Blue Water Financial Technologies says it has developed a first of its kind electronic co-issue pricing and trading platform that allows mortgage lenders and investors to view portfolios and transactional data in real time.
The new platform, dubbed MSR-X, facilitates a “true one-stop shop for liquidity,” says Al Qureshi, senior managing partner at Blue Water, in a release.
“Our founding principles seek to integrate technology and price transparency to drive better outcomes for our clients and MSR-X is a testament to that,” Qureshi says. “This platform will drastically change how MSRs are transacted in the secondary market. Originator demand has been strong and we’re confident this innovation will solidify its foothold in the marketplace.”
The company says the platform brings greater efficiencies to the co-issue process and lowers costs for both investors and originators by reducing any manual input of pricing and increasing the immediacy of information.
Buyers and sellers can access MSR-X via the Web and view information in real-time. MSR-X uses a single platform across investor types to mitigate timing risk, providing a real-time way to adjust pricing for changes in rates.
Further, cost-minded originators can use the platform to reduce margin exposure, lower costs and streamline their secondary market operations.
Blue Water says the introduction of this platform switches the paradigm in terms of the way business was previously conducted. Originators don’t pay to participate, rather, the investors do. In return, the investors obtain transactional data, they have better yield certainty through the purchase process, and much of the administrative paperwork has been simplified.
Investors can dynamically manage their appetite for MSR and even upload a daily grid based off of the types of MSR they would like to purchase.
Originators are able to access buyer-side liquidity with no cost.
“I see offering liquidity and price transparency in a free venue for originators as something your typical originator just can’t afford to overlook – especially in this rate cycle,” says Jason Sweeney, director of business development at Blue Water.