Total Sale & Securitization Optimization

The value of any lender’s production depends, to a large extent, on the way it tends to sell it off. This is counterintuitive to many lenders, who believe that the highest price an investor will pay for a loan is, by definition, best execution. That’s not actually true.

 While many lenders are satisfied to sell off their production on a flow basis or in bulk, selling whole loans is only one option available to them. The production could also be sold off to an investor who will pool the loans for securitization. The lender might also participate in a co-issue.

 All of these options return different results for best execution and determining the real value can be quite complex. This is one specific area in which MCM excels.

 Most best execution platforms will take a pool of loans from one or more lenders, say 100 loans that are closed and ready for sale, and then send out a marketing email to a group of investors to solicit their bids for the production. There may be 10 or 12 investors in the solicitation and they will all return the price they are willing to pay for any of the loans in the pool. These loans are then sold off piecemeal to the highest bidders.

 This seems like “best execution” and so they call their job done. This is where we begin.

 We understand that selling whole loans is only one option to many lenders and we make it our goal to give them all of the available options before driving them to any particular investor.

 To do that we take the bids from the first line investors and then combine them with information about potential securitization options and whether the loans are being sold with servicing released or retained. This allows us to evaluate all possible executions using our own proprietary methodology to find the real best execution.

 Often it makes more sense, from a financial perspective, to place the loan into a pool to be securitized than it does to sell it off as a whole loan to a particular investor. Sellers profit from both the stips on securities and the execution itself.

 It’s important to know that this type of valuation is not something just any company can do. This is definitely not something a company can do well with an Excel spreadsheet. What we have accomplished is nothing less than an engineering feat.

 We haven’t just assembled a collection of APIs linked to different investors so we can ask them what they would like to pay. That’s a lazy approach to the business that can return fair prices but won’t result in the best execution.

 Lenders who don’t work with MCM are always leaving money on the table. How much? Our analysis results in increased profit per loan that ranges from 17 to 50 basis points, making it too significant to ignore.


MCM provides this service through both types of relationships:

Partnership Account

MCM advises clients, who then execute trades, best execution based pooling and delivery. MCM is always available for conference calls to discuss trading strategies and to provide consulting and market analysis.

Guardian Account

MCM does it all, executing MBS trades, providing best execution based pooling and delivery, monitoring pricing and leading a daily client conference call to coordinate secondary marketing activities

Under either type of business relationship, MCM’s systems, reporting and analysis tools are all available online providing instant accessibility to comprehensive analysis and reports, eliminating the need for the client to load, maintain and manage the software.

Ease of access, ease of use, quick report generation and real‑time “what‑if” scenarios all provide the client with the necessary tools to succeed in the world of risk management. Combined with MCM’s experienced advisors, Hedge Commander allows clients to grow and prosper in any market environment.

Since 1994, Mortgage Capital Management has helped mortgage bankers of every size become more profitable through the use of best-in-class pipeline risk management tools and strategies. Our pipeline risk management services, secondary marketing consulting, and hedging/trading services enable clients to prosper in any market environment.

 For nearly 30 years, the U.S. mortgage industry has called upon Mortgage Capital Management for expert advice and proven technologies all designed to deliver best execution in service to a more profitable enterprise. Our customer list includes some of the most successful firms in the business.

 Viewing the online demo costs you nothing and will shed light on a unique approach to secondary marketing success that you won’t find anywhere else.

 We’re also open to discussing your unique requirements to arrive at a workable solution that will help you achieve your unique goals. Once you see what’s possible with modern financial services technology, your successful future will begin to come into focus. Don’t settle for mediocre when excellence is achievable.

Get the MCM Competitive Advantage! Call us to today to learn more or schedule an online demo: 858.483.4404 x220

Call us to today to learn more or schedule an online demo

Project & Services

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco