Loan Delivery Methods: Turning Process Into Profit

Loan delivery is the process of transferring a closed mortgage loan to an investor or government-sponsored enterprise (GSE) such as Fannie Mae (FNMA) or Freddie Mac (FHLMC). 

While often seen as an administrative task, loan delivery is a critical revenue event that determines when, how, and how much a lender gets paid. 

Each delivery method has implications for risk, pricing, and investor relationships. Regardless of the delivery method being used, lenders who understand and strategically manage their delivery approach may unlock meaningful improvements in profitability.

The loan delivery process evolves in stages, starting with best efforts and advancing to mandatory execution. As lenders gain experience, increase their production volume, and build their net worth, they move through the phases of refining their strategies, gaining access to stronger investor pricing, and eventually aiming for direct agency delivery for the best possible terms.

Crafting a profitable loan execution strategy begins with understanding the foundational elements that shape it. A lender’s net worth determines access to investors and pricing tiers. Origination volume affects delivery efficiency and hedging viability. Broker-dealer relationships influence assignment of trade (AOT) opportunities and execution flexibility. Operational readiness, including a centralized lock desk and strong pipeline management, also play a major role in determining what strategies a lender can support.

With MCT’s expert guidance and tools such as MCT Marketplace, lenders can align these foundational factors to maximize returns while scaling delivery sophistication over time.

Loan delivery is a strategic choice that directly impacts margin. Understanding the main execution options available through GSEs and investors is essential to making smarter delivery decisions.

Investors offer five main types of delivery methods, each with unique pricing structures and operational requirements. These types include rate-sheet best efforts, rate-sheet mandatory, direct trade, assignment of trade, and bulk bid execution. 

FHLMC and FNMA loan delivery (GSE) both have two main methods via cash commitment window or mortgage-backed security (MBS) delivery. Cash commitment window is available on a best efforts or mandatory basis while MBS is where loans are pooled and tied to “To Be Announced” (TBA) trades.

Choosing the right loan delivery method is about what makes the most sense for the business today. The ideal execution strategy depends on lender volume, risk tolerance, investor appetite, operational readiness, and market conditions. Consider how to match delivery methods to the current environment, and when it makes sense to level-up.

MCT helps lenders evaluate delivery methods on price, operational fit, market timing, and long-term profitability. Through tools like MCTlive!, performance dashboards, and weekly investor analytics, MCT clients make more confident execution decisions every day.

Whether a lender is deciding when to try their first AOT, explore bulk bidding, or move into MBS delivery, MCT’s team is there to guide them, with data, insight, and experience.

Real-world execution requires more than theory. It demands flexibility, partnership, and the right tools. MCT offers full-service, hybrid, and autonomous support models to match any lender’s structure and goals. From fully-outsourced execution to in-house management using MCTlive!, lenders can adapt their delivery approach as they scale. 

As operational needs change, MCT helps align delivery methods, investor strategies, and analytics tools accordingly. With advanced features such as bid tape analytics, AOT savings tracking, and performance dashboards, paired with expert support, MCT ensures every client has what they need to turn execution strategy into a source of sustained margin growth.