PriceMyLoan and MCT Introduce Pipeline Hedging Tool
ALPHA Interface optimizes data analysis for faster,
more accurate pipeline hedging
COSTA MESA and SAN DIEGO, CA – December 4, 2009 – PriceMyLoan (PML) and Mortgage Capital Trading (MCT) introduced today the availability of a unique data interface between the two companies. The Automated Loan Pipeline Hedging and Analysis (ALPHA) Interface feeds loan pricing data from PML’s automated underwriting and pricing engine directly into MCT’s proprietary hedging model. The interface makes it easier for mortgage lenders to benefit from the higher profits gained from mandatory executions.
“Investors are providing a huge profit incentive for lenders to move to mandatory executions,” said Phil Rasori chief operations officer for MCT, a secondary marketing advisory services firm based in San Diego. “However, the perceived risk is that lenders could lose money if they’re not properly hedged. Our real-time hedge process combined with the ALPHA Interface minimizes this risk and provides continuous coverage for our clients throughout the day,” said Rasori.
When lenders lock a rate in PriceMyLoan’s automated underwriting and loan pricing engine, the ALPHA Interface automatically updates MCT’S hedging model, providing a tangible reduction in risk by shortening the time period between rate locks and hedge positions.
The ALPHA Interface proactively delivers pipeline data directly into MCT’s hedging model, eliminating several steps in the data acquisition process that results in faster reporting with fewer errors. “Lenders are exposed to interest rate movements the longer they have locks without hedge positions,” said Rasori. “Combining PriceMyLoan’s accurate up-front pricing with the ALPHA Interface allows us to hedge more frequently and more accurately. Instead of relying on the lender to send us intermittent pipeline reports, we can now peer directly into their pipeline and optimize our hedge strategy without any added effort from us or the client.”
PriceMyLoan is a proprietary product of Insight Lending Solutions (ILS). Founded in 2002, ILS provides web-based application service for the mortgage lending industry and software as a service (SaaS) to its clients to enhance productivity, reduce IT dependency, and accelerate time-to-value for mortgage companies. Combining advanced technology development using XML and MISMO standards with high-quality service, ILS provides its clients with solutions that result in reduced loan cycle times, improved pull through rates, and a lowered total cost of software ownership. For more information, please visit www.pricemyloan.com.
About Mortgage Capital Trading
MCT is an advisory services company providing independent analysis, training, daily guidance, hedging strategy, and loan sales execution support to clients engaged in the domestic secondary mortgage market. Founded in San Diego, California in May 2001, the company has expanded to include field sales and support offices in Philadelphia, Dallas, and San Francisco. For more information, please visit mct-trading.com.
Contact: Linn Cook