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.
Thursday Morning: General Sessions
Thursday kicked off with an introduction from MCT’s President, Curtis Richins, followed by discussions on current market challenges, the MSR landscape, and the impact of Wells Fargo’s exit in the correspondent space. Read to learn more about these sessions and view their slide decks.
Opening Remarks – Spring Forward into MCT Exchange
Presenter: Curtis Richins
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.
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.
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.
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.
Thursday Afternoon: Reception at Altitude Sky Lounge
After an excellent day packed with networking and knowledge, attendees were able to unwind and further their conference connections at the Altitude Sky Lounge. With amazing views, a fun photo booth, and additional opportunities to network, everyone had an amazing time! Take a look at a few of the photos below, and find a full photo gallery at the end of this article.
Friday Morning: Keynote Address & General Session
Friday’s session kicked off with an impactful keynote address from Fannie Mae’s Chief Economist, Doug Duncan. Mr. Duncan reviewed historical and current market insights with lots of laughs in between! They keynote address was followed by a panel outlining MCT’s vision for the future. View the summary and slide decks from these sessions below.
Keynote: Paving the Way for a New Market
Presenter: Doug Duncan, SVP & Chief Economist, Fannie Mae
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.
Our Vision for the Future of the Secondary Market
Presenters: Phil Rasori, Paul Yarbrough, Justin Grant
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.
Friday Afternoon: Reception at Float Bar
After Friday’s sessions and client roundtables, it was time to unwind with the conference crew! Everyone was finally able to enjoy the Float Bar at the Hard Rock Hotel after being rained out the past couple years. People were in good spirits as they concluded Friday with great food, cocktails, and lots of smiles to go around!
MCT Exchange App: Conference Info & Tons of Networking
While many of the attendees appreciated the sharing of ideas during conference panels and breakouts, there was still plenty of time for some fun! This year’s MCT Exchange mobile app continued to be a success with more then 33,000 interactions! Attendees also leveraged the app to connect with conference sponsors, view agenda information, take polls in real time, and much more. View some of the highlights below.
Total App Interactions
MCT Exchange Photos: Capturing Focus & Fun
This year’s MCT Exchange centered around sharing ideas that helped this community weather the storm. Through expert panels, reviewing current market strategies, and everyone’s investment in personal growth, we were able to make this year’s conference a success. Thank you to all who participated and shared laughs with us along the way! We’ve captured some of our favorite moments below.
From all of us at MCT, THANK YOU for being such fantastic people!
We can’t wait to continue our work together in 2023.