Your Competitive Advantage!
We increase your profitability and reduce risk
Lenders who succeed in today’s market will be the ones who create an extremely profitable process. While some will be successful at targeting their marketing, increasing new loan applications, and streamlining the loan origination process, they will fall short when it comes to overall execution.
The difference between a highly profitable mortgage lender and a mediocre one often comes down to the methods and tools they use to minimize risk and maximize profitability. There are many ways to run the lender’s secondary marketing operation but knowing the difference between the most and least effective ways is a key differentiator.
How to profit by avoiding the profit center approach
Many lenders set up their secondary marketing department as a profit center, but that’s the wrong approach. Secondary marketing is part of the lender’s core operation and should be staffed with professionals who are compensated for keeping it running in an optimal fashion.
The big mistake many lenders make is setting up this critical department as a profit center and then compensating their managers solely on gain on sale profitability. This is one of the surest ways to lose money (for more ways to mess up your secondary marketing, download our eBook here).
There is a better way. This is our forte and we have successfully helped hundreds of lenders achieve better results.
The support you need from a company you can trust
Since 1994, Mortgage Capital Management has helped mortgage bankers of every size become more profitable through the use of best-in-class pipeline risk management tools and strategies. Our pipeline risk management services, secondary marketing consulting, and hedging/trading services enable clients to prosper in any market environment.
Since 1994 the U.S. mortgage industry has called upon Mortgage Capital Management for expert advice and proven technologies all designed to deliver optimal results in services and software to deliver a more profitable enterprise. Our customer list includes some of the most successful firms in the business.
Lenders call on us to combine our state-of-the-art technology with personalized client service to help them develop a secondary marketing operation that consistently delivers optimal results for the loan products they originate, regardless of market dynamics. We provide a customized set of services designed to meet the specific needs of our customers. Our services always come with expert counsel from senior advisors who have a history of success.
The services you need for success
We offer a full menu of services that are custom bundled into the solutions our clients need. They include:
Price
Price to your optimal best execution and ensure profitability and competitiveness, regardless of market conditions
Hedge
Superior OAS-based analytics for TBA, Pipeline and Servicing exposure to minimize basis risk and volatility.
Lock Flex
Pricing and hedging of float down locks and builder commitments customized for the current market.
Maximize Gain
Total Sale Optimization – a game theory approach that maximizes gain on sale which has transformed secondary marketing departments across the industry.
AI Fallout Prediction
Deep Learning AI Fallout Analysis to reduce risk and avoid Pair-Off losses.
MCM has expanded its product and service offerings to include servicing valuation and hedging in either a stand-alone or enterprise-wide hedging and valuation solution. For example, clients can have MCM hedge the value of their servicing portfolio as a stand-alone activity or combine it with pipeline hedging.
Given that most independent mortgage bankers lack the portfolio to counteract the changes of mortgage servicing rights other than to boost originations during refi-waves, MCM has developed and refined its core offerings, technology and service to include servicing hedging and valuation.
Whether you plan to hold servicing for the long haul or sell servicing rights in the not-too-distant future, we can set our hedge parameters around your desires and coverage needs. We can also value your servicing in an OAS manner that provides what it is worth to your company not just what it is worth to a buyer or accounting.
Viewing the online demo costs you nothing and will shed light on a unique approach to secondary marketing success that you won’t find anywhere else. We’re also open to discussing your unique requirements to arrive at a workable solution that will help you achieve your unique goals. Once you see what’s possible with modern financial services technology, your successful future will begin to come into focus. Don’t settle for mediocre when excellence is achievable.
Get the MCM Competitive Advantage! Call us to today to learn more or schedule an online demo: 858.483.4404 x220
Call us to today to learn more or schedule an online demo
Learn About Our Products & Services
Learn more about our products and services and how they are being used to increase lender profits.
Quantos – LockFlex Program – powered by MCM
LockFlex (Rate Protection Plans) Versus Renegotiations When executed properly, the costs associated with a rate protection plan like LockFlex should be more than offset by the increased returns it generates. Lenders use a variety of hedging techniques to reduce their exposure to systemic and interest-rate risk. Hedging is sound business practice, especially in mortgage banking. But after decades of predominantly falling or stable […]
Two Wrongs Can Make a Right
When managing Gain on Sale through hedging a mortgage pipeline, it is possible in more than one way that two wrongs (i.e., two different errors in critical estimates) can make a right. This blog will explain this phenomenon and help you avoid having to rely on two wrongs making a right by suggesting a course of action where two rights always make a right.
Mortgage Options
If you are in the mortgage business, you are in the options business. This blog will detail what that means if you are a loan originator, but it also applies if you are a servicer as well as borrowers once getting a loan have the option to prepay at any time.
MCM AI Fallout Announcement – CloseLytics
Two Months ago, MCM announced its new Artificial Intelligence Fallout Analytics Service: “CloseLytics.” MCM’s founder said: “The guessing game of what’s my mortgage pipeline exposure is over….”
AI Deep Learning Q1 Fallout Recalibrations In Process
MCM has started Fallout Recalibrations based on Q1 results through our AI Deep Learning capabilities and tools.
MCM 2023 Update
During 2023 MCM completed the following system updates:
MCM Announces New OAS Servicing Valuation Software and Service
MCM has developed, refined, and utilized over the past 29 years OAS Based servicing valuation software for hedge management and best execution purposes. The idea behind our new offering is to provide a Cloud based system and framework that lets customers value servicing assets on a loan level basis using their own assumptions.
MCM AI Fallout Announcement – CloseLytics
MCM has announced its new Artificial Intelligence Fallout Analytics Service: “CloseLytics.” MCM’s founder states: “The guessing game of what’s my mortgage pipeline exposure is over….”
Mortgage Banking Decision Science
AI has many applications in the mortgage industry and too many to mention in this short blog. Many companies have significant amounts of data from previous borrower transactions and in pipeline data from potential borrowers. The required types of data and the storage of data is different for different parts of your company.
Turning On Neural Brain Network Tunes in Better Fallout Prediction
Since 1995 MCM has been working with Neural Networks for various projects including fallout prediction on a loan level basis. Initially the technology was slow and less than optimal, however, with the new tools, speed of processing available and techniques we have developed, Neural Networks/ AI has come to fruition.