Mortgage Capital Markets

Past Projects

Selected Engagements

A representative sample of mortgage capital markets consulting for mortgage lenders and banks, spanning secondary mortgage market advisory services, whole loan trading advisory, mortgage portfolio valuation services, mortgage securitization advisory services, mortgage servicing rights valuation and advisory, MSR transactions, risk management, and operational build-outs.

Client names are withheld to preserve confidentiality. Engagements are described by institution type, scope, and outcome.

Secondary Mortgage Market Build-Out

Large insurance company

Engaged to build a secondary mortgage market department from the ground up for a correspondent channel, including mortgage loan trading, whole loan sales, and mortgage servicing rights strategy.

  • Designed secondary market infrastructure including pricing, hedging, and delivery workflows; established customer purchases and investor sales
  • Established investors for residential mortgage loans sold bulk.
  • Managed mortgage servicing rights (MSR) portfolio strategy, including MSR valuation, pricing, hedging, and MSR transactions.
  • Purchased loans from 200+ customers.
  • Established private-label securitization execution for jumbo loans.  This including purchasing loans, buy / sell  strategies for securities issued and participating in road shows.
  • Established agency seller/servicer sales both cash window and securization.
  • Recruited and trained secondary market staff
  • Implemented pipeline risk management and best-execution framework.  Also, established a private label secuitization for programs.

Outcome

Channel launched a fully operational secondary market desk, including buying and selling bulk, flow, forwards and other strategies.   utilizition  best execiution strategies to maximize .  Channel purchased and sold about $5 +billion profitably and issued 6+ private label securitizations.  Also managed and monitored risk management guidelines.

MBS & Mortgage Securitization Strategy

Bank Mortgage Lender — National

Provided mortgage securitization advisory and MBS consulting for a private label securities process issuing agency-eligible loans in the private markets.

  • Reviewed the accumulation (best execution) / hedging process for the loans.
  • Evaluated the process for issuing private label securities, including syndicate selection, fees, RMBS execution, and mortgage credit risk considerations.
  • Presented the findings to senior management.

Outcome

First securitization closed at $450M with oversubscribed order book. Execution spread improved by 18 basis points versus prior whole loan execution.  Made improvements to accumulating and hedging the loans to improve profitability, bank established established a programatic PLS program.

Non- QM capital markets strategy

Independent Mortgage Bank

Managed correspondent and retail channel pricing, hedging, and execution strategies for non-QM and agency MBS products, including non-agency MBS alternatives.

  • Priced and sell strategies for Non-QM programs including whole loan sales for PLS.
  • Managed the hedging and analytics
  • Sold loans to GSEs and evaluated agency PLS for alternative strategy.
  • Managed the scratch and dent sales of loans

Outcome

Establish whole loan sale strategy to wall street for PLS issuance.  Improved hedging / sales / pricing strategies for all products.

Mortgage Banking Strategy & Profitability

IMBs, banks and credit unions

Provided mortgage banking strategic consulting and mortgage capital markets risk management for lenders and banks to improve mortgage production, origination, execution, profitability, capital optimization, and balance sheet strategy.

  • implemeting a mandatory strategy for selling loans.
  • Managed building out of pricing strategies including pricing models (internal and exernal for customers)
  • Established hedging strategies to manage risk
  • Reviewed, implemented and presenting findings to senior management.

Outcome

Reviewed many capital markets teams and improved the strategies to improve profits for the organization.

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