Residential mortgage loan exchange company MAXEX announced that it has raised $38 million in a new round of funding led by Moore Asset Backed Fund LP. And GreensLedge Capital Markets LLC was the sole placement agent. MAXEX is known for making the process of buying and selling residential mortgage loans more efficiently.
With this funding round, MAXEX will enhance its exchange operations and counterparts structure along with building out its end-to-end cloud-based platform, which facilitates the trading of residential mortgages between participants in the secondary mortgage market. MAXEX’s exchange brings transparency, automation, and a streamlined settlement process, which leads to a more open and less risky secondary market.
“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 MAXEX CEO and chairman Tom Pearce. “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.”
MAXEX’s previous round was a $35 million Series A from Ellis Capital, Fenway Summer Ventures and Bienville Ventures. This brings MAXEX’s total funding to over $73 million. Plus J.P. Morgan has been a strategic commercial partner since late 2017.
So far, MAXEX has facilitated more than $2.3 billion in loan trades between more than 80 approved sellers and buyers that range from banks and nonbank originators along with a number of active Wall Street dealers. MAXEX also contributed loans into 16 separate private MBS securitizations with plans for a broader public launch later this year.
MAXEX has more than 50 employees and the company plans to hire more employees to its senior level positions in technology, sales and marketing, and operations.