Hedging Pipelines, Servicing and Whole Loan Portfolios with Compass

Lenders, Investors and Servicers need partners who have the depth of knowledge, flexibility and technology that can scale alongside them. Compass provides hedging services for pipeline, servicing and whole-loan portfolios and works with clients on three different levels with the ability to migrate between these relationships, as clients needs change:   

• Outsourced Hedge Advisory Services – Compass maintains its valuation and risk management model and executes all trades on a client’s behalf.
• Hosted Valuation and Risk Management Software (ASP Model) – Compass maintains its valuation and risk management models on behalf of the client while the client executes their own trades.
• Software Licensing – Compass licenses its valuation and risk management software, CompassPoint™ to Clients who execute their own trades and Compass and/or Client maintain CompassPoint™. CompassPoint™ may be hosted by Compass or hosted/installed at Client site.

The combination of licensing analytics and providing those analytics and hedge execution on an outsourced basis has allowed Compass to stay on top of current market conventions and valuation and risk management needs as a direct participant. This daily direct experience of valuing and hedging mortgage collateral, combined with input from larger licensing clients provides Compass with comprehensive feedback which Compass can translate into more relevant, intuitive and efficient analytics.