The Federal Home Loan Bank of New York is partnering with an Atlanta-based company to provide members with a loan exchange platform to sell their conforming and jumbo mortgages.
The New York home loan bank is teaming up with MAX Exchange. The company, which bills itself as a peer-to-peer exchange for mortgage buyers and sellers, is in the final stages of building out its platform.
"In partnering with MAX, we believe that this exchange can provide responsible local lenders with easy secondary mortgage market access and better execution," said José González, president and chief executive of the FHLBNY, in an April 7 press release.
Tom Pearce, MAX Exchange's president and chief executive, said in an interview that the exchange should be up and running early in the third quarter. He said members of the New York home loan bank, which will be able to seek approval under a pilot program to sell whole loan mortgages on the exchange, may be the first to use the platform.
Under the pilot program, fixed-rate and floating rate conforming loans of up $417,000 that meet Fannie Mae and Freddie Mac guidelines could be sold via MAX. The exchange will also be open to jumbo loans.
A former Bear Stearns veteran, Pearce formed MAX Exchange in 2012. The platform "increases trust by delivering standardization, transparency and certainty, which we believe will increase confidence and level the playing field for buyers and sellers of all sizes in the secondary mortgage market," Pearce said in the press release.
