Resitrader reports that its whole loan trading platform recently passed the $500 million mark in loans traded.
What’s more, the company now has more than three-dozen participants trading regularly on the system.
“We think our timing was right, and the market is now ready for a platform of this type,” says John Ardy, CEO of Resitrader, in a release. “We believe we will become the industry utility for whole loan mortgage trading.”
Resitrader’s secure whole loan platform enables loan originators, banks, servicers, brokers and financial advisors to more easily and quickly buy and sell whole loans. Multiple buyers and sellers can offer, bid and transact simultaneously.
The platform automates many activities currently supported through spreadsheets and makes it simple for buyers and sellers to communicate in real time; notify each other of loan pools they wish to trade; exchange loan data, documents and pricing information; and settle transactions easily. As a result, trading speed has been reduced from several hours to a few minutes.
“Our technology focuses on the process of trading and incorporates pricing,” Ardy says. “Other systems tend to focus just on calculating price. By looking at it as a process – distributing information on loans for sale, reviewing bids, negotiating the final price, confirming the transaction and then exchanging the loan documents – we’ve been able to streamline the communication between loan seller and buyer. What used to take three hours now takes 10 minutes. You get more accurate pricing with less hassle. Our focus on process seems to have caught everyone’s attention.”
Ardy adds that loan buyers are particularly interested in “color,” which is the price at which similar loans are being purchased. Previously, this information was only available by “word of mouth,” Ardy says, but Resitrader provides buyers with “color” reports on each loan. Resitrader claims to provide the most accurate loan pricing available because each loan is priced individually based on its own detailed and exact information.
Resitrader’s success has even spawned the creation of several new competing entities and rejuvenated several older platforms that had been largely dormant the past few years. Ardy says he welcomes the competition.
“We’re happy to see other companies recognize the advantages of whole loan trading platforms,” Ardy says. “This can only be a good thing for the industry since it will help lead to greater liquidity in the secondary mortgage market.”