Back-End Mortgage Product & Pricing Engine and Front-End Base Rate Generation
With MCT mortgage pricing software you can accurately evaluate the current value of your mortgage pipeline and optimize profits at time of loan sale. With the Base Rate Generator, you can also directly create your front-end rate sheet pricing with those back-end capital markets executions. Clients receive mark to market reports of locked pipeline and best execution options to determine max profitability of loan sales on a daily basis with our decision lender solutions.
Loan-Level Pricing for Every Client, Investor & Channel: Mortgage Pricing Software
MCT’s Product & Pricing Engine (PPE) is a software that calculates pricing options and generates different loan pricing scenarios with varied rate options. Learn more about product pricing engines and how the MCT product and pricing group will benefit your business.
This daily compilation of loan level pricing and eligibility is for both Mark to Market and Best Execution purposes for all available delivery methods.
Daily Mark to Market Report
MCT provides our clients with a daily Mark to Market of their locked pipeline and Best Execution Analysis of their loans available for sale.
Automated pricing through our proprietary loan pipeline management software, MCTlive! ensures accurately compiled base rates, LLPA
LLPA - Loan level price adjustors. tables, SRP schedules, adjustment grids, and underwriting eligibility on a daily basis.
Robust Delivery Options
Clients have the ability to submit bid tapes to investors with the click of a button through our efficient and easy to use mortgage pricing engine. Accurate pricing or shadow bids are achieved through automated pricing compilation.
- Provides loan level pricing details across the client’s suite of investors allowing them to accurately evaluate the value of their pipeline and optimize profits at time of loan sale.
- The Product & Pricing Group acts as a conduit to bring investors and clients together in order to broaden our client’s product offering.
Improve Pricing & Preserve Day-One Margin with the Base Rate Generator
The Base Rate Generator is an industry-changing solution that allows mortgage lenders to directly inform their front-end rate sheet pricing with their back-end capital markets executions. By combining live agency API connections, co-issue executions, aggregator pricing, and custom TBA indications, the MCT Base Rate Generator allows mortgage lenders to improve margin management and competitive performance.
The Base Rate Generator was developed with direct input from clients of all sizes and includes industry-first features that satisfy lenders whether they securitize, deliver to the cash window, or prefer working exclusively with aggregators. Custom TBA indications on illiquid coupons can be incorporated directly, along with float carry and specified settlement calculations. Lenders can use the spec margin holdback feature to systematically withhold or pass-through the associated pay ups increasingly prevalent across the investor pricing spectrum. Best execution blending functionality supports selecting the second or third best execution as the pricing basis, or an average of the top several, to smooth out and protect against margin-killing outliers that may not be available for delivery on the back end.
View the webinar to see the features in action or contact us to learn more about this service.
Product & Pricing Group: How It Works
MCT works with our clients and directly with investors to compile base rates, LLPA tables, SRP schedules, adjustment grids and underwriting eligibility on a daily basis with our efficient and accurate mortgage pricing software.
The Product & Pricing Group is overseen by Chris Anderson and managed by Luke Chang and is supported by senior MCT staff with pricing, loan eligibility, and database experience.
- Data points are aggregated to produce accurate loan level pricing & eligibility to our clients for both Mark to Market and Best Execution purposes.
- Accurate pricing & eligibility is provided for all available investor delivery methods; best efforts, mandatory, AOT
Assignment of Trade (AOT) - A transaction used primarily in the mortgage-backed securities market, where the obligation to fulfill an existing forward trade is assigned by one of the counterparties to a third party. Typically the third party is an investor and the party assigning the trade is a loan originator who then sends loans to that investor that will fulfill the obligation represented by the assigned trade.(investopedia, n.d.) /DT and single loan mandatory.
Product & Pricing Group: Benefits
MCT provides our clients with a daily Mark to Market of their locked pipeline and Best Execution of their loans available for sale to evaluate value of pipeline as well as profitability.
Precise
Pricing component compilation is automated in our mortgage pricing software to ensure accuracy.
Ease Of Use
Stacks Net Sell price per loan by investor; best to worst.
Guidance
MCT traders will commit loans to investors on our client’s behalf and make recommendations on strategies to improve profitability.
Flexible
Ability for clients to show all investors or hide specific investors from Best Execution due to investor operational inefficiencies.
Robust Delivery Options
Ability for clients to submit bulk tapes to eligible investors with the click of a button.
Product & Pricing: Latest News & Educational Articles
Mortgage Capital Trading, Inc. (MCT®), the de facto leader in innovative mortgage capital markets technology, today announced the release of the Base Rate Generator, an industry-changing solution that allows mortgage lenders to directly inform their front-end rate sheet pricing with their back-end capital markets executions.
![Preserve Margins and Improve Pricing with the Base Rate Generator [MCT Industry Webinar]](https://mct-trading.com/wp-content/uploads/2024/05/Base-Rate-Generator-Webinar-Recording-300x166.jpg "Preserve Margins and Improve Pricing with the Base Rate Generator [MCT Industry Webinar]")
View the webinar recording featuring MCT’s Phil Rasori, Chris Anderson, Rob Barnhill and Luke Chang on the latest developments in front-end pricing and back-end capital markets execution. The landscape and granularity of investor pricing has changed, and lenders should keep up in order to preserve and optimize their margins.
Lenders using MCT’s loan pipeline management software, MCTlive!, received bid tape pricing at the loan level on their open pipeline in year-end mark-to-market reports, a major improvement over the rate sheet and direct trade pricing typically used for this purpose and the first step in addressing a recent crisis in derivative asset pipeline valuation.
Our seasoned team of capital markets experts will ensure unparalleled support, guidance, and product knowledge to improve your mortgage banking experience.
Getting Started
Request a quick introductory call to learn more about our new Product & Pricing Group.
Schedule a CallHear What Clients Are Saying
