MCT Exchange 2023 Recap

It was wonderful seeing everyone in what is becoming a consistently rainy San Diego for this year’s MCT Exchange! We hope you enjoyed the general sessions, a keynote from Fannie Mae’s Doug Duncan, as well as the roundtables and breakout sessions! Read on to access the presentation slide decks, view panel summaries, and view the photos. 

Table of Contents

• Thursday – Introduction, Speakers, and Breakout Sessions
• Thursday Afternoon – Altitude Sky Lounge
• Friday – Key Note Address, Panels, and Round Tables Discussions
• Friday Afternoon – After Party at the Hard Rock Hotel Float Bar
• MCT Exchange App – Overview & Photos
• Photo Gallery

Opening Remarks – Spring Forward into MCT Exchange

Presenter: Curtis Richins
Sponsor: PHH

MCT’s President, Curtis Richins, opened this year’s conference with a heartfelt tribute to industry veteran, Don Currie. His address then highlighted how we’re in a pivotal moment in the industry, noting that it feels we’re in a period of reset and a time when MCT’s core values (Drive to Transform, Community, Trust, and Humility) are central to client success. While MCT will always remain laser-focused on innovation and client profitability, MCT will remain vigilant so that we’re always adapting to the needs of our clients in the current market.

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Taking on Current Market Challenges

Presenters: Chris Anderson, David Gilbert, Barb Klegin, Maureen Kloor, John Pecoraro
Sponsor: Penny Mac

This client panel focused on how elevated mortgage rates, coupled with low home supply and affordability, have really put a damper on our industry over the past year. The Federal Reserve has made clear its commitment to driving a stake through inflation, even if it means rates will continue to rise and eventually a possible recession. But the companies that best adapt to these challenging market conditions are the ones that are not only going to survive but come out the other side in the strongest positions. This panel focused on how clients are taking on current market challenges.

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Changing Landscapes in the MSR Market: Refining Your Strategy

Presenters: Bill Shirreffs, Azad Rafat, David Burruss, Natalie Martinez
Sponsor: Village Capital & Investment

This panel focused on how to refine your MSR strategy in a constantly changing MSR market. With an initial review of valuation types, the panel discussed current trends for fair value and market value. The group then went into current market driver scenarios and challenges, then strategies to address those challenges. One current theme included how fair values have peaked for 2020, 2021, and possibly 2022 production. While we can’t control mortgage rates or economic conditions, MSR managers can still continue to review their retain/release strategy and ensure granular MSR pricing.

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Farewell Fargo: The Changing Landscape of Mortgage Asset Investors

Presenters: Justin Grant, Ben Itkin, Chris King, Nick Pabarcus, Peter Simon
Sponsor: Lender Price

This session reviewed how the Wells Fargo exit has impacted the landscape for mortgage investors. With an initial review of the evolution of mandatory seller executions, the group then discussed how the landscape is expected to change in the future. As new lenders reach economies of scale, correspondent is becoming a more viable channel. Asset managers, insurance companies, and private label securitizers have the potential to be significant new market entrants. There is also a lower barrier to entry for new buyers of MSR. 

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Keynote: Paving the Way for a New Market

Presenter: Doug Duncan, SVP & Chief Economist, Fannie Mae
Sponsor: Marex

Doug Duncan captivated audiences with his expert market insight and held attention with his timely econ humor. His introduction led with a short summary of the Silicon Valley Bank collapse, where he noted that information at your fingertips led to a run on the bank in just a few short hours. He then followed with a poll asking attendees: “When do you believe the next recession will start”? 49.5% of respondents believed it to be in the second half of 2023, while 29.3% chose the first half of 2023. Mr. Duncan’s analysis agreed with the 49.5% of respondents. View the slide deck below to learn more about Mr. Duncan’s market analysis and future outlook.

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Our Vision for the Future of the Secondary Market

Presenters: Phil Rasori, Paul Yarbrough, Justin Grant
Sponsor: Wintrust

This panel reviewed MCT’s vision of the future where MCT’s lender clients have open access to every opportunity, counterparty, and execution type. The panel outlined their plan to leverage digitization, automation, and improved liquidity to eliminate current barriers. While many of these challenges, like digital loan and TBA trading, have already been solved, there are a few more obstacles before this vision becomes a reality. The next challenge MCT intends to tackle is co-issue execution through the new BAMCO marketplace. Learn more about MCT’s vision for the future by viewing the presentation slide deck below.

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