BAMCO brings co-issue transactions directly into MCT’s whole loan trading platform and improves price transparency by connecting unapproved sellers to live executions from potential buyers, MCT says in a release.
“We’re very excited about having BSI on BAMCO as we move toward realizing MCT’s vision of every loan being priced to every investor,” says Justin Grant, senior director, head of investor services at MCT. “Historically, lenders have had far more whole loan outlets than co-issue outlets – we’re seeking to change that with BAMCO. BSI aids in that goal while bringing their respected process and excellent team.”
Co-issue loan sales, also known as flow-based mortgage servicing rights (MSR) sales, are a three-way transaction involving the sale of loans to one of the agencies with a simultaneous sale of the MSR to a separate third party, such as BSI Financial.
BAMCO supports live, flow-based, loan-level MSR pricing, expanding execution options for sellers while creating new client acquisition opportunities for buyers.
While co-issue executions via agency integrations have always been and will continue to be included in lenders’ loan sale best execution analysis, BAMCO provides a new section featuring direct co-issue pricing for both approved and unapproved buyers, MCT says.
Co-issue buyers have the choice to deliver standard grid-based co-issue pricing or loan-level bid tape co-issue pricing.