In a press release, Incenter said it aims to streamline current trading and transfer processes to improve its clients’ financial performance. The platform was developed in tandem with e11tec and Watermark TPO, a division of Watermark Capital.
“The Incenter CRA Exchange Platform breaks new ground — redefining a complex and friction-filled process while strengthening our clients’ ability to invest in low-to-moderate-income borrowers and their communities,” Ralph Armenta, president of Incenter’s Lending-in-a-Box division, said in a statement.
Incenter said that trading these types of loans has historically been a “highly inefficient process” as buyers often spending days finding and securing loans that meet their credit and collateral requirements, which vary by community. And sellers often have a surplus of these loans but lack access to buyers who frequently pay a premium.
The exchange attempts to solve these problems by serving as a confidential and secure “matchmaker,” according to Incenter. After buyers include any credit overlays or metro-area-specific requirements, and sellers provide details on their loans, the platform connects potential partners, alerts them, establishes loan eligibility and lists current pricing.
Sellers can then identify premium CRA pay-up opportunities at or near the point of sale. Buyers and sellers control the servicing asset through this process, with both retained servicing and third-party servicing options available through the exchange.
Incenter’s platform handles additional tasks such as loan purchasing and delivery through Watermark TPO. These include purchase agreements, negotiations, loan risk approvals, loan and collateral delivery, due diligence, settlement and servicing transfers, as applicable.
