The Automated Loan Pipeline Hedging and Analysis (ALPHA) Interface feeds loan pricing data from PML's automated underwriting and pricing engine directly into MCT's proprietary hedging model. The interface makes it easier for mortgage lenders to benefit from the higher profits gained from mandatory executions, the companies say.
‘Investors are providing a huge profit incentive for lenders to move to mandatory executions,’ says Phil Rasori, chief operations officer for MCT, a secondary marketing advisory services firm based in San Diego. ‘However, the perceived risk is that lenders could lose money if they're not properly hedged. Our real-time hedge process combined with the ALPHA Interface minimizes this risk and provides continuous coverage for our clients throughout the day."
When lenders lock a rate in PML's pricing engine, the ALPHA Interface automatically updates MCT's hedging model, shortening the time period between rate locks and hedge positions. The ALPHA Interface proactively delivers pipeline data directly into MCT's hedging model, eliminating several steps in the data acquisition process.