Novaprime And Tradeweb Offer Innovative Solution For Mortgage Hedging
Novaprime, a mortgage technology company dedicated to making homeownership more affordable, announced a collaboration with Tradeweb, a global operator of electronic marketplaces for rates, credit, equities and money markets.
The collaboration leverages Novaprime’s lender-focused Loan Intelligence and Marketplace products and Tradeweb’s electronic trading execution platform, to offer a new solution for hedging mortgage-related risk for the mortgage industry. Built on the Canton Network, the solution aims to assist mutual clients of Novaprime and Tradeweb with reducing risk and hedging costs by offering automated hedging tools and integrated trading connectivity to Tradeweb.
“We believe loans should be committed and delivered the day of closing, and automating risk management including hedging is as essential to our goals as the loan commitments themselves,” said Linus Petrén, Chief Executive Officer of Novaprime. “This collaboration seamlessly integrates Tradeweb’s best-in-class electronic trade execution technology with our Loan Intelligence platform, a major step forward in increasing efficiencies and cost savings for lenders, and ultimately making homeownership more affordable.”
For lenders, hedging their pipeline is essential to protect against downside risk and requires daily management with repetitive tasks. Through this collaboration, we expect lenders and investors to be able to streamline hedging their pipeline and manage trades as they commit loans.
“We are pleased to provide Novaprime with access to our deep pool of mortgage liquidity to enhance and streamline the mortgage hedging process. By leveraging the Canton Network, we’re aiming to unlock new efficiencies across mortgage markets — as Tradeweb is looking to do in other markets as well. This is a strong example of how innovation can bridge traditional mortgage markets with the growing digital asset ecosystem,” said Chris Bruner, Chief Product Officer, at Tradeweb.
“Novaprime and Tradeweb’s collaboration highlights the growing momentum of the Canton Network to solve real-world financial market challenges,” said Yuval Rooz, Co-Founder and Chief Executive Officer of Digital Asset. “By enabling seamless connectivity and greater operational efficiencies, while also offering configurable privacy, Canton demonstrates how blockchain is delivering greater value across the mortgage markets.”
In January, Novaprime completed a STRATMOR audit demonstrating that its Loan Intelligence solution has the potential to become a market leader, transforming the mortgage document review process. The company made its public debut and official launch of its AI-powered Loan Quality Platform in October, which is designed to improve the mortgage process by quickly evaluating loan integrity, reducing processing time from weeks to just days.
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