Mortgage hedge advisory and secondary marketing software firm Mortgage Capital Trading, Inc. released a new marketplace for co-issue loan sales this week.
Co-issue loan sales, also known as flow-based mortgage servicing rights sales, are three-way transactions involving the sale of loans to one of the agencies, with a simultaneous sale of the MSRs to a separate third party.
The new marketplace, dubbed BAMCO, has been added to MCT’s whole loan trading platform.
“BAMCO is the latest step toward realizing MCT’s vision of every loan being priced to every investor, supporting true best execution for sellers and a more efficient market for borrowers,” said Justin Grant, Senior Director, Head of Investor Services at MCT. “Historically, lenders have had far more whole loan outlets than co-issue outlets – we’re seeking to change that with BAMCO.”
BAMCO supports live, flow-based, loan-level MSR pricing, expanding execution options for sellers while creating new client acquisition opportunities for buyers.
MCT said that BAMCO features direct co-issue pricing for both approved and unapproved buyers. Co-issue buyers have the choice to deliver standard grid-based co-issue pricing or loan-level bid tape co-issue pricing.
The agencies, Fannie Mae and Freddie Mac, have both been pushing for co-issue loan sales in recent years. MCT said that co-issue transactions represent 16% of all loan sale types by MCT’s lender client base in 2022.
There is no additional cost for MCT’s hedging clients to use BAMCO.
MCT earlier this month announced the appointment of Jennifer Kennelly as the new senior director of its investor services team.