Weekly Technology Improvement Series:
Pricing Granularity
Published 9/10/2021
MCT Marketplace features recent improvements on both the buy side and the sell side.
One of the primary functionality enhancements is in the Autobid software, which has new features for granularity on pricing and margins on bids.
For certain types of loans, investors can now easily manage pricing for sellers via new margining features on loans with specified value payups that allow the user to define in either bps or as a % of the total payup.
For example, maybe you want 50 bps and 50% of the spec payup on a particular loan.
Specs for Fannie, Freddie, and GNMA are handled in different ways and the new functionality in MCTlive! provides users the ability to load their own spec payup grid or use the derived payups to margin off of.
You can now build out your own programming rules. So, for example, on a Freddie cash retained loan, you can now choose from all applicable spec values and get as granular as you want on the filters.
It will recalculate daily pickup as the spec values get updated. It will also display a hit to price on a global level, such as for a low loan amount, and can adjust on a client level for loan attributes.
Our new multifactor rule builder for margins and overlays really drives home your point of being a self-managed, very sharp pricing tool for buyers.
This tool allows you to combine any attribute to define when a rule should apply. So, if you want a 5pt hit on loans with a PIW, TX, < 640 FICO, > 80% LTV, MH, for 5 of your sellers. You can do that!
In an effort to inform you of these real time enhancements this series will review the latest MCTlive! innovations and functionality updates. Join our newsletter to be updated on new releases.
This series focuses on technology updates to MCTlive!, MCT’s award-winning loan pipeline management software.
MCTlive! Features include:
- 100% Cloud-Hosted, Web-Based, Real-Time Functionality
- Multidimensional Pull-Through Analytics
- MCT Marketplace loan trading exchange
- Electronic TBA Trading
- Rapid Commit for Agency Delivery
View All Rasori’s Relentless Releases
MCT Integrates with the Fannie Mae Connect Whole Loan Purchase Advice Seller API
MCT’s award-winning capital markets platform, MCTlive!, is now integrated with the Fannie Mae Connect™ Whole Loan Purchase Advice Seller API. This API connection allows MCT Mark-to-Market and Hedge Accounting Reports to be updated with Fannie Mae purchase data instantly, instead of waiting to run reports through a Loan Origination System (LOS).
The MCT Review: Market Commentary Week of March 7
FNCL 3.0s opened the day at 101-03, hit a high of 101-12+ just prior to 12 noon, and then we drifted lower in the afternoon to close at 101-04. We saw some intraday reprices for the better in the late morning and then some in the other direction later in the afternoon. We are now about 6 ticks lower vs. the Friday close of 101-04 but do not expect much from TBA hedge flows today. March issuance is about ~2.0bln behind the pace of February when you compare the first four business day of March to those of February. The big drop occurred in February and I would now expect the attrition to be a few billion/month.
How An Investor Can Offset Declining Volumes in a Rising Rate Environment
Buying in a rising rate environment can be difficult to maneuver, especially when volumes are declining and margins remain pressured. Strategy is of the utmost importance so ensuring you are leveraging the newest technologies available is key to bidding in a smart and efficient way so as to maximize your potential. In this post, we will review strategies for how investors can maximize their market share in a rising rate environment.
The MCT Review: Market Commentary Week of February 22
We’ve seen lighter supply thanks to the Russia/Ukraine headlines. The market has ultimately gained ground with FNCL 3.0s starting at 100-06+ and closing at 100-15. We did see some negative reprices, then the Russia/Ukraine headlines moved the bond market higher into lower yields and that brought better reprices. We currently have FNCL 3.0s at a lower closing level so don’t expect much.
“Can’t Go” and “Must Go” Investors – Paul’s Tip of the Week
In Paul’s Tip of the Week, we look at how through custom eligibility and ready for sale identification a user can streamline their best ex in MCTlive!
MCT Whitepaper: Understanding and Preparing for Changes in the Mortgage Market
The mortgage origination space is one of the most cyclical industries in the U.S. economy. Interest rates, origination volume, and profit margins are constantly shifting based on a variety of factors, and it takes an efficient and intelligent operation to stay on top of it all. Most lenders react, rather than act, to week by week or month by month changes in the environment. We advocate acting decisively and in a calculated fashion. This paper will outline a simplified model illustrating mortgage market stages and how lenders can set a foundation of resilience to changing markets.
Top Metrics Every Investor Should Know
During times of rising rates and dropping loan originations, investors must consider additional strategies to ensure they’re reaching their market share goals. To do this, MCT’s InvestorMatic Analytics reporting tool is helping investors dissect their purchasing strategies to find hidden opportunities. In this post, we review top metrics from a sample report available to our clients. To receive the full sample report! please contact us today!
Margin Management Best Practices for Mortgage Lenders
In this article, we will discuss top-level margin management strategies including 6 business intelligence inputs that are helpful for making educated margin management decisions.
MCT Webinar – Staying Prepared in a Changing Mortgage Market
In this webinar, MCT’s COO, Phil Rasori, will team up with MBA’s Chief Economist, Mike Fratantoni, to discuss how lenders can stay on top of changing market cycles in 2022.
MCT Client Webinar – MSR Asset Overview
In this webinar, MCT’s Azad Rafat and David Burruss will discuss key MSR value drivers, MSR accounting methods and how the MSR life cycle effects your balance sheet.
