Philadelphia, PA – March 9, 2023 – Agile, a groundbreaking fintech bringing mortgage lenders and broker dealers on to a single electronic platform, today announced they have facilitated execution of the mortgage industry’s first ever fully-automated Assignment of Trade (AOT) transaction. AOTs are an increasing popular industry practice that involves three counterparties – mortgage originator, mortgage investor, and broker dealer – transferring loan collateral and hedge positions to a mortgage investor.
While MCT, the leading mortgage capital markets technology firm, had previously automated the process for loan collateral assignment between mortgage originators and mortgage investors, Agile has now closed the loop by automating the process for trade assignment between mortgage investors and broker dealers.
“Agile has been a ‘game changer’ for our firm’s daily overall TBA trading activities. The timeliness and effectiveness of Agile’s AOT automation has significantly impacted how our traders communicate and execute for our clients,” said Thomas C. McHugh, Managing Director, Head of Mortgage Group & Agency MBS Trading of J.V.B. Financial Group LLC. “From a back-office vantage point, the Agile system’s ease of implementation and straight-through trade processing has made this a seamless integration into our firm’s daily processes.”
Agile’s new AOT process replaces the manual and error-prone legacy work practices used by many broker dealers and mortgage investors. The legacy process includes printing, executing, and faxing tri-party agreements between all parties. Now, with all parties operating on the Agile trades database of record, a more seamless assignment process is enabled. Dealer to dealer assignments are also electronically executed on Agile.
“As a mortgage investor, Village Capital is always looking for ways to integrate technology to improve the price and efficiency for our lenders. Agile’s full automation of the AOT process allows us to pass along improved execution to our customers as well as improve the efficiency of processing the AOTs. Since everyone is using the same database of record, it greatly reduces any potential errors and speeds up the process of acceptance,” said Brandon Knudson, VP of National Correspondent Sales at Village Capital.
This new AOT functionality is now available to all Agile platform users. Mortgage investors and broker dealers interested in learning more about offering or automating a bid tape AOT channel should contact Agile for more information.
The industry’s first MBS fintech, Agile brings together lenders and dealers of all sizes onto a single platform. Agile facilitates the exchange of TBA MBS by securing and automating communication between mortgage lenders and broker-dealers. Agile digitizes the historically phone-based process to an electronic platform which may improve profitability and efficiency, while reducing administrative errors. Through its competitive TBA RFQ digital platform, mortgage lenders gain access to national and regional broker-dealers previously inaccessible on digital platforms, while broker-dealers gain access to an ever-growing network of lenders. Based in Philadelphia, Agile Trading Technologies supports a national network of clients with a team of capital markets professionals who have deep trading experience at financial organizations of every size.