Since 1994, Mortgage Capital Management (“MCM”) has worked with mortgage bankers to maximize profitability, minimize earnings volatility, and educate secondary marketing professionals. MCM is a mortgage banking, Pipeline Risk Management/Hedge Advisory Firm. MCM provides state of the art analytics, reporting, and coaching to and for its Clients. Our Clients consistently experience the following benefits:
- Increased Margins
- Stabilized Earnings
- Growth in Market Share
- Secondary Marketing Knowledge
MCM is a conservative company. We look at our Clients as manufacturers of widgets. A part of that manufacturing process is interest rate risk. We believe that if the rate sheet pricing set at any given moment includes a 150 basis point profit margin, it is the goal of the Secondary Marketing Manager to bring 150 basis points to the bottom line when the loans are settled with investors. MCM does not advise clients to speculate about the direction of markets, spreads, or volatility levels. MCM provides clients with many tools, techniques, and strategies that can improve Client profitability, but. . . taking a bias in the market has never and will never be a part of how MCM provides its services. This applies to both the coaching and risk management analytic aspects of the business.
MCM provides its state of the art online technology in three different formats: ASP, Cloud, or Self-Hosted environments.This provides unlimited ability to service Clients and creates the opportunity to match each Client’s needs. MCM provides Enhanced Hedging Strategies and Systems that include:
- Value At Risk Hedge Optimization
- OAS Hedge Ratio & Servicing Valuation & Analysis
- Extensive, loan by loan, Fallout and Timeline Analysis
- Best Execution Based Mark to Market and Pooling
- Builder Commitment Hedging & Pricing
- Float Down Lock Pricing & Hedging
- Option Strategies with Synthetics using cash securities and the CBOT
- Live Reporting, Analysis, and Scenario reviews
- Unique Trading Analysis – Diffusion Analysis
- Automated (execution based) Base Pricing tool
- Market and Client Risk Position Historical Database.
One part of our business formula that we believe sets MCM apart from the pack is the coaching aspect of how we do our business. It is our belief that if we empower our clients to be experts in the secondary marketing area, they will be better at what they do and the margins will arrive successfully.
MCM provides two types of relationships: Guardian and Partnership. The Guardian relationship sees MCM very involved in the day-to-day management of the secondary marketing risk position executing trades, directing traffic, training, etc…. The Partnership relationship is where the Secondary Marketing Manager is proficient and does not need our help managing the Risk Position nor the coaching required in a Guardian relationship. As the relationship with the Client matures and the Secondary Marketing Manager becomes more proficient, MCM will suggest that it may be time to move from the Guardian to the Partnership relationship. This transition is not mandatory, but is remains our goal to educate our clients and provide an ongoing service that benefits the entire organization. We have many Clients that, despite having the knowledge and capability, remain in Guardian accounts.
Mortgage Capital Management was founded to help mortgage bankers become more profitable through the use of best in class pipeline risk management tools and strategies in the mortgage industry. Our proven pipeline risk management services, secondary marketing consulting/coaching, and hedging/trading services help Clients remain profitable despite volatile markets and changing interest rates. By combining proprietary, state of the art technology with personalized Client service, that includes counsel from senior advisors, we are able to mitigate client interest rate risk, maximize their earnings, and improve operational efficiencies.