MCT for a complimentary industry webinar on Thursday, October 11 at 11:00 a.m. PDT hosted by Phil Rasori, COO. MCT will also be available for in-person meetings and demonstrations at the MBA’s Annual Convention & Expo, held October 14-17, 2018 in Washington, D.C.
Founded in 2001, Mortgage Capital Trading, Inc. (MCT) has grown from a boutique mortgage pipeline hedging firm into the industry’s leading provider of fully-integrated capital markets services and technology. MCT offers an array of best-in-class services and software covering mortgage pipeline hedging, best execution loan sales, outsourced lock desk solutions, MSR portfolio valuations, business intelligence analytics, mark to market services, and an award-winning comprehensive capital markets software platform called MCTlive! MCT supports independent mortgage bankers, depositories, credit unions, warehouse lenders, and correspondent investors of all sizes. Headquartered in San Diego, California, MCT also has offices in Philadelphia, Santa Rosa, Los Angeles and Dallas. MCT is well known for its team of capital markets experts and senior traders who continue to provide the boutique-style hands-on engagement clients love. For more information, visit https://mct-trading.com/ or call (619) 543-5111.
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Mortgage Capital Trading