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MAXEX Launches New Non-QM Liquidity Programs

David Krechevsky
Sep 28, 2022

Programs are intended to meet the needs of originators and loan buyers in the Non-QM market.

MAXEX, the first digital mortgage exchange, said Wednesday it has launched new programs to meet the needs of originators and loan buyers in the growing non-qualified mortgage (Non-QM) lending market.

The Atlanta-based fintech said Non-QM lending programs for creditworthy homeowners who fall outside of qualified-mortgage guidelines are critical to the long-term growth of the U.S. housing market. 

However, it said, market volatility has left mortgage originators scrambling for liquidity in this growing market segment, despite loan buyers’ increasing demand for Non-QM loans. 

MAXEX said its multi-buyer to multi-seller platform provides “reliable liquidity by enabling originators to access multiple leading buyers through a single counterparty.”

MAXEX said it will deliver Non-QM liquidity in three ways:

  • Daily flow trading: Setting guidelines and competitive daily pricing on individual whole loans;
  • Forward trading: Agreements to sell loan pools at a future date with pre-negotiated terms and pricing; and
  • Bulk trading: The ability to sell closed loan pools to one or more buyers in a single transaction.

“Access to reliable liquidity is critical to the growth of Non-QM lending, which serves the growing number of gig economy workers, business owners, and other underserved creditworthy borrowers with non-traditional income documentation,” said Brennan Walters, chief revenue officer at MAXEX. “The growth of this fragmented market requires standardization to meet the long-term needs of the consumer and the industry. MAXEX is committed to providing that, just as we have for jumbo loans.”

With the launch of its Non-QM program, MAXEX said, it continues to expand its role as a steady and growing source of liquidity for the secondary market. 

MAXEX reinforced its position as a reliable purchaser of prime jumbo loans as the mortgage industry experienced initial disruption and then historic volumes throughout the COVID-19 pandemic, bringing much-needed standardization and efficiency to originators and institutional investors, the company said.

It extended its platform in July 2021 to increase liquidity for non-owner occupied and second home loans, the company said. In addition, in May 2022, it launched a new debt service coverage ratio (DSCR) program and expanded its capabilities for bulk and forward trading.

MAXEX connects a growing network of over 300 bank and non-bank lenders with investors, including Wall Street banks, real estate investment trusts (REITs), and insurance companies to enable faster, more efficient liquidity.

Sep 28, 2022
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