Full-Service Mortgage Pipeline Risk Management
The Heart of FCM’s Services is Customized Pipeline Risk Management and Reporting
FCM uses our proprietary software to analyze clients’ mortgage pipelines and provide them with the detailed information necessary to make intelligent and calculated decisions regarding their hedge positions. As part of our risk management services, we will:
- Analyze a client’s mortgage pipeline;
- Generate a daily Mark-to-Market: a snap-shot in time of what price a client can sell their loans for, net of the hedge;
- Provide a client with a daily “Shock Analysis”, which shows the value change of the overall position if rates were to move sharply and dramatically in either direction;
- Recommend the proper hedge position to neutralize the fallout and interest rate risks presented by a client’s mortgage pipeline;
- Execute transactions with authorized mortgage backed security dealers to mitigate risk on behalf of our client, at their discretion;
- Analyze execution options and sell client’s production to the optimal investor, and;
- Generate daily reports detailing all activity within a client’s position.
Reports to monitor data integrity and performance
- New loans entering the hedge.
- Loans that have been removed from the hedge including canceled, denied or withdrawn.
- Changes to key data points affecting your overall revenue, such as program, locked rate, locked price, to name a few.
- Loans open in the hedge yesterday that no longer are in the client download.
Reports to monitor hedge structure
- Open loan detail by hedge coupon and expiration month.
- Mortgage backed security open detail by coupon and settlement month.
Reports to monitor hedge position cash flow
- Liquidation value of entire open hedge position.
- Listing of all trades liquidated (paired off for future settlement) and the cash/revenue associated with those trades.
Reports to assist in selling your loans
- Reports to monitor when loans become available for sale, based on key statuses.
- Full Best Execution analysis utilizing the BEAST valuation tool, insuring you know the optimal investor and price for selling your loans.
- Loan Committed report showing the hedge valuation of your loans, and what price they were sold for. An instant view of how the hedge process is performing for YOU.