New York, NY and Atlanta, GA – April 7, 2015 – (RealEstateRama) — The Federal Home Loan Bank of New York (FHLBNY) and MAX Exchange (MAX), a multi-seller to multi-buyer exchange and clearing house for residential mortgage loans, announced a pilot program that will enable approved FHLBNY members to sell conforming and jumbo residential whole loan mortgages on an open exchange platform.
“Our mission includes helping to improve our members’ capacity to serve their markets,” said José R. González, president and CEO of the FHLBNY. “In partnering with MAX, we believe that this exchange can provide responsible local lenders with easy secondary mortgage market access and better execution.”
“MAX Exchange increases trust by delivering standardization, transparency and certainty, which we believe will increase confidence and level the playing field for buyers and sellers of all sizes in the secondary mortgage market,” said Tom Pearce, president and CEO of MAX. “The MAX Exchange provides a true peer-to-peer trading platform for the residential mortgage markets.”
The MAX Exchange is an independent market utility that provides an open exchange platform for buying and selling mortgage loans and includes secondary market settlement with objective loan reviews, life-of-loan surveillance and a fair and efficient dispute resolution process to protect both buyers and sellers. The Exchange delivers standardized products, guidelines and procedures that reduce transaction costs and provide buyers and sellers with a single pipeline through which they can trade with many qualified counterparties.
The pilot program will include a limited number of pre-approved traditional secondary mortgage investors as buyers and a limited number of qualified FHLBNY members as both sellers and buyers.
MAX Exchange is a wholly-owned subsidiary of MAXEX, LLC, a financial services technology company that has developed business processes and a technology platform to connect participants in the secondary mortgage market. See: www.maxex.com.
Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves more than 330 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America’s homebuyers.