Whole Loan Valuations

Whole loan valuation sounds straightforward, but the actual value of these assets can vary widely depending upon the disposition the lender or servicer chooses. While some MCM clients request simple valuations based on an expected whole loan sale to one of a number of potential investors, most want to achieve the best execution on every loan they originate.

The nature of the loans also factors into their value and our experience with both agency and non-QM loan products, for both newly originated and seasoned loans, qualifies us to support our clients in this area.

We approach this offering from a couple of different directions, depending upon the needs of our clients. Some request best execution for bulk sales of agency loan products, which is straightforward. Others make use of our Total Sale Optimization System to provide a range of options that together will maximize the value in the loan pool.

Either way, we know how to value it.

The process employed by MCM is unlike any other in the industry. We never look at a loan in a vacuum, but rather consider every aspect of the deal in a relentless search for the best possible execution. Even for an agency product, which many companies might consider straightforward, our analytics can compare the value if servicing is released or retained. We also look at a dozen or more correspondent pricing tools that let us know if it makes more sense to pool the loan with another set of loans, sell it individually, hold it for securitization or a co-issue, or simply sell it outright.

We find the best investor on a loan-by-loan basis. No one else in the industry goes to this level to serve loan originators.

But that’s just the start of it.

At the same time we look at each loan to maximize its value, we also consider the loan in relation to the other loans available for sale to see if there is more value in some other structure. There may be more value in the deal by offering it to a specific investor seeking to invest in a pool of loans with specific characteristics.

While some other consultancy might conclude that the loan would bring in more money sold off to the highest available price to a single investor, MCM’s analytics can tell our clients whether it makes more sense to include the loan in a pool for a co-issue or securitization, or some other sales structure, as opposed to just going with an individual correspondent’s best price.

MCM works with both sellers of individual loans or portfolios, or with investors seeking specific loan products or pools.

This service is often purchased as a stand-alone offering, but MCM also provides this service to clients working with us through either type of standard relationship:

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 strategiesy. 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. 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