According to the company news release, the investment will be used to “accelerate the widespread adoption of the MAXEX exchange platform for buying and selling loans in the US non-agent mortgage market.” Existing investors AGNC Ventures and Moore Asset Backed Fund, LP have also participated in this new investment, the terms of which have not been disclosed.
MAXEX, which claims to be the first digital mortgage exchange to trade home loans through a single clearinghouse, says the investment is taking place during a “record growth” period. The company has more than tripled its volume since 2019 and surpassed $ 20 billion in cumulative trade blocking volume since the launch of its platform at the end of the first quarter.
MAXEX, which provides liquidity for the non-agent house mortgage loans, states that its platform is being used by lenders and investors to “significantly reduce the costs and risks associated with the acquisition, securitization and sale of mortgage loans.” More than 200 US financial institutions have used their own standardized MAXEX contracts for trading on the exchange.
This investment comes at a time when the US Consumer Protection Bureau (CFPB) is examining mortgage services under a microscope because PYMNTS reported in April. At the time, the CFPB proposed new measures, including a verification process, that would prevent mortgage servants from initiating a foreclosure before the end of this year.
The plan was to test whether mortgage services actually followed programs set up during the COVID crisis to protect needy homeowners. Some companies are accused of not providing assistance or being discriminating about the distribution of assistance. “We are very concerned and are monitoring the situation closely,” a CFPB official said at the time. “Our supervisory team is pushing for more data from service centers than ever before.”
Tuesday (June 22), Reuters reports that the agency should adopt new rules that will allow borrowers to resume mortgage payments until 2022.