Tool aims to improve margin management for lenders
Mortgage Capital Trading has released a new tool that aims to help mortgage lenders better align their consumer pricing with backend capital markets executions.
The new product, called the Base Rate Generator, combines live agency pricing data, co-issue executions, aggregator pricing, and custom TBA pricing indications. This allows lenders to generate more accurate rate sheets and improve margin management.
Traditionally, generating accurate mortgage pricing that accounts for market dynamics has been a challenge for lenders. MCT said its direct integration with agencies, broker-dealers and aggregators enables a more precise and agile pricing system.
“The Base Rate Generator has helped us to put out a better rate sheet to our loan officers and third parties,” shared Brian Gilpin, chief financial officer and head of capital markets at Embrace Home Loans. “It has helped us to be more exact in our pricing, which, as a result, has generated more business for us.”
The new tool includes features to handle less liquid mortgage coupons, account for float carry and specified settlement dates, and manage spec pay-ups from investors. Lenders can also smooth pricing by blending the top executions rather than just taking the very best one.
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MCT is offering the Base Rate Generator as an add-on to its existing capital markets product suite or as a standalone service. The company will host a webinar on June 4 to provide more details on the new offering.
“The recent past has presented many challenges for our lender community – market volatility, illiquid coupons, and higher interest rates to name a few,” MCT chief operations officer Phil Rasori said in a Press release. “We’re proud of our on-going collaboration with clients to develop the best solutions to combat these challenges and preserve margins. The Base Rate Generator brings needed granularity and transparency to pricing in a way that has never been seen in our sector.”
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