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Mortgage Capital Trading, Inc. unveiled its upgraded MCTlive! Pool Optimizer functionality during the company's client conference. The pool optimizer allows secondary market managers to use actual cash window execution for optimization on each individual loan, rather than using a dealer survey for spec pay-ups, according to a press release.
"Depending on loan sale size, the tool looks at millions of iterations of execution options while doing the optimization process on a specified set of loans, creating a factorial to compute the optimal pooling solution," said MCT chief operating officer, Phil Rasori. "When you have a large number of high balance loans and you’re trying to fit them into the 10% de minimus rule, this will make the ideal allocations, whether a specific product or in a pool with high balance."
According to MCT, the pool optimizer involves both cash window commitment process and MBA optimization. This allows for full pricing granularity specific to every available execution, according to the release.
"The system reviews the open pipeline and accounts for all co-issue commitments across the three agencies, 50 aggregators and 10 co-issue buyers. With ‘cross commitment optimization’ you can check, for instance, Fannie direct against co-issue Servicing Marketplace, placing each loan in the best place," said Andrew Rhodes, director of trading at MCT.