Magazine article American Banker

Wall Street Watch: Web Loan Hub IMX Exchange Eyes $57M IPO

Magazine article American Banker

Wall Street Watch: Web Loan Hub IMX Exchange Eyes $57M IPO

Article excerpt

IMX Exchange Inc. hopes to raise $57.5 million in an initial public offering of common stock intended to help it soup up its online wholesale mortgage marketplace.

The San Ramon, Calif.-based company has not set a date for the IPO, which is being underwritten by Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., SG Cowen Securities Corp., and E Offering Corp.

The IPO plan was announced last week. On Monday, IMX identified the companies that invested in the five-year-old outfit through a $15.7 million sale of preferred stock that brought its financing to $55 million. They are the Dutch banking giant ABN Amro, Hummer Winblad Venture Partners, Mohr Davidow Ventures, Technology Crossover Ventures, Intel Corp., Lehman Brothers, Citigroup Inc., BancBoston Capital Inc., and Presidio Venture Partners.

IMX is one of a new breed of Internet companies seeking to capitalize on the lucrative market for broker-originated loans. The company lets brokers, who traditionally deal with only a few lenders, find more loan options and better prices by connecting with more lenders.

The mechanism IMX uses is an online "exchange" through which a large network of lenders can bid on individual loans listed by mortgage brokers. Theoretically, borrowers benefit by getting loans at the best possible interest rate, while lenders and brokers stand to gain through a streamlining of the mortgage origination process and more liquidity. IMX charges lenders lower fees than a wholesale account representative would normally charge. …

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