Resitrader, a provider of whole loan mortgage trade management software, announced the launch of an online marketplace that will allow originators, banks, servicers, brokers and financial advisors to exchange loan data, documents and pricing information in order to buy and sell whole loans.
The platform will enable secondary marketing professionals to scale more quickly by automating many activities currently supported through spreadsheets, Resitrader said in a release.
“This combination of secondary operations support with connectivity between buyers and sellers is believed to be unique in the mortgage industry,” the company said.
In a seller-controlled auction format, Resitrader’s platform will enable sellers of mini-bulk or specified pools of loans to structure offers while buyers either respond directly or build their own pools based on investment criteria.
The system allows multiple buyers and sellers the opportunity to offer, bid and transact simultaneously. The platform also includes an easy-to-use trade settlement process, Resitrader said.
The Resitrader platform will initially emphasize Community Reinvestment Act-eligible loans but expects to quickly expand into other types of loans.
"We're starting with CRA as that seems like a natural first step, given their geographic emphasis," said John Ardy, CEO of Resitrader.
"Buyers can search by census tract, income or other criteria to meet their investment needs,” Ardy said. “Resitrader provides the perfect context for offering, finding and purchasing loans needed to meet CRA audit findings."
Adry said that the company is already seeing jumbo and expanded criteria loans loading onto the platform, and said that he feels confident that the process will work for those loan products as well.
"With the rise of mini-bulk transactions and active price negotiation taking such a prominent role in today's market, a platform like Resitrader is long overdue, and not just for CRA-eligible loans," said Bill Dallas, CEO of Skyline Home Loans. "Long-term, this might transform the way loans are priced with real-time market data."