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Vice Capital Markets Releases Integration with Freddie Mac Income Limits API

NOVI, Mich. -- Vice Capital Markets, a leading mortgage hedge advisory firm for independent lenders, banks and credit unions, announced today it is one of the first Freddie Mac-integrated Secondary Market Advisors (SMAs) to release an integration with Freddie Mac's Income Limits application programming interface (API). The API grants Vice Capital customers easy access to area median income (AMI) information to quickly determine if a loan meets the AMI percentage eligibility criteria for certain Credit Fee Caps.

"Affordability is top of mind for all lenders these days, and our clients are no exception," said Vice Capital President Troy Baars. "With the new integration to Freddie Mac's Income Limits API, Vice Capital allows our shared clients balance the desire to provide home financing options for mortgage-ready low to-moderate income borrowers while still meeting their secondary execution goals."

In late 2022, Freddie Mac announced targeted pricing changes, including eliminating upfront credit fees for certain borrowers and affordable mortgage products with specific limits on the borrower's income as a percentage of AMI. Integration with the Income Limits API empowers Vice Capital's clients to send income information and the property address to easily assess whether the borrower may qualify for the waiver of certain upfront credit fees. The API identifies loan criteria for the following conditions: High-Cost Area, 120% AMI, High Needs Rural Region Indicator and Rural Area Indicator.

Additionally, the API allows clients to access the area median income limit percentage for loans not currently locked in the pipeline by entering the state and zip code. Lenders can then use this information, along with Exhibit 19 Credit Fees and Exhibit 19A Eligibility Criteria for Credit Fee Caps, to determine if the loan may be eligible for a Freddie Mac Credit Fee Cap.

Income Limits is one of several integrated Freddie Mac APIs that Vice Capital leverages to help its clients extract maximum value from their relationship with Freddie Mac. Other integrated Freddie Mac APIs include Cash Purchase Settlement Statement and Cash-Released Xchange®.

"As an advisor to numerous Freddie Mac Seller/Servicers, these APIs make it tremendously easier for organizations like ours to access pricing and execute cash and guarantor commitments on behalf of our clients," Baars added. "Our long-standing SMA relationship with Freddie Mac is a point of pride for us, and we look forward to continuing to work alongside Freddie Mac to find new and innovative ways to meet our shared clients' individual secondary and capital markets needs."

About Vice Capital Markets:

Since 2001, Vice Capital Markets has successfully managed interest rate risk and maximized profitability on MBS trades and mortgage-related transactions for banks, credit unions and mortgage lenders of all sizes. With an average of more than 10 years' experience behind each of the traders on our team, Vice Capital has helped its clients realize, on average, a 25 to 55 bps improvement over their best effort execution, and Vice Capital's proprietary risk-management models and complex investor and agency best execution platform have consistently yielded safe and effective profit maximization for its clients. Learn more at https://www.vicecapitalmarkets.com/ or call (248) 869-8100.

Related link: https://www.vicecapitalmarkets.com/

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Business, Free News Articles, Software

Vice Capital Markets Releases API for Freddie Mac Cash Purchase Statement

NOVI, Mich. -- Vice Capital Markets, a leading mortgage hedge advisory firm for independent lenders, banks and credit unions, announced today that it is one of the first Freddie Mac-integrated Secondary Market Advisors (SMAs) to release an integration for Freddie Mac's Cash Settlement Purchase Statement application programming interface (API). The API simplifies the funding reconciliation process by providing direct access to cash purchase statement data for the loans sold to Freddie Mac, enabling lenders to quickly review and export purchase advice information.

"With the new Cash Settlement Purchase Statement API, Vice Capital provides our Freddie Mac-approved clients with streamlined access to cash purchase statement data, including funding details and loan-level credit fees," said Vice Capital President Troy Baars. "As a long-time integrated SMA, we deeply value our relationship with Freddie Mac and applaud them for continuously innovating to meet lenders' unique and varied secondary and capital markets needs."

Using the Cash Settlement Purchase Statement API, Vice Capital clients can access the full contract and loan level detail of each loan committed on a particular date directly through the Vice Capital client portal, leading to a faster and more accurate reconciliation process.

Founded in 2001, Vice Capital serves independent mortgage lenders and financial institutions of all sizes, with monthly mortgage production volumes ranging from $10 million to $5 billion a month. Last year, the company set a new internal trade volume record, trading more than $202 billion on behalf of its full-service clients, and experienced a marked increase in its client base, including more than 50% growth in the credit union space. Today, one in every 15 mortgages originated in the United States are traded by Vice Capital or hedged using its proprietary software.

About Vice Capital Markets:

Since 2001, Vice Capital Markets has successfully managed interest rate risk and maximized profitability on MBS trades and mortgage-related transactions for banks, credit unions and mortgage lenders of all sizes. With an average of more than 10 years' experience behind each of the traders on our team, Vice Capital has helped its clients realize, on average, a 25 to 55 bps improvement over their best effort execution, and Vice Capital's proprietary risk-management models and complex investor and agency best execution platform have consistently yielded safe and effective profit maximization for its clients.

Learn more at https://www.vicecapitalmarkets.com/ or call (248) 869-8100.

Related link: https://www.vicecapitalmarkets.com/

This news story was published by the Neotrope® News Network - all rights reserved. ID:NEO2022

Business, Free News Articles

Vice Capital Markets breaks internal trading volume record in 2021, helps clients achieve peak profitability

NOVI, Mich. -- Vice Capital Markets, a leading mortgage hedge advisory firm for independent lenders, banks and credit unions, announced today that the company set a new internal trade volume record last year, trading more than $202 billion on behalf of its full service clients. Using an advantageous mix of delivery and execution, the company was able to help its clients capitalize profitably on each trade.

"The past two years have been both chaotic and profitable for the mortgage industry, and Vice Capital Markets has worked hard to ensure our clients felt as little chaos in their hedging pipelines as possible," said Vice Capital Markets President Troy Baars. "That approach certainly paid off in 2021 thanks to the trust we have built with our clients over the years, but we would not have reached this internal trading record if our clients had not had such a stellar year in terms of volume, making this as much their achievement as it is ours."

In addition to the increase in annual trade volume, Vice Capital Markets also experienced a marked increase in its client base, including more than 50% growth in the credit union space in 2021.

"Vice Capital Markets has always placed a premium on serving all types of mortgage lenders and building communicative and collaborative relationships with our clients, a practice that continued last year," said Chris Bennett, Principal at Vice Capital Markets. "Our clients range in monthly production from $10 million to $5 billion a month, yet every client receives the same personalized care and attention to detail, allowing us to better meet their needs."

About Vice Capital Markets

Since 2001, Vice Capital Markets has successfully managed interest rate risk and maximized profitability on MBS trades and mortgage-related transactions for banks, credit unions and mortgage lenders of all sizes. With an average of more than 10 years' experience behind each of the traders on our team, Vice Capital has helped its clients realize, on average, a 25 to 55 bps improvement over their best effort execution, and Vice Capital's proprietary risk-management models and complex investor and agency best execution platform have consistently yielded safe and effective profit maximization for its clients.

Learn more at https://www.vicecapitalmarkets.com/ or call (248) 869-8100.

Related link: https://www.vicecapitalmarkets.com/

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Business, Free News Articles

Vice Capital Markets Commemorates 20 Years of Serving the Mortgage Industry’s Hedge Advisory and Secondary Execution Needs

NOVI, Mich. -- Vice Capital Markets, a leading mortgage hedge advisory firm for independent lenders, banks and credit unions, announced the firm is celebrating its 20th corporate anniversary. Since opening its doors in August 2001, Vice Capital Markets has helped countless clients properly and effectively manage interest rate risk and maximize profitability.

Vice Capital Markets began humbly as a one-person office with Principal Chris Bennett offering a personalized approach to each and every client. As Vice Capital Markets has grown over the past two decades, Bennett's bespoke methodology has remained the same, becoming one of the trademarks of the firm.

"I would like to thank both our Vice Capital team, as well as our clients, because we never would have made it 20 years without their dedication and support," said Bennett. "Over the years, our commitment to providing personalized care and attention to our clients has afforded us the opportunity to create lifelong relationships, not just business partnerships. Those relationships have ultimately been the secret to our success these past 20 years and I hope the next 20 years as well."

Throughout its history, Vice Capital Markets has pioneered technology solutions for its clients and partners, while still maintaining its commitment to customized, in-depth personal expertise. Today, 6% of all mortgages originated in the U.S. are traded by Vice Capital Markets or hedged using its proprietary software.

"As Vice Capital Markets has grown and technology has evolved, we've been able to develop innovative solutions for our clients without sacrificing the personal touch," said Vice Capital Markets President Troy Baars. "Often times, lenders are forced to choose between technology and experience, but Vice Capital offers both. We're proud to say we've been able to innovate for our clients while always remaining available for consultation."

About Vice Capital Markets

Since 2001, Vice Capital Markets has successfully managed interest rate risk and maximized profitability on more than half a trillion of MBS trades and mortgage-related transactions for banks, credit unions and mortgage lenders of all sizes. With an average of more than 10 years' experience behind each of the traders on our team, Vice Capital has helped its clients realize, on average, a 25 to 55 bps improvement over their best effort execution, and Vice Capital's proprietary risk-management models and complex investor and agency best execution platform have consistently yielded safe and effective profit maximization for its clients.

Learn more at https://www.vicecapitalmarkets.com/ or call (248) 869-8100.

Related link: https://www.vicecapitalmarkets.com/

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Business, Free News Articles, Software

MCTlive! Pool Optimizer Technology Sets New Bar for Best Execution Loan Sales

SAN DIEGO, Calif. -- Mortgage Capital Trading, Inc. (MCT®), a leading mortgage hedge advisory and secondary marketing software firm, debuted upgraded MCTlive! Pool Optimizer functionality at its MCT Exchange client conference last month. The technology enables secondary marketing managers to use actual cash window execution for optimization on each individual loan rather than using a dealer survey for spec pay-ups.

"Depending on loan sale size, the tool looks at millions of iterations of execution options while doing the optimization process on a specified set of loans, creating a factorial to compute the optimal pooling solution," said MCT COO, Phil Rasori. "When you have a large number of high balance loans and you're trying to fit them into the 10% de minimus rule, this will make the ideal allocations, whether a specific product or in a pool with high balance."

The MCTlive! Pool Optimizer involves both the cash window commitment process as well as MBS optimization, rather than solely MBS pooling or delivery, allowing for full pricing granularity specific to all available executions. The cloud-based, scalable technology infrastructure of MCTlive! supports analysis of the millions of possible combinations at unprecedented speed. Calculations are made on real-time spec pool pay-ups with MCT's API connectivity and sets a new standard when defining optimal pool allocations.

"The system reviews the open pipeline and accounts for all co-issue commitments across the three agencies, 50 aggregators and 10 co-issue buyers. With 'cross commitment optimization' you can check, for instance, Fannie direct against co-issue Servicing Marketplace, placing each loan in the best place," explained Andrew Rhodes, Director of Trading at MCT. "This upgraded functionality is a game-changer for the majority of lenders looking to do pool optimization across both cash window and MBS executions."

The new Pool Optimizer received a warm welcome at MCT Exchange, where nearly three hundred lenders and partners reacted to its virtual debut with eager anticipation. As one of the many tools in MCT's cloud-based capital markets software platform, MCTlive!, Pool Optimizer is now available to clients. Those interested in learning more about the MCTlive! Pool Optimizer features, benefits, or how to begin using the module are encouraged to contact MCT for more information: https://mct-trading.com/solutions/.

About MCT:

Founded in 2001, Mortgage Capital Trading, Inc. (MCT) has grown from a boutique mortgage pipeline hedging firm into the industry's leading provider of fully integrated capital markets services and technology. MCT offers an array of best-in-class services and software covering mortgage pipeline hedging, best execution loan sales, outsourced lock desk solutions, MSR portfolio valuations, business intelligence analytics, mark to market services, and an award-winning comprehensive capital markets software platform called MCTlive! MCT supports independent mortgage bankers, depositories, credit unions, warehouse lenders, and correspondent investors of all sizes.

Headquartered in San Diego, California, MCT also has offices in Philadelphia, Los Angeles and Dallas. MCT is well known for its team of capital markets experts and senior traders who continue to provide the boutique-style hands-on engagement clients love.

For more information, visit https://mct-trading.com/ or call (619) 543-5111.

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Media Only Contact:
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619-618-7855
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Uncertainty Due to Short-Notice FHFA Directive Amplifies Harm to Borrowers

SAN DIEGO, Calif. -- Mortgage Capital Trading, Inc. (MCT), a leading mortgage hedge advisory firm, analyzed the potential effect of Wednesday's fifty basis points worsening in prices paid by Fannie Mae and Freddie Mac for most mortgage refinances. According to data from the MCTlive! secondary marketing software platform, MCT estimates increases in borrower rates of up to 0.375%, leading to the average borrower paying as much as an additional $21,000 over the typical thirty-year loan term.

"These FHFA-directed price adjustments do more than work against the hopeful economic rebound and the original agency charters, they undermine trust and spur uncertainty at a crucial time. Who knows where the next no-warning directive will strike? Non-owner-occupied loans? High loan-to-value?" commented Phil Rasori, COO of MCT. "The only way lenders can protect themselves from these risks is to increase margins across the board, according to our analysis on the order of seventy-five to one hundred basis points in total."

The result of these margin increases, exacerbated by the twenty-day notice driven by the Federal Housing Finance Administration (FHFA), will be higher housing costs to borrowers at a time where many are in need, and a drag on the economy overall. The short notice amounts to effectively no time for lenders and borrowers to react, as the typical thirty-day rate lock and the practice of "floating" a rate hurt both respectively in this case. Beyond the issue of timing, these actions are perpendicular to the efforts of the Federal Reserve and the administration to assist consumers and stimulate the economy in the face of the COVID-19 pandemic.

MCT's analysis indicates the average $280,000 American mortgage will cost an additional $58 per month, $2,800 in the first four years, and $21,000 over a thirty-year term. For comparison, the average California mortgage of just under $400,000 would cost an additional $82 per month, $3,900 in the first four years, and almost $30,000 over the full term. Due to the current near-record low-rate environment, the typical lifespan of a mortgage can be expected to increase significantly, lengthening the borrower impact of the agency price changes and associated uncertainty. MCT calculates that these cost increases will be 34% higher than they would have been if the new Fannie Mae and Freddie Mac fees were simply passed-through to borrowers, indicating the significant effect of lender uncertainty due to the way the changes were communicated.

"Whether or not economic headwinds justify these 'adverse market' fees, their needlessly short-notice implementation introduced ongoing risks and increased negative impacts to borrowers," said Curtis Richins, President at MCT. "A more traditional 90-day notice would have minimized uncertainty and borrower cost increases with a negligible difference in the long-term capitalization of Fannie Mae and Freddie Mac."

MCT serves over three hundred lenders and manages over twenty percent of the US secondary market for mortgages. Based on this data, MCT will continue to monitor and analyze ongoing developments stemming from these FHFA-directed price changes. Further analysis and mortgage market volatility guidance is available.

About MCT:

Founded in 2001, Mortgage Capital Trading, Inc. (MCT) has grown from a boutique mortgage pipeline hedging firm into the industry's leading provider of fully integrated capital markets services and technology. MCT offers an array of best-in-class services and software covering mortgage pipeline hedging, best execution loan sales, outsourced lock desk solutions, MSR portfolio valuations, business intelligence analytics, mark to market services, and an award-winning comprehensive capital markets software platform called MCTlive! MCT supports independent mortgage bankers, depositories, credit unions, warehouse lenders, and correspondent investors of all sizes.

Headquartered in San Diego, California, MCT also has offices in Philadelphia, Santa Rosa, Los Angeles and Dallas. MCT is well known for its team of capital markets experts and senior traders who continue to provide the boutique-style hands-on engagement clients love.

For more information, visit https://mct-trading.com/ or call (619) 543-5111.

Related link: https://mct-trading.com/

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Business, Free News Articles

Vice Capital Markets Sets Internal Record for Monthly Trade Volume

NOVI, Mich. -- Vice Capital Markets, a leading mortgage hedge advisory firm for independent lenders, banks and credit unions, announced today that the company has more than doubled its monthly trade volume over a 90-day period, setting several internal records. Trade volume totals reached during this period include $11.5 billion in March, $13.4 billion in April and $12.4 billion in May.

"Despite the market chaos brought on by the COVID-19 pandemic, our clients were able to make it through that period with flying colors and take advantage of low interest rates to grow their pipelines," said Vice Capital Markets President Troy Baars. "Since then, margins have increased across the board from their early-pandemic lows, and with the spread between best effort and mandatory execution leaning solidly in the latter's direction, Vice Capital has been able to help our clients capitalize on these favorable market conditions to their financial benefit."

In addition to the increase in monthly trade volume, Vice Capital Markets also experienced a 13% increase in its client base over April and May. Baars attributes the growth to Vice Capital's growing reputation for helping its clients successfully navigate the market challenges brought on by COVID-19, with Vice Capital collectively garnering more than $8 million for its clients in a single day during the early days of the pandemic.

"Communication and experience are two key elements to the lender-hedge advisor relationship, especially in periods of tremendous uncertainty and market volatility," said Baars. "Even during the most chaotic days of the pandemic, Vice Capital clients received at least daily, if not more frequent, updates and insights from our executive team, and with an average of 10-or-more years' experience behind each of our trade desks, our clients could rely on their day-to-day contact to provide real-time advice at a time when market conditions were changing by the second."

For more information on working with Vice Capital Markets, contact Scott Colclough at (248) 869-8100 or scolclough@vicecapitalmarkets.com.

About Vice Capital Markets

Since 2001, Vice Capital Markets has successfully managed interest rate risk and maximized profitability on more than half a trillion of MBS trades and mortgage-related transactions for banks, credit unions and mortgage lenders of all sizes. With an average of more than 10 years' experience behind each of the traders on our team, Vice Capital has helped its clients realize, on average, a 25 to 55 bps improvement over their best effort execution, and Vice Capital's proprietary risk-management models and complex investor and agency best execution platform have consistently yielded safe and effective profit maximization for its clients. Learn more at https://www.vicecapitalmarkets.com/ or call (248) 869-8100.

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Related link: https://www.vicecapitalmarkets.com/

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