Plano, Texas-based Optimal Blue, a leading provider of secondary marketing automation to the mortgage industry, has announced the acquisition of Resitrader, creating the mortgage industry’s largest mortgage loan trading platform. With this addition, Optimal Blue now supports $750 billion of transactions each year across its Digital Mortgage Marketplace, including nearly $600 billion of rate locks processed through its product and pricing engine, and more than $150 billion of transactions through its hedging solution.
Since its founding in 2015, Resitrader has focused on bringing automation and transparency to the spot market for mortgage loans. Resitrader’s interactive trading environment enables buyers, sellers, and their advisors to transact in real time using an auction process and replaces the widely-used method of exchanging bid tapes via email. Their solution also helps traders optimize executions by supporting shadow-bidding, the posting of axes, chat-based communication, and color reports. Resitrader has achieved remarkable success with its trading platform over the past year, recording a 400% increase in transactions.
“Two years ago, Optimal Blue set out to build a Digital Mortgage Marketplace that facilitates transactions between originators, investors, and the providers both use,” said Scott Happ, CEO of Optimal Blue. “This acquisition is another key step in that journey. Resitrader is the clear market leader in bringing efficiency, transparency, and security to a critical and expanding segment of the mortgage market, and we are excited to offer this innovative solution to our clients.”
The company anticipates major expansion in trading volume in the coming year, and will integrate the platform with Optimal Blue’s hedging solution, substantially expanding the company’s capabilities in the bulk bid market, an execution widely used by lenders employing a mandatory delivery strategy. More than 50 buyers are already active on the platform and over 150 sellers are expected on the platform by year end. Additionally, Optimal Blue seeks to expand third-party relationships with hedge advisors and whole loan traders needing access to the bulk market.
“We are thrilled to join an organization that shares our vision of creating the industry’s premier platform for trading mortgage loans,” John Ardy, CEO of Resitrader said. “With Optimal Blue’s backing, I expect Resitrader to continue its rapid growth, bringing depth and breadth to the market.”
Ardy, Seever Sulaiman, CIO of Resitrader, and the entire Resitrader team joined Optimal Blue upon close of the transaction. According to Happ, “John and Seever are proven innovators and bring considerable experience in building trading platforms to our team. There is no limit to what we can do together.”