MCT Whitepapers

Latest Whitepapers Covering Capital Markets Topics

MCT® creates new capital markets whitepapers for educating our clients, partners, and friends. They offer insights into our view of capital markets and mortgage hedging services. Dive into this knowledgebase to improve your understanding of complex topics explained by our industry experts.

Margin Management Best Practices

Within this whitepaper, we’ll review the intricate world of margin management, a pivotal driver of success in the ever-transforming mortgage industry.


Release Date: November 28, 2023
Writer: Cody Echols, CMTA, South and Southeast Sales Regions

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Optimizing Your Best Execution Loan Sale Analysis

In any market scenario, it’s crucial for lenders to analyze best execution options to maximize profitability selling loans in secondary market.


Release Date: August 24, 2023
Writer: MCT

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Getting Started with Agency Approvals

Receiving your GSE or Ginnie Mae approval not only adds value to the net worth of mortgage lenders, but several other doors open.


Release Date: August 22, 2023
Writer: Michael Drayne, Principal, Drayne Advisory LLC, and Jennifer R. Whip, CMB® Principal, Cambridge One, LLC

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Mortgage Pipeline Hedging 101

Learn from our secondary marketing experts how you can use hedging as a tactic to mitigate risk and optimize profitability when selling mortgage loans.


Release Date: January 18, 2023
Writer: MCT

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Getting Started with Co-Issue Transactions

In this whitepaper, we’ll review the basics of co-issue transactions, how to get started and how to easily incorporate this strategy in your plan to achieve your business objectives.


Release Date: November 29, 2022
Writer: MCT & Mr. Cooper

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Leveraging TBA Trading in your Mortgage Loan Sale Process

Especially in volatile markets, it’s good to have a finger on your mortgage loan pipeline and trade frequently. This capital markets whitepaper outlines ways to gain more efficiencies over your TBA trading.


Release Date: June 28, 2022
Writer: MCT

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Six Unique Ways to Increase Your Profitability Despite Market Headwinds

Learn how MCT leverages unique software and services like BAM Marketplace, bid tape AOT, and Trade Auction Manager to help clients squeeze every basis point from their best execution loan sale strategy.


Release Date: June 8, 2022
Writer: MCT

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The Links Between MBS Markets and Loan Prices

In this whitepaper, we will explore the relationship between consumer loan pricing and capital market conditions to address common misconceptions and illustrate the processes involved.


Release Date: April 6, 2022
Writer: MCT

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Understanding and Preparing for Changes in the Mortgage Market

In this white paper, Mortgage Capital Trading (MCT) and Mike Fratantoni explain how lenders can set a foundation of resilience to changing markets.


Release Date: February 8, 2022
Writer: Mike Fratantoni, MBA

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How Credit Unions Can Benefit Members Through Investor Set Optimization

As a credit union, you have deep community roots, loyal membership, and are always looking to grow market share. One way to help your members get the best rate or price is by optimizing your investor set.


Release Date: July 13, 2021
Writer: Anthony Ianni, Northwest Sales Director at MCT

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Strategies for Credit Unions to Add Value to Members

In this whitepaper, we will examine a Credit Union’s process flow and identify strategies that amount to over 50 basis points of potential improvement to margins.


Release Date: March 9, 2021
Writer: Anthony Ianni, Northwest Sales Director at MCT

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How Your Loan Sale Process is Holding You Back

In this whitepaper, we will explain the main features and functionalities of BAM Marketplace, giving an in-detail comparison between the standard loan sale process and the upgraded workflow of an open loan exchange.


Release Date: June 30, 2021
Writer: Justin Grant, MCT

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Tax & Cash Implications of Creating Excess Servicing

In this whitepaper, MCT teams up with CWDL to explain how excess is servicing is created as well as cash and tax consequences of retaining the excess MSR.


Release Date: January 25, 2021
Writer: CWDL and Mortgage Capital Trading

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Non-Price Considerations in Your Best Execution Analysis

In this whitepaper, MCT teams up with Freddie Mac to identify unexpected costs associated with your loan sales to improve profitability.


Release Date: December 4, 2020
Writer: Freddie Mac and Mortgage Capital Trading

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MSR Assumptions Q2 2020

This is a timely announcement from MCT’s MSR Services division to summarize how the second quarter of 2020 has changed MSR valuation assumptions. This is a follow-up to our MSR Assumptions Q1 2020 released in April.


Release Date: July 15, 2020
Writer: Phil Laren, Director of MSR Services at MCT

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The Links Between MBS Markets and Loan Prices

Read this whitepaper to explore the relationship between consumer loan pricing and capital market conditions, address common misconceptions, and illustrate the processes involved in generating consumer loan offerings and intermediate loan prices.


Release Date: July 6, 2020
Writer: Bill Berliner, Director of Analytics at MCT

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Lock Desk Centralization 101

In this overview whitepaper, we’ll discuss what operational changes to staff, procedures, and technology will need to be made in order to establish a centralized lock desk for your business.


Release Date: April 13, 2020
Writer: Chris Anderson, Chief Administrative Officer and LockCentral Founder at MCT

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Ginnie Mae Field Guide Part 1 - Obtaining Approval

In this guide, MCT experts provide guidance to lenders on the nuances of achieving approval with GNMA. Learn the challenges and benefits of Ginnie programs, prerequisites for obtaining Ginnie approval and steps of the approval application process


Release Date: July 2, 2020
Writer: Brett Sinnott, Product & Pricing Manager at MCT

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Ginnie Mae Field Guide Part 2 - Delivery Resources Explained

In this guide, MCT experts provide tips on how to best maximize GNMA’s online resources for delivery. Learn how to avoid common mistakes in Ginnie delivery and how to maximize the use of the following online resources for delivery such as GinnieNET, Ginnie Portal, and Ginnie Manual.


Release Date: July 2, 2020
Writer: Brett Sinnott, Product & Pricing Manager at MCT

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MCT's Response to the FHFA's Proposed Changes, January 2020 Whitepaper

Read MCT’s Response to the FHFA’s Proposed Changes, January 2020 to learn how elements of the proposal would be detrimental to the mortgage lending community and MBS market participants.


Release Date: January 27, 2020
Writer: Bill Berliner, Director of Analytics at MCT

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15 Strategies for Lenders to Improve Profitability Whitepaper

Our latest white paper outlines 15 actionable strategies mortgage lenders use to improve profitability. These include secondary marketing strategies, business operations and technology.


Release Date: December 19, 2019
Writer: Ian Miller, Chief Market Officer at MCT

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Market Summary & Outlook 2020 Whitepaper

Bill Berliner reviews a few recent developments and explore trends in the mortgage and capital markets that have the greatest potential to impact mortgage lending in 2020.


Release Date: January 10, 2020
Writer: Bill Berliner, Director of Analytics at MCT

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Carry Opportunity: Strategy for Banks and Depositories Whitepaper

Bill Berliner discusses current conditions in the MBS market that have created an opportunity for depositories to take advantage of their low funding costs to pick up investment income. Bank and depository clients should consider using the approach outlined in this summary to take advantage of these current unusual conditions in mid-2019.


Release Date: June 4, 2019
Writer: Bill Berliner, Director of Analytics at MCT

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ASE Model: An Alternate View of Value and Risk - Part 2 – Servicing Insights Vol. 9

As a follow up to ASE Part 1, Servicing Insights Vol. 9 explains why MCT utilizes the more dynamic “Aggregated Structural Equations (ASE)” methodology rather than a “rate path” (OAS) methodology to value each MSR asset.


Release Date: April 9, 2019
Writer: Phil Laren, Director of MSR Services at MCT

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Aggregated Structural Equations (ASE) Model – Servicing Insights Vol. 8

Gain an insiders look of how MCT’s Aggregated Structural Equations (ASE) model perceives the relationships between different market interest rates, other impactful variables, and why we believe MCT’s approach is more robust than other models.


Release Date: March 19, 2019
Writer: Phil Laren, Director of MSR Services at MCT

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Economic and MBS Outlook 2019 Whitepaper

Bill Berliner utilizes illustrative charts to discuss the impact of moderating economic growth on interest rates, the mobility of lending volumes, and trends that may influence the mortgage and housing markets. Explore the answers to important secondary market questions for 2019.


Release Date: February 4, 2019
Writer: Bill Berliner, Director of Analytics at MCT

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What Caused the Lender Profit Margin Compression?

Bill Berliner uses MCT client and market data to narrate the steps leading to shrinking margins in 2018 and what may be in store for the future of 2019. This explorative analysis contextualize the top level trends that lenders have been experiencing all year.


Release Date: August 14, 2018
Writer: Bill Berliner, Director of Analytics at MCT

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How to Manage Long-Term Interest Rate Locks

Gain several strategies MCT uses to hedge mortgage pipelines of long-term locks. These recommendations are designed to optimally offset interest rate exposure while minimizing ‘basis risk’ and hedging costs based on market conditions or client’s preferences.


Release Date: June 28, 2018
Writer: Bill Berliner, Director of Analytics at MCT

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Intro to Hedging a MSR Portfolio – Servicing Insights Vol. 7

Decide if you are ready for hedging your MSR portfolio with this discovery tool. This whitepaper will also discuss how you can view servicing as an asset, common myths about hedging MSRs, and the best time to start. 


Release Date: April 9, 2018
Writer: Phil Laren, Director of MSR Services at MCT

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Tax & Escrows: Calculation & Impact – Servicing Insights Vol. 6

Learn what escrow accounts are, why they’re important to servicing, how to calculate accurately, determine the appropriate earnings credit, and preventing underestimating or overestimating your escrow balances.


Release Date: February 2, 2018
Writer: Phil Laren, Director of MSR Services at MCT

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Yield and Arbitrage Theory – Servicing Insights Vol. 5

Learn the basics of arbitrage theory and how it serves as an important justification for OAS. A continuation of our discussion of static vs dynamic returns and deciding the appropriate yields to use in valuing cash flows.


Release Date: June 14, 2017
Writer: Phil Laren, Director of MSR Services at MCT

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Appropriate Discounting Methodology – Servicing Insights Vol. 4

For this issue, we begin a three-part discussion of static vs dynamic returns to convert a stream of cash flows into a price. Discusses issues such as delinquencies, prepayments, risks, and the impact on the price of servicing.


Release Date: April 18, 2017
Writer: Phil Laren, Director of MSR Services at MCT

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Late Fee Revenue in Servicing Valuation – Servicing Insights Vol. 2

Learn how late fee income projections can drive profitability in your servicing and how these complex aspects can place even a professional mortgage banker in the divergent fork of prospect and prudence.


Release Date: November 17, 2016
Writer: Phil Laren, Director of MSR Services at MCT

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Prepayments in Servicing Valuation – Servicing Insights Vol. 3

Take a logical and consistent approach to analyzing the factors that affect prepayments. Learn to follow trends to forecast prepayments from borrowers as well as the immeasurable variables when forecasting prepayments.


Release Date: November 21, 2016
Writer: Phil Laren, Director of MSR Services at MCT

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Foreclosure Costs in Servicing Valuation – Servicing Insights Vol. 1

Navigating foreclosure costs in servicing valuation can be complicated when you have several moving parts and diverse models to optimize for your business. This whitepaper will teach readers to confidently assess delinquency and foreclosure costs.


Release Date: November 15, 2016
Writer: Phil Laren, Director of MSR Services at MCT

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Treasury and Mortgage Rates Perspective, August 2019 Whitepaper

Treasury yield plummeted at the beginning of August 2019 after a confusing post-meeting press conference by Fed Chairman Powell was followed by an escalation in the trade dispute between the U.S. and China. This white paper will provide some context to the recent drop in Treasury and mortgage rates.


Release Date: August 12, 2019
Writer: Bill Berliner, Director Analytics at MCT

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