InvestorMatic Program Improves Seller Experience

The InvestorMatic program certifies correspondent investors on their ability to leverage technology to improve seller profitability, efficiency, and security on their loan sales. The certification process provides a Bronze, Silver, or Gold level certification to correspondent investors buying loans from MCT® clients. 

Watch the InvestorMatic Webinar Recording

View the webinar recording from November 7th, 2019 as MCT’s Chief Operating Officer, Phil Rasori, and SVP of Capital Markets, Justin Grant, provide an overview of the InvestorMatic program.

Webinar Topics: 

  • Review of the key components lenders are looking for from investors
  • Outline the goals of the new InvestorMatic program
  • Explain the certification levels and requirements
  • InvestorMatic software and technology overview

InvestorMatic Video Preview

What are Lenders looking for from Investors?

The InvestorMatic Program has identified primary indicators for an investor’s ability to improve loan sale efficiency and profitability for sellers. Through analysis and discussion, the five key components below have been used to create certification levels for correspondent investors. 

Faster Pricing & Commitments – Certification levels require correspondent investors to return bids and commitments within a specific time frame. 

Bid Tape AOT Delivery Channel – Track which correspondent investors offer full-featured bid tape AOT delivery options with features like immediate acceptance, automatic blending, and tri-party automation. 

Data Encryption in Transit & At Rest – Software ensures non-public information is encrypted when the data is in transit and at rest, and never transmitted via email. 

Real-Time Shadow Bids – The InvestorMatic certifications show which correspondent investors shadow price bid tapes for MCT client with whom they are not currently approved. 

Bid Tape Indicative Pricing – This shows which investors are providing accurate indicative bid tape pricing on MCT client open pipelines, solving the discrepancy between rate-sheet based mark-to-market reports and realized bid pricing on closed whole loans. 

InvestorMatic Certification Levels & Requirements

Correspondent investors working with MCT clients are organized by their operational efficiencies, data security practices, profitability features, and other characteristics to help clients determine the effectiveness of each correspondent investor. MCT is currently communicating with our correspondent investors regarding their certification levels and we will be publishing the results in the next six to eight weeks. If you have any questions please contact us today

Loan-Level Characteristics Considered for Accurate MSR Pricing

With the new MSRlive! API, you can develop pricing that includes key loan-level characteristics such as location, FICO, loan-to-value (LTV), and more in real time. By factoring in these elements, there is an opportunity which allows avoiding overpaying for potentially underperforming assets. 

Sample Grid Level comparing static pricing vs. custom API

To illustrate the importance of loan-level characteristics in your pricing, consider the example above comprised of 18 loans with varying attributes. If a purchaser applied a four-to-one multiple to each loan, that would ultimately result in less than overall favorable returns.

With MSRlive! API, loan-level characteristics like location, FICO, LTV and prepay scenarios are factored in to produce granular pricing for each loan. By mathematically factoring in key characteristics, the MSR buyer ensures they’re not overpaying for these assets while improving the potential for favorable long-term-profitability. No more waiting days or weeks to get the data you’re looking for, MSRlive! API gets you more granular data in real time at your fingertips. 


There’s More to the Story

The technology certification levels have been established to help MCT lender clients evaluate correspondent investors, but there is more to the story. While technology can be a good indicator on the seller experience, other factors like customer service, product mix, and additional value-adds should be considered. MCT will continue to recommend investors based on the complete picture of these and other factors.

As always, MCT provides lenders with best execution analysis and recommendations designed to achieve their goals, and in which price competitiveness is the leading factor.

InvestorMatic Software & Technology Overview

For investors committed to improving their seller experience, MCT is happy to offer a suite of solutions to help achieve that goal. 

Whole Loan Trading Platform – Bid Auction Manager

Bid Auction Manager (BAM®) is a whole loan trading platform within MCTlive! that encrypts bid tapes so they can be securely and efficiently priced by investors. Investors then load tapes back into MCTlive! where they reside in a centralized bid tape repository that can be easily reviewed to achieve Best Execution. 

InvestorMatic Software & Features

Access and shadow price bid tapes for MCT clients with whom you have not yet approved. Bid tapes are anonymized and scrubbed of all NPI, but reporting on the market share you would have won and the missed profit opportunity is provided automatically to the seller. Interested sellers self-identify, automating the process of growing your base of sellers and mutual clients with MCT. AutoShadow can be completed daily or live, and works best in conjunction with MCT AutoBid.

MCT’s proprietary historical database of best execution analysis and loan sales. Unique reporting and visualizations designed to optimize correspondent pricing and build market share at the aggregate, lender, and loan level.

        • Summary Reporting, Opportunity Curves & Love/Hate Factor
        • Slice & Dice by Lender, Region, Product, & More
        • Limited to “Lost By” data only. “Won By” data is never shared to protect lenders from price degradation.

Automate the process of pricing bid tapes and accepting commitments for MCT clients. Because MCT AutoBid is built into MCTlive!, pricing is instant providing the best possible seller experience. No more organizing, normalizing, pricing, or returning bid tapes and commitment requests via spreadsheets and email – just fast, accurate bid tape pricing to improve the seller experience and grow market share. MCT AutoBid will eventually be expanded to support non-MCT clients.

Provide accurate indicative pricing to MCT clients by pricing loans still open in lender pipelines. The discrepancy between rate sheet and bid tape pricing causes lenders headaches in valuation and accounting, solve this problem and improve their experience by providing indicative bid pricing on a weekly or monthly basis.

MCT’s proprietary geocoder allows investors to consume geographic data without the borrower address being included in the bid tape. The wide field of potential investors receiving tapes and lack of legal protections from non-purchasing parties present security and prepay risks for sellers. Leverage AutoSecure® to support your CRA and spec strategies without requiring the borrower address to be shared with you during the bidding process..

Launch, automate, and manage your bid tape AOT delivery channel with MCT’s AutoAOT® software. The benefits of bid tape AOT have made it an increasingly dominant channel for sellers, but the nuances of paperwork and third parties can be a challenge for correspondent investors looking to offer it. Automate the features sellers are looking for – like immediate acceptance, automatic blending, and tri-party automation using AutoAOT.

Meet with us to learn more

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