PriceMyLoan (PML) and Mortgage Capital Trading (MCT) have introduced the availability of a unique data interface between the two companies. 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.
"Investors are providing a huge profit incentive for lenders to move to mandatory executions," said 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," said Rasori.
When lenders lock a rate in PriceMyLoan's automated underwriting and loan pricing engine, the ALPHA Interface automatically updates MCT'S hedging model, providing a tangible reduction in risk by 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 that results in faster reporting with fewer errors.
"Lenders are exposed to interest rate movements the longer they have locks without hedge positions," said Rasori. "Combining PriceMyLoan's accurate up-front pricing with the ALPHA Interface allows us to hedge more frequently and more accurately. Instead of relying on the lender to send us intermittent pipeline reports, we can now peer directly into their pipeline and optimize our hedge strategy without any added effort from us or the client."
For more information, visit www.pricemyloan.com or www.mct-trading.com.