MAXEX, LLC, a residential mortgage loan exchange provider, announced today that it has successfully closed a $38 million new funding round led by Moore Asset Backed Fund, LP, an investment fund managed by Erik Siegel of Moore Capital Management, LP. GreensLedge Capital Markets LLC was the sole placement agent.
MAXEX’s prior Series A rounds brought in over $35 million from private equity and venture investors, including Ellis Capital, Fenway Summer Ventures and Bienville Ventures, bringing aggregate capital raised to date to more than $73 million. Additionally, J.P. Morgan has been a strategic commercial partner in MAXEX since late 2017.
MAXEX will utilize the additional funding to enhance its exchange operations and counterparty structure as well as continue to build out its innovative end-to-end cloud-based platform, which is transforming the trading of residential mortgages between participants in the secondary mortgage market. MAXEX’s exchange brings centralization, standardization, transparency, automation and a streamlined settlement process that translates into a more open, efficient and less risky secondary market.
MAXEX is now operational and has traded more than $2.3 billion of mortgage loans between select participants, including more than 80 approved sellers and buyers that range from bank and nonbank originators to a number of the most active Wall Street dealers. MAXEX has contributed loans into 16 separate private MBS securitizations and plans for a broader public launch later in the year. The company currently has over 50 employees and is seeking to add additional senior level positions to its team in technology, operations as well as sales and marketing.
“MAXEX has been quietly building technologies that will revolutionize the $2 trillion per annum secondary mortgage trading market and level the playing field for all participants,” said Tom Pearce, CEO and Chairman of MAXEX. “This next level of funding will enable us to further enhance our technology platform as the backbone for trading and settlement in the secondary mortgage market. We are pleased to have our new investors join our existing investor group as we prepare for a broader public launch.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.