Mortgage Capital Trading (MCT)
has announced that it is incorporating the company’s patent-pending geocoding technology into its Bid Auction Manager (BAM) whole loan trading platform in order to shield borrower addresses from being shared with non-buying entities throughout the whole loan bidding process.
“Concealing borrower addresses for whole loan bids is the most recent step that MCT is taking to heighten data security while protecting borrowers and lenders,” said Phil Rasori, Chief Operating Officer and Head Trader at MCT
. “We estimate that upwards of 90 percent of all secondary marketing transactions expose borrower addresses to non-buying bidders. The only investor that should eventually see the property address is the one that wins the loan. MCT's proprietary BAM Geocoder enables investors to price LMI-CRA incentives without the address.”
While clear contract terms typically govern borrower data usage for the whole loan buyer and seller, they generally fail to address the non-buying bidders, according to a review of MCT’s lender clients. This can be a sensitive area for some parties, in particular for EPO (early pay off) and servicing pre-payments, as refinancing terms do not take into account safeguards for borrower loan data during the bidding process.
“Ensuring that our systems and processes are as secure as possible is always of the highest importance,” said Rasori. “We are confident that this new level of protection will become the standard in the near future, and we’re proud to lead the industry in this direction.”