Social Responsibility | ESG Lending

Building a purpose-driven platform

Responsible lending, simplified

As the world’s largest credit market, the U.S. mortgage market is a prime avenue to implement Environmental, Social and Governance (ESG) standards to encourage responsible lending supporting underserved communities and green energy solutions. However, due to the archaic and inefficient way that mortgage loans are traded between financial institutions, this has been difficult to achieve at scale.

Conquering complexity

MAXEX changed the game by absorbing the complexity. Using our process, originators write to a single set of guidelines outlined by the investor and face one counterparty, MAXEX. This dramatically reduces overhead cost for lenders and gives them a simplified way to produce ESG-compliant loans.

“There is an enormous amount of investor interest in putting money to work to address a wide range of social issues, but few ways to do it effectively. With their exchange, MAXEX may have finally found a way to unleash all of this demand, sending private capital into corners of the market that desperately need it.”

JIM PARROTT
Urban Institute Fellow and Former White House Housing Policy Advisor

Leveling the playing field

By simplifying the process, MAXEX expands ESG-based lending options to smaller banks and credit unions that couldn’t previously afford the expensive operational costs. That means more homebuyers can access affordable loans to support green energy initiatives and more minority, women and veteran-owned lenders can better support underserved homebuyer communities.

“As a minority-owned mortgage lender actively selling loans on the MAXEX platform, our company and the homeowners we serve have already benefited greatly from MAXEX’s unique ESG lending programs. MAXEX levels the playing field for small and mid-sized community lenders like GMCC and enables us to consistently access optimal market liquidity that was previously only available to the largest industry players.”