Resitrader Inc., a provider of whole loan mortgage trade management software, has launched an online marketplace that will enable loan originators, banks, servicers, brokers and financial advisors to exchange loan data, documents and pricing information in order to buy and sell whole loans.
The platform allows secondary marketing professionals to scale more quickly by automating many activities currently supported through spreadsheets, Resitrader Inc. says in a press release. The platform provides a level connectivity between buyers and sellers that is unique in the mortgage industry.
In a seller-controlled auction format, the online platform will enable sellers of mini-bulk or specified pools of loans to structure offers while buyers either respond directly or build their own pools based on investment criteria.Â The system allows multiple buyers and sellers to offer, bid and transact simultaneously – and includes an easy-to-use trade settlement process.
The platform will initially emphasize Community Reinvestment Act-eligible loans but expects to quickly expand into other types of loans.
‘With the rise of mini-bulk transactions and active price negotiation taking such a prominent role in today's market, a platform like Resitrader is long overdue, and not just for CRA-eligible loans,’ says Bill Dallas, CEO of Skyline Home Loans, in the release. ‘Long-term, this might transform the way loans are priced with real-time market data.’
‘We're starting with CRA as that seems like a natural first step, given their geographic emphasis,’ adds John Ardy, CEO of Resitrader. ‘Buyers can search by census tract, income or other criteria to meet their investment needs. Resitrader provides the perfect context for offering, finding and purchasing loans needed to meet CRA audit findings.’
‘We're also seeing jumbo and expanded criteria loans loading onto the platform, so we know the process will work for those loan products as well,’ he adds.
Resitrader reports that it is partnering with a national technology service provider to launch the new trading platform.