Digital Mortgage Exchange and Loan Aggregator maxx announced Monday that it has closed an equity investment round and partnership to expand liquidity amid recent market volatility. Terms of the transaction were not disclosed.
Thank you for reading this post, don't forget to subscribe!The investment round was jointly led by the financial institution South Street Securities Holdings and investment firms Atlas Merchant Capitalpresided over barclays CEO Bob Diamond. (Atlas also has a minority investment in South Street.)
The three companies will collaborate to accelerate industry adoption of MAXEX’s platform and expand access to MAXEX and South Street products and services. The companies claim that they collectively serve over 500 market participants.
Many existing MAXEX investors are also involved JP Morgan And Moore Asset Backed Fundalso participated in the round.
houlihan loki Acted as financial advisor to MAXEX.
“MAXEX’s mission is to serve as a market utility and provider of liquidity to the US mortgage markets,” said Tom Pearce, MAXEX CEO, chairman and co-founder, in a statement. “This partnership enables us to further accelerate our growth, expand our product suite and broaden our network.”
As part of the deal, South Street will provide capital support to MAXEX’s existing clearinghouse facility.
“This will further enhance MAXEX’s counterparty strength by leveraging South Street’s investment-grade rating and approximately $30 billion balance sheet,” the company said in a statement.
According to Jim Tabachi, President and CEO of South Street, “The recent market volatility underscores the need for fundamental change in the mortgage secondary market as lenders and investors are forced to deal with rapidly rising rates, a lack of liquidity and greater agility.” Struggled to adapt to the need.” , resilient infrastructure.”
The deal with MAXEX expands access to a wide range of non-agency and agency-qualified mortgage loan programs.
“This partnership enhances our offering and the TBA pipeline hedging platform by providing clients with access to MAXEX’s debt trading exchange,” said Tabachi.
In May 2022, MAXEX launches a DSCR [debt-service coverage ratio] Loan-to-purchase program for originators seeking to meet growing mortgage demand from individual and small business real estate investors, such as rental property owners, who “prioritize the property’s cash flow over the interest rate”.
The company also announced that it has expanded its wholesale and forward trading loan programs.
In September 2022, the digital mortgage platform unveiled a series of new programs designed to serve originators and loan buyers in the growing non-QM loan market.
