IMX Exchange has launched a national expansion of its on-line broker bidding network.
The San Damon, Calif., company, which has been in business since 1997, said at the Mortgage Bankers Association technology conference that it has secured relationships with 24 Utah mortgage brokers.
The new lenders-including Allied Mortgage Capital Corp., Security National Mortgage Co., and BNC Mortgage Inc.-bring IMX Exchange's membership to more than 60 lenders and 650 brokerages. The roughly 3,600 loan officers in the network have traded nearly $1.5 billion of mortgages using the system.
The exchange works as a bidding arena in which brokers can post a loan for lenders to bid on. Lenders can enter specifics on the types of loans they will accept.
There is no cost to consumers or the brokers on the system. Lenders pay a fee for every closed loan. About 80% of the loans that are bid on by lenders and accepted by brokers actually close, the company said.
"Everything on the Internet scares new entrants," said John Hummer, IMX Exchange president and chief executive officer. "Now larger lenders should view us as another channel, not an infringement on existing relationships with wholesalers."
Lauri Beck, IMX director of broker relations, said brokers are "looking for ways to stay in the ball game" and the exchange will give them "an efficiency they do not have today."
"Brokers are aware that retail, direct-to-consumer sites are trying to disenfranchise them," Ms. Beck said. "It is very difficult for loan officers to keep the market straight with all the mergers and closings-big and small-across the country. The exchange lets brokers see who is the price leader at that particular time."
Ms. Beck said IMX is planning an aggressive national rollout; its next targets are Oregon, Washington, Colorado, and Nevada.
Mr. Hummer said a third phase will take IMX into Texas, Illinois, Florida, New York, and Virginia.
"By the end of the summer, our goal is to cover at least 50% of the national mortgage market," Ms. Beck said.
IMX is seeking alliances with mortgage insurance companies, underwriters, appraisers, and title and flood insurance providers, she said.
