Skip to main content

PriceMyLoan and MCT introduce pipeline hedging tool

Dec 02, 2009

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.
About the author
Published
Dec 02, 2009
STRATMOR, Teraverde Deal A 'Merger Of Equals'

The recent merger of mortgage advisory firms came without the need to lay people off or make any major staffing changes.

May 23, 2024
NEXA Pays Loan Officers 100% Of Commission Splits

LOs won't pay per-file fees or other hidden fees with NEXA100, says NEXA Founder and CEO Mike Kortas.

May 22, 2024
The Right Prescription

‘Doctor Loans’ making healthy strides in Florida

May 21, 2024
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024