Case Study: Eustis Mortgage Upgrades Loan Sales Process with BAM

In a recent discussion, one of our clients, Timothy Ieyoub, SVP of Capital Markets at Eustis Mortgage, was so excited to share how his company’s loan sale process improved after the Bid Auction Manager (BAM) introduction that we have created a case study to share his experience. We will be reviewing his before and after experience to illustrate the improvement of Eustis Mortgage’s loan sales process.

Timothy Ieyoub

SVP of Capital Markets at Eustis Mortgage

Timothy Ieyoub has been in the mortgage banking industry for over twenty years. His experience ranges from insides sales support, senior account manager, business development manager to managing partner of a nationwide wholesale lender.

Featured Quote – “Using BAM saves us 2 to 4 hours every time we do loan sales. The convenience of communication and analysis has encouraged us to send bid tapes to our full set of investors more often rather than just the top tier, resulting in a surprising pickup in some cases. We used to bid out on a 15 day delivery, but now we’ve reduced that to 7 day. Working with MCT I feel like we’re in this together – reducing risk and achieving best execution.”

 

How MCT’s Bid Auction Manager Adds Daily Value

Since BAM’s introduction and 100% investor adoption, MCT clients have discovered first-hand how this bid auction manager, within MCTlive!, adds value to the daily processes of their companies to save time, increase efficiency, ensure information security, and increase profitability.

Integrating BAM with existing lender and investor processes offers several measurable benefits. In this section, we will quickly summarize the benefits that Tim has described in his interview as being most impactful to his business.

  • Saving time with automation – Increased efficiency / avoiding mistakes / eliminate emails
  • Decrease compliance risk – Centralize communications / protect borrower NPI data
  • Increase profitability – increasing investor bidding pool / increasing loan sale pickup

 

Download Benefits of Bid Tape Management for Lenders (PDF) – View this guide to learn each of BAM’s unique benefits for Lenders to improve efficiency and profits. Your email address is required for download.

Contact us for more information or continue reading about the Eustis Mortgage case study and interview.

 

At a Glance: Eustis Mortgage Loan Sale Process Before and After BAM

 

Full Interview: Eustis Mortgage Loan Sale Process Before and After BAM

What is your loan sale process like with BAM?

I do all the committing or hedging on our side using MCTlive! and each day I watch the market and choose my time to sell. With BAM I’m able get the same loans out for pricing within minutes, which is fantastic.

Before I had to pull a bid tape together, send it out to investors then I had to pull it back in and analyze it manually which left room for mistakes. With BAM it’s just one click to send, and when it comes back all I have to do is click one more button to complete the same process that was previously time-consuming. With BAM, I can get some really nice color for the both the pricing and execution of the files which makes it really easy to understand.

When I commit back to the investors in the second step I’m able to stay in the BAM execution platform which continues the added convenience. Lastly, I have greater transparency of those loans out of my hedge position so I can clearly see where we stand in all of our positions.

One of the greatest improvements to our own loan process by using MCTlive! is the ability to complete all the steps more quickly and accurately in real time. We’re taking a process that used to take two to four hours and reducing it to less than five or ten minutes. Just being able to do that is impressive and helps us out tremendously.

What was your process like before using BAM?

Before BAM, we would pull loans for sale from our LOS and create our own kind of report to send out to investors. At the time, I would only send that bid tape out to four or five investors because we assumed that we knew which investors were competitive and which were not.

When the non-competitive reps would come in, they would ask “Why aren’t you sending us any bid tapes?” and I didn’t want to say but their pricing was just not there. It wasn’t worth the time to send out to each individual as we were doing it completely through email.

We had our own kind of a bulk distribution where we would send to a few top investors, then we would wait for those to come back. When they came back we would copy the bid prices into a master Excel sheet and then just eyeball it to see who had the winning rate. Again, I was probably only sending it out to 4 or 5 people because I knew the others weren’t as competitive.

The added value to using BAM is that I have the ability to send our bid tape out to 20 people instead of 5 because I can analyze it just as fast. Before analyzing the prices of 20 investors would take us all day long.

Do you think your pickup has increased with previously deprioritized investors that are now being brought into your best execution with BAM?

Absolutely. There was a commitment we made just the other day that I would normally shy away from because we didn’t do much business with the investor. In this instance, they were 60 basis points ahead on a $200k FHA deal and I said, “60 basis points is worth any pain and agony that my post closing department is going to give me for sending this one loan to them.” So, we committed the loan and it actually went through really smooth! It came back with a couple of suspense items and some cleanup stuff but we were actually able to get that loan purchased rather quickly.

bps in some cases

At the end I said to myself, “Hey, they may be a player! I may look at that execution more now if they are ahead.” Before BAM, I would not have tried. Sometimes that 60 basis points may end up being zero (after all the roll costs 60 days down the road) but it went through easy enough that it improved my trust for that investor. Now, I’ll definitely try this new investor even if they are only 20 basis points ahead whereas I normally wouldn’t take my chances other than my core investors. So yes, I can already see that there is going to be more pickup because I’m able to view more execution options of a more diverse investor group.

There are a pretty wide group of investors that we work with if you are on the bottom 20 out of the 50. But maybe those smaller investors have CRA considerations that they need to make that they can pay up for.

The convenience of being able to send it out to 20 people and synthesize all 20 responses without a lot of work is a good inspiration to give those other investors a try. Plus, some do say we price better in the first week in the month or the 3rd day of the second week, and you never know what day that is. By sending it out to multiple investors, you learn that.

What other features of BAM do you use?

I’m working with MCT right now to get the commitments into LendingQB which is our LOS system. This week, we are going start automating that process and that’s going to save me more time. We aren’t a big shop but some days I might have 60 commitments to put into the file. That might take an hour to an hour and a half normally. Again, you’re creating fat finger mistakes when you do things manually so the more MCT helps us to automate our processes the quicker we can get it in there.

We’ve actually had post-closers ready to ship files once they’re committed so by automating this process they’re going to be able to pull the report and we’re going to be able to ship the file faster. We used to bid out on 15 day delivery and we have increased that to a 7 day delivery. I really can attribute that to the MCT platform for increasing our efficiency. By creating these new processes we are able to execute better.

Day Delivery

Were information security or compliance concerns what interested you in BAM?

We work to do everything as securely as possible. It has definitely been a benefit because the more information that gets on those bid tapes the better the execution and BAM allows you to include all the information you need while keeping it secure. Another thing I appreciate about BAM is that MCT is creating the platform and standard for the industry. I like that it isn’t so much that the investors are controlling the game, making lenders like me work with multiple inconvenient formats and processes. That’s pretty cool.

What has your general experience been working with MCTlive! software?

We are a relatively new client but we love that everything is a live feed. To be able to keep my MCTlive! screen open up on one of my screens is key. I can see everything coming in live, I can see where my position is, I can add coverage just by plugging it in right into the system and it automatically shows me where I am on my position. MCTlive! gives me an added sense of security of where I stand whereas before it was a manual upload of a report that I had to run.

Before, we were uploading that report twice a day and every hour it could be fluctuating. MCTlive! always gives me an instantaneous position – that’s what I really value most – and I am able to act quickly on that position by adding coverage or selling loans just by clicking a few buttons. You just can’t place a value on that capability – it’s just really tremendous, it’s really exciting.

What I like about MCTlive! and MCT in general is that I can ask for things or I can talk things through. Whenever I have a question, MCT is always like “You know what? Let’s see what we can do.” It’s always a positive or it’s a “Yeah, you can do that right here!” and then I can learn something new.

I get fired up about it because it’s a platform that is unbelievable. MCT has either thought of everything I want in the platform or it’s in the works.

What has your experience been like working with the MCT team?

Paul and Rhonda are fantastic. I can email one of those two and always get a quick response. Justin and I have these Thursday calls whenever we can make it and Justin adds value to that by telling what he sees with the market and his analyses. We use MCT more for analytics for coverage and selling so Justin will provide insight for what he’s seeing on his side.

It’s like we’re in this together. It’s not just the amount of money we pay monthly for the service, we’re friends and we are going for this common goal of achieving best execution and reducing risk. We are in this together and I feel that. I appreciate the loyalty to one another.

 

Case Study Summary

Eustis Mortgage is now saving time with automation and increasing profitability with pickup due to a larger investor pool. By minimizing manual data entries and leveraging two-way LOS integration they have a more efficient process and a more accurate data set. BAM is helping drive operational success while achieving best execution.

Now that they are sending their bid tapes to a full set of investors outside of email they have saved time, increased efficiency, ensured information security, and increased profitability. Eustis Mortgage is well positioned for future growth, empowering their team with groundbreaking software.

Schedule a demo or request more information about BAM!