MAXEX, a residential mortgage loan exchange, announced today the closing of a Series B investment round that was led by AGNC Ventures, an affiliate of AGNC Investment Corp. (“AGNC”) and included the participation of Moore Asset Backed Fund, LP and other repeat institutional and private investors. AGNC is the largest internally-managed mortgage real estate investment trust and an active investor in residential mortgage assets.
“I am thrilled to have AGNC’s support of MAXEX. We know that AGNC will be a great partner and bring enormous value to our business,” said Tom Pearce, CEO and chairman of MAXEX. “People are looking at what we’re building and our value proposition. It’s very simple. Buyers and sellers sign one standardized legal contract with MAXEX, and either sell loans to a broad universe of investors or buy loans from a broad universe of sellers all while trading with one counterparty – MAXEX.”
To date, MAXEX has traded more than $3 billion of conforming and jumbo loans. Loans aggregated through its exchange have been securitized through 22 different private label mortgage backed securities transactions. With the AGNC investment, MAXEX has raised over $90 million in capital to date.
“We are pleased to support MAXEX for the next phase of its growth,” said Sean Reid, senior vice president of Strategy and Corporate Development for AGNC. “MAXEX provides a valuable service to both buyers and sellers of residential whole loans through its exchange and central clearinghouse, in turn eliminating many of the traditional inefficiencies in the sector.”
Premier buyers trading on the MAXEX platform include Morgan Stanley, Goldman Sachs and Principal Bank as well as J.P. Morgan, who has been a strategic commercial partner since 2017. The company has a pipeline of over 20 marquee buyers including insurance companies, bank portfolios, REITs and Wall Street dealers in the process of joining the platform.
“Given the prospects that GSE reform could meaningfully change the secondary market landscape, lenders are concerned that their current liquidity could be impacted,” said Bill Decker, MAXEX’s President. “MAXEX provides a turnkey solution for lenders to efficiently access many qualified buyers, which provides pricing stability and broad market access.”
Former Federal Housing Commissioner and retired Mortgage Bankers Association CEO Dave Stevens recently called MAXEX “a really exciting platform that provides a consistent process to marry buyers and sellers of mortgages that eliminates the inconsistencies that have existed in the past. Common documentation combined with multiple investors bring both certainty and consistency to the market and will only improve liquidity to the housing finance system.”
MAXEX is leveling the playing field for market participants, providing access to a diverse pool of large buyers for its over 85 approved bank and non-bank sellers. Buyers benefit from this substantial supply without traditional counterparty management challenges – from credit review, contracting issues, dispute resolution and other operational aspects of maintaining numerous counterparty relationships – as MAXEX intermediates all trades and serves as the buyers’ sole counterparty.