About MAXEX, The Mortgage Exchange

Revolutionizing the secondary mortgage market

A decades-old problem

MAXEX challenges what everyone has long accepted about the mortgage industry: that liquidity flows through a network of one-to-one relationships. That’s the way originators, banks and investors have operated for decades. This system forces companies to produce dozens of private contracts, pay tens of thousands of dollars in annual legal costs and go through multiple annual certifications. It’s archaic, inefficient and risky.

Born from crisis

Never was this system more exposed and exploited than the 2008 housing crash. Subprime loans, paired with the unchecked rise of private label mortgage-backed securities, spawned disastrous results. When home prices plummeted, foreclosures were rampant and massive Wall Street firms shuttered.

“We wanted to look at the root causes,” says MAXEX Co-Founder, Chairman and CEO Tom Pearce. “What were the real problems that caused the crash and was there a way to mitigate what happened?”

The solution: MAXEX

Launched in 2016, MAXEX’s digital exchange solves these challenges by providing a central clearinghouse for lenders, banks and investors to buy and sell loans using a standardized trading process. This makes the mortgage process more efficient, more transparent and less risky. And with the lessons learned from the financial crisis, the U.S. mortgage industry is welcoming the change. “It would have been really hard, pre-financial crisis, to get this done because everyone was making so much money with their own little private channels,” says Pearce. “It took a tsunami to hit for people to start realizing they didn’t want to be on the hook for that again.”

Rapidly scaling in the world's largest credit market

Lock trading volume

$ 0 B+

Mortgage originators

0 +

Premiere mortgage buyers

0 +

Securitizations

0 +

“MAXEX is a must-have for us heading into this purchase market. The constant access to multiple loan buyers and pricing allows us to be more strategic about our loan programs and make better decisions in a dynamic environment. They’re constantly adding new features and programs which keeps our name in front of borrowers. Having a partnership with MAXEX is also now a selling point for us when recruiting loan officers.”

“Even for a large lender, competition is fierce, and we look for every advantage we can get. By selling through the MAXEX platform, we are able to satisfy our loan officers with competitive products while also confidently taking care of our balance sheet through immediate access to liquidity for our pipeline. We can do both of these things without adding to the overhead cost due to multiple, additional legal contracts with new buyers.”

“MAXEX brings standardization to an otherwise fragmented sector of the residential mortgage market.”

“MAXEX levels the playing field for small and mid-sized community lenders like GMCC and enables us to consistently access optimal market liquidity that was previously only available to the largest industry players.”

“MAXEX is important for us because they give us secondary execution options we otherwise would not have. When we had a last-minute issue on a loan, MAXEX acted as our partner to find a solution. They stepped up and honored a commitment in a difficult market – which is not always an easy thing to find. It’s comforting to know we have them working on our behalf to help us succeed.”

“MAXEX’s multi-buyer exchange platform lets us serve a broader audience of borrowers especially the third-party originators such as brokers across the country confidently, knowing we’ll have access to liquidity for loans on a flow or bulk basis. That flexibility is especially crucial as we’ve worked through the last few months of extreme volatility. Having a partner like MAXEX supporting our business goals and helping us execute has been essential in this environment. And their service is beyond excellent.”

MAXEX is a crucial partner for banks, offering efficient access to products our customers need, while enabling access to hard-to-reach investors. Their service and standardized approach ensure a great customer experience and reliable buyer for our originations, delivering strong ROI.