Lehman Brothers to use LT2K underwriting engine for MBS trading

Lehman Brothers to use LT2K underwriting engine for MBS trading

Lehman Brothers is to implement Texas-based ARC Systems' automated underwriting engine, LT2k in its mortgage securitisation business. The system will enable the investment bank's whole loan trading desks in mortgage-backed securities trading to purchase mortgage loans based on a consistent set of quality/risk controlled guidelines.

Arc Systems claims Lehman is the first major Wall Street firm to endeavor to replace a manually arduous process with automation, paving the way for a potential 20 per cent annual increase in the volume of acquisitions.

"LT2k decisioning technology can shorten the time for securitisation of loan pools, reduce risk and enhance profits for lenders and investors alike," says Ed Jones, president and CEO of ARC Systems.

Comments: (0)

Get your copy of the OneSpan eBook - How to minimise the risk of Social Engineering attacks in Banki
DocuSign - 4 best practices for banking CIOs to digitally streamline operations. Get the guide

Trending Stories