MIAC provides mortgage pipeline management and hedge advisory solutions tailored specifically to the goals of your organization. MIAC can price your originations, execute your hedges, generate your pool files and limit the pipeline’s market risk while optimizing your best execution.

Pipeline Hedge Advisory Services

MIAC provides comprehensive pipeline management and hedge advisory services tailored to meet the needs of each client, including transitions from best-efforts to mandatory deliveries and from servicing-released to servicing-retained. Our team of highly experienced capital markets and risk management professionals uses MIAC MarketShield® technology to provide the precision and transparency necessary to reduce hedging risks and improve our clients’ secondary market execution. Available services include:

Fallout Analysis and Modeling
  • Comprehensive loan fallout analysis and pull-through modeling to optimize pipeline sensitivity measurement
  • Fallout performance reporting by business unit, loan officer or correspondent client
  • Creation and maintenance of a multi-dimensional and market dynamic pull-through model customized to your pipeline
 Daily Activity Reporting
  • Daily tracking and reporting of new locks, expirations, cancellations, declines, new loan closings, new loan sales, trade allocations, and hedge trading activity
  • Comprehensive market risk analysis, shock reporting and accurate MTD P&L reporting
 Best Execution Analysis
  • Precise, detailed mark-to-market results based upon a client’s actual investor delivery alternatives, not generic market assumptions
  • Comprehensive analysis of every available execution for every loan, every day
  • Same-day best execution analysis optimizes trading decisions
  • Best execution analysis from ‘lock date’ through ‘allocation date to measure and manage ‘value at risk’ in the pipeline
  • Evaluation of servicing released versus servicing retained strategies
  • Best-efforts to mandatory/AOT/securities conversion expertise
Risk Management
  • Daily mark-to-market and attribution analysis of the entire position produces transparency for changes in profitability and risk
  • Creation of a hedge strategy designed to meet each client’s risk tolerance
  • Daily reporting of pipeline hedge performance in a variety of interest rate scenarios
  • Daily review and rebalancing of hedges to keep risk within client defined tolerance
  • Comprehensive market risk analysis enables the effective use of options strategies
  • Option-Adjusted Spread (OAS) price sensitivity enables effective hedging of ARMs
  • Comprehensive proxy management enables effective cross hedging of Jumbos
 Trade Management and Support
  • TBA and Whole Loan trade execution
  • MIAC is registered and audited by the SEC as a Registered Investment Advisor
  • Trade allocation, tracking and reporting
  • Assignment of Trade execution and reporting
 Accounting and Audit Support
  • FAS/GAAP compliant Daily, MTD, and YTD P&L reporting provides continuous monitoring of results
  • Detailed price breakdowns to facilitate reconciliation of loan sales
  • Expert support from senior professionals to assist in discussions with external auditors, warehouse lenders and regulators regarding pipeline risk management process.