MCT Enhances Its Best Execution Services
In an effort to outpace existing competitor offerings and capture additional business, hedge advisory firm Mortgage Capital Trading Inc. (MCT) has added a number of new features to its best execution service offering.
The enhanced service is an extension of MCT’s existing best execution methodology, which is traditionally offered with its proprietary hedging services.
The option to leverage the new feature set is ideal for lender clients interested in deepening their retain/release decisioning processes and cash management concerns, the firm says in a press release.
The firm’s best execution service now offers additional dimensions of time to payback, cash drain, corporate tax structure, subservicing terms and mortgage servicing rights (MSR) financing possibilities, which the firm says are not available in other best execution models.
“Lenders, especially non-bank mortgage companies, need to be acutely aware of their cash needs and balance sheet liquidity, in addition to getting the best economics out of a loan sale,” says Phillip Laren, director of MSR services at MCT, in a release. “The enhanced best execution tool provides analytics to compute cash loss after adjusting for tax impact, months to breakeven and any lift through MSR financing. It’s unique in that it analyzes servicing options not just from a secondary marketing perspective, but also from the financial management side of the business by considering cash spent to retain and when it may eventually be recovered.”
MCT’s best execution model is completely customizable to actual subservicer costs, tax structures and financing terms.
“What if” scenarios can be set to run different scenarios to empower a chief financial officer and secondary trader with data to determine the best decision based on economics, cash, balance sheet and tax optimization concerns, the company says.
Flatirons’ Risk Management System Now Integrated With Resitrader’s Whole Loan Platform
Flatirons’ FCM Risk Management system is now fully integrated with Resitrader’s mortgage loan trading platform, enabling clients of both firms to sell their loans through Resitrader’s platform while, at the same time, hedging their positions instantly.
Flatirons Capital Management (FCM) is a Williamsburg, Va.-based secondary market service provider that helps residential mortgage lenders hedge their portfolios against interest-rate risk. The two companies announced the integration during the Mortgage Bankers Association’s 2016 Annual Conference & Expo held in Boston.
The integration means clients of Flatirons can instantly offer their available loans for sale to investors bidding through Resitrader’s platform.
The FlatIrons Rapid Execution (FIRE) Trading System, now powered by Resitrader, will be available to all clients of Flatirons, as well as those not using the firm, for hedging and secondary marketing services.
“With bulk packages becoming a more vital method of selling loans, it was important for us to either develop our own system or partner with someone that had the technology already,” says Brent Buckmaster, executive vice president and partner at FCM. “Resitrader not only offers that ability – it has a best-in-class system that fits perfectly with the direction we are moving at FCM. The tools provided by FIRE, combined with the integration of Resitrader into our risk management system, put us at the head of the class.”
Clayton Holdings Promotes Andy Pollock To Chief Revenue Officer
Andy Pollock has been promoted to chief revenue officer at Clayton Holdings, a provider of loan due diligence, surveillance, real estate owned management, consulting, valuation, title and settlement services.
Pollock joined Clayton in October 2015 as senior managing director and head of consulting services. He has more than 25 years of operational and consulting experience in all phases of lending and servicing. He previously worked at First Franklin, where he held several senior positions, including president and CEO. Most recently, he was president and CEO at WDB Funding, an alternative commercial lending company.
Pollock was also founder and managing partner of Global Logic Advisors, a financial services consulting firm that focuses on corporate planning, operations, risk management, regulatory compliance, finance/accounting, process improvement and project management.
In his new role, Pollock will lead Clayton’s efforts to drive its revenue streams and identify new opportunities for growth. He will also lead the enterprise sales and consulting strategy across the firm and its subsidiaries.