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TechnologySoftware

After the lock: bringing capital markets into origination

CapitalOS is being designed to connect locking, hedging, and loan sale to the same system where loans are originated.

Product
CapitalOS™
Type
Capital Markets
Status
Coming soon
Reading time
3 min read

Inside the Genius platform

For most borrowers, the mortgage process ends at closing. For the lender, another chapter is underway: managing interest-rate risk on locked loans and, in many cases, selling the loan to an investor. CapitalOS™, the capital markets product in the Genius platform, is designed to bring that work into the same system where loans originate, and it is listed as coming soon.

01The work that happens behind a rate lock

When a lender locks a rate for a borrower, it takes on the risk that market rates move before the loan is closed and sold. Managing that risk, tracking which loans are committed to which investors, and delivering closed loans is the work of secondary marketing, often called capital markets. At many lenders, that work runs in a separate system fed by exports from origination. Every handoff between those systems is a place where time, data, and value can slip.

02Secondary marketing as part of origination

CapitalOS is designed to make secondary marketing part of the origination pipeline rather than a separate desk downstream. The intent is that a loan, once locked, is already positioned, covered by the hedge, and routed toward its best buyer. Genius describes the path as priced, hedged, and sold, all within one pipeline. For lenders, the stated aim is direct investor execution, with no exports to a separate system and less value lost between steps.

03What a connected execution desk is built to show

The planned capabilities center on visibility and execution. Positions, hedge coverage, and pull-through, the share of locked loans expected to close, are designed to be visible across the pipeline in real time, with TBA and specified-pool hedges moving in step with locks. Investor bids are meant to be ranked so each loan can be routed to its best execution. Lenders would be able to execute on a mandatory or best-efforts basis from one desk, then package and deliver loans with commitment and delivery status tracked throughout.

04Where CapitalOS fits, and when

In the Genius platform, CapitalOS follows the CRM, point-of-sale, loan origination system, and product and pricing engine, and comes before LifecycleOS, the retention and servicing product. It is designed to connect the pipeline directly to institutional investors for live pricing and delivery. The four products ahead of it are scheduled to launch in Q1 2027, while CapitalOS is listed as coming soon and its timing has not been announced. For borrowers, this layer works largely out of view, behind the rate lock and the closing table.

What it does

Best-execution delivery

Investor bids are designed to be ranked so each loan can be routed to its strongest buyer.

Hedging and TBA

TBA and specified-pool positions are designed to manage pipeline rate risk in step with locks.

Position and pipeline management

Real-time positions, coverage ratios, and pull-through show where the pipeline stands at any moment.

Loan sale and delivery

Loans are packaged and delivered to investors, with commitments and delivery status tracked from end to end.

How it works

  1. 01

    Price and lock

    A loan is priced and locked in the same system where it is originated.

  2. 02

    Hedge and position

    The locked loan is reflected in pipeline positions and hedge coverage as it moves toward closing.

  3. 03

    Sell and deliver

    Investor bids are ranked, the best execution is selected, and the loan is packaged and delivered with its commitment tracked.

Where things stand.

CapitalOS™ is part of the Genius platform. It is still in development. Capabilities, availability, and timing described here may change. This article is for information only and is not a loan offer.

Part of the Genius platform

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