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Federal Home Loan Bank of New York and MAX Exchange Pair Up to Expand Mortgage Services

jobline-handshakesThe Federal Home Loan Bank of New York this week announced that it will partner with Atlanta-based mortgage clearing house Mortgage Asset Exchange (MAX Exchange) to launch a pilot program that will allow certain FHLBNY members to sell conforming and jumbo residential whole loan mortgages on an open exchange platform.

The deal with MAX Exchange, a multi-seller to multi-buyer exchange and clearing house for residential mortgage loans, introduces a peer-to-peer mortgage trading platform to FHLBNY’s network of 12 regional banks that serve 340 financial institutions in New York, New Jersey, Puerto Rico, and the U.S. Virgin Islands. 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.

"Our mission,” said FHLBNY president and CEO Jose Gonzalez, “includes helping to improve our members' capacity to serve their markets.” Gonzalez went on to say that in partnering with MAX, the bank will be able to “provide responsible local lenders with easy secondary mortgage market access and better execution."

Tom Pearce, president and CEO of MAX Exchange, said that the standardization and transparency provided by his company will “level the playing field for buyers and sellers of all sizes in the secondary mortgage market."

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, according to a joint statement by MAX and FHLBNY. The aim of the exchange is to reduce transaction costs and provide buyers and sellers with a single pipeline through which they can trade with many qualified counterparties, something FHLBNY is hoping to extend to its preferred customers.

About Author: Scott_Morgan

Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He's been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing.

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