MCT: Maximizing profitability in the secondary market

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Maximizing profitability in today’s secondary market requires a blend of human expertise and leading-edge technology. MCT provides a customizable solution that provides both with its HALO hedge advisory program and award-winning MCTLive! real-time hedging platform.

Because each lender has its own unique operation, MCT’s combined solution allows clients to choose for themselves which functions they will internalize and which they will rely on MCT to perform.

“MCTLive! is a product that is the result of a decade of experience working with our clients; it was truly developed by secondary marketing for secondary marketing,” said Tom Farmer, managing director.

MCT developed the secondary marketing trading platform to deliver a new level of information, analysis, and reporting to clients. The software gives lenders the ability to automate tedious functions, efficiently manage their loan pipeline, analyze performance and profitability down to the branch or LO level and provide detailed but clear reporting on all aspects of secondary performance. It is integrated with  market-leading LOS software to automatically retrieve and write-back data to those systems of record.

“MCT helps clients lift their profitability on their operations. We do the heavy lifting on hedging advisory and best execution analysis, while providing tools and technology for efficiency and clear reporting,” Farmer said.

Every MCT client is on a month-to-month contract and each month a client can make the choice to stay with MCT, move to another advisor, internalize the hedging function, or return to best efforts executions.

New MCT clients can engage and get up to speed rapidly without making radical changes to their existing operations so clients typically see profitability improvements from the first month of engagement and every month thereafter.

“The uptake and critical response has been hugely positive and MCTlive!  has become an overnight success with our clients and prospects,” Farmer said. “We expect MCTlive! to surpass 100 deployed clients by 2016.”

In fact, through MCTlive! and MCT LockCentral – the company’s centralized, outsourced lock desk service, MCT expects to see a 25% growth in clients this year.

“We are truly partnered with our clients and regularly provide value that is ‘outside’ our core focus on secondary,” Farmer said. “MCT provides education, transparency, and training to our clients to enable them to increase their secondary core competence.”

MCT has taken a proactive approach to easing its clients’ compliance burden in the midst of an increased regulatory environment. The company advises or recommends expert advisors to its clients on topics like LO compensation, fair lending and ATR practices, TILA-RESPA readiness and other recent or impending legislation, as well as holding MCT Exchange Events twice a year to give clients a platform to share best practices.

MCT also provides its clients with a complete due diligence package to ease their vendor management requirements. That package includes the annual SSAE 16 audit as well as other audits that have been performed on the MCT operations.

One of MCT’s lender clients was faced with the challenge of successfully making the shift from best efforts to a mandatory. They needed guidance and ongoing assistance to successfully do this, so the client was assigned a dedicated MCT Trading Analyst to work with.

“We gave our client hands-on support and daily direction, which allowed them to easily make the switch and realize greater profitability and effectively manage risk,” Farmer said.

The client also had a need to begin using secondary marketing technology. MCTlive! was introduced to them, which integrated with their LOS and allowed them to establish transparency, analytics, and receive real-time updates to their pipeline, enabling them to optimally price and hedge.

“We offer lenders a contemporary, easy-to-use secondary marketing technology platform, that when coupled with MCT’s hands-on, relationship-driven client support model, produces a very powerful combination for lenders to take advantage of,” Farmer said.

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