Agile Enables Mortgage Industry’s First Fully-Automated AOT Transaction
Agile, a fintech bringing mortgage lenders and broker dealers on to a single electronic platform, has facilitated the 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 automated 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.
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