MAXEX bolsters non-QM product line amid market volatility

MAXEX, a digital trading exchange backed by J.P. Morgan, has expanded its roster of non-qualified mortgage lending programs despite ongoing market turmoil.

“Non-QM lending programs for creditworthy homeowners that fall outside of current qualified mortgage guidelines are critical to the long-term growth of the US housing market,” the company said in a statement. “However, market volatility has left mortgage originators scrambling for liquidity in this growing market segment despite loan buyers’ increasing demand for non-QM loans. MAXEX’s multi-buyer to multi-seller platform provides reliable liquidity by enabling originators to access multiple leading buyers through a single counterparty.”

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Through its newly launched mortgage option, MAXEX will support the bulk, flow, and forward trading of non-QM loans, with loan balances of up to $3 million. The company said it aims to deliver non-QM liquidity by:

• Daily flow trading: set guidelines and competitive daily pricing on individual whole loans
• Forward trading: agreements to sell loan pools at a future date with pre-negotiated terms and pricing
• Bulk trading: the ability to sell closed loan pools to one or more buyers in a single transaction

“Access to reliable liquidity is critical to the growth of non-QM lending, which serves the growing number of gig economy workers, business owners and other underserved creditworthy borrowers with non-traditional income documentation,” said MAXEX chief revenue officer Brennan Walters. “The growth of this fragmented market requires standardization to meet the long-term needs of the consumer and the industry. MAXEX is committed to providing that, just as we have for jumbo loans.”