LendingQB’s loan origination platform now supports the new Bid Auction Manager (BAM) technology within Mortgage Capital Trading’s (MCT) MCTlive! secondary marketing software platform.
This new integration enables mutual clients to utilize a pure digital “closed loop” secondary marketing process. The companies claim this process drastically reduces time and cost in secondary marketing processes while improving loan sale profitability.
BAM, which was developed by MCT chief operating officer and industry veteran Phil Rasori, migrates the bidding and selling of loans to investors out of unsecure emails and into a convenient platform, eliminating the time and effort needed to manually collect, analyze, and commit loan sale executions.
“BAM provides a better way for lenders to manage their bid tapes and achieve best execution. The secure bidding portal lets investors communicate instantly with lenders, completely eliminating exporting and emailing of bid tape spreadsheets,” says Tom Farmer, managing director at MCT, in a release. “Using BAM, secondary can easily solicit bids from every single investor they work with, increasing the opportunity to sell loans at a better price.”
This new integration builds on the existing relationship between the two software firms and will aid lenders in their secondary marketing efforts. Loans are initially priced using LendingQB’s Total Decision Engine (TDE), an automated underwriting and loan pricing engine built into the overall LOS platform.
TDE ensures that loans are locked at an accurate price and efficiently tracks the progress of loans as they proceed toward funding in LendingQB. LendingQB sends pipeline data into MCTlive! continuously throughout the day, allowing secondary managers to see exactly how their pipeline changes which results in a more transparent and accurate hedge.
“I know exactly where my hedge position is because LendingQB and MCTlive! are integrated and up-to-date,” says Timothy Ieyoub, senior vice president of capital markets at Eustis Mortgage. “It gives me a real-time view of our pipeline with a real-time view of the markets. I can adjust my position as many times as I need to, especially considering the recent market volatility.”
Once bids are analyzed and investors are chosen, commitment data recorded in BAM is automatically sent back into the LOS.
“Being able to bring commitment data back from MCTlive! into LendingQB is a huge time saver for us,” adds Ieyoub. “We save two to four hours every time we do loan sales. The convenience of communication and analysis has encouraged us to send bid tapes to our full set of investors more often rather than just the top tier, resulting in a surprising pickup in some cases. We used to bid out on a fifteen-day delivery, but now we’ve reduced that to seven-day.”
