AXY Wrap™ — An Innovative Risk Mitigation Product

AXY Wrap

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This article was originally published in Originate Report Magazine

Would you skydive without a parachute? Of course not. So, why should lending without a safety net be any different?

Axylyum Charter, a company aimed at disrupting the distressed mortgage-backed asset space through innovation, is positioning its product, AXY Wrap™, as the parachute necessary to accompany your lending skydiving journey. The product acts as an innovative safeguard for retail and wholesale lenders by eliminating the potential of default, a concept previously unheard of in the industry. This allows lenders to focus on what matters most – lending with complete confidence and without risk.

Originate Report recently had the pleasure of speaking with Bryce Malone, Chief Operating Officer at Axylyum Charter, to learn more about what sets them apart as an industry innovator. We were excited to take a dive into the idea behind AXY Wrap™ and how it has grown since it appeared on the market.

Axylyum Charter, fulfilling its goal of space disruption, took AXY Wrap™ to market on August 2, 2021. Despite its relatively recent public unveiling, the team has been perfecting the product for a significant period of time. “When you are building a product and company with the value proposition we offer, you have to be confident in the systems and processes established,” said Malone. “Due to our attention to this, the value AXY Wrap™ adds to the Private Lending and non-QM market is significant. Many of us have experienced down lending markets and economic crises, so we had the experience necessary to create the product.”

To break AXY Wrap™ down: AXY Wrap™ is a portfolio-wide engagement option for wholesale and retail lenders that allows for the repurchase of notes at 100% value in the event of default. This offers private lenders the incredible opportunity to increase their credit lines, foster relationships with their borrowers, and further expand their portfolio. Malone says, “It doesn’t matter to us if it is Fix and Flip, DSCR, non-QM, or small balance CRE. Axylyum Charter brings everything all under one roof.”

Normally, a lender would need to engage a special servicer and attorney in order to dispose of a non-performing asset. This can drag the process out for years to recover capital, as well as fees and expenses associated with litigation. “With AXY Wrap™,” Malone explains, “the lender can recover their capital within days of the Notice of Default with the AXY Wrap™ option. They can then continue to lend while AXY disposes of the asset through our numerous exit strategies.”

It can no longer be ignored that the increase of inflation will signal defaults on loans. This uncertainty in the market makes AXY Wrap™ more important than ever. On this note, Malone commented, “We want our Lender/Partners to succeed. If they do not have AXY Wrap™ in place, NPLs will negatively impact their business and limit capital, which in turn limits revenue, impacts current buy/sell agreements, and could possibly drive them out of business. We have seen this in the past and want to play our role in preventing that from occurring in the future. Why wouldn’t a lender want to recover capital with no loan losses in an unpredictable market?”

Malone further opined, “A limited lending industry is not good for anyone—most specifically borrowers. The economic impact of reduced capacities, more stringent credit boxes, and other variables, will impact the entire economy—not just any one company or borrower.”

Capital Mortgage Services of Texas, one of America’s most well-respected companies in the lending space, recently secured over $500 million in default protection with AXY Wrap™. This allowed them to increase their lending facilities and nourish relationships with their borrowers, in turn positioning Axylyum as an industry leader in credit line expansion and default risk mitigation. CEO of Capital Mortgage Services of Texas, Royce C. Lewis III, commented that he was surprised such a revolutionary idea had not been previously developed. He noted, “The removal of default risk is a game-changer for the private lending industry.”

Axylyum Charter is situated to continue solidifying its dominating position in the private lending, non-qualified mortgage loan, and Debt Service Coverage Ratio space. With notches like Capital Mortgage Services of Texas on its belt, we can look forward to this company discovering additional innovative solutions to adapt to a constantly fluctuating market. Their ability to adapt and grow at a steady pace is what Malone is most proud of, noting that Axylyum has “not redesigned the original product but has adapted to the needs of our clients. Since the initial roll out of AXY Wrap™, we have developed four additional products, including one that is designed for Credit Unions. These are all tailored to fit the diversity of the market while still serving the need for capital recovery.”

When asked what makes Malone optimistic about Axylyum’s future, he was thrilled to say, “Agility and flexibility set us apart from many service providers. We are not only willing to change; we thrive on change. We understand that we may not fulfill all our clients’ requests, but we can assure every lender that we will listen and adapt to their needs if possible.”

It is no coincidence that Axylyum’s name can be etymologically traced to the Latin word auxiliator, meaning “helper.” Do what you do best – lend – by considering “AXY Wrapping” your portfolio to eliminate your risk of default, keep your borrower relationships, and equip your freefall with what’s most important – a parachute to help you land safely on the ground.

Axylyum Charter has been honored in notable publications such as The New York Real Estate Journal, National Mortgage News, Mortgage Banker Magazine and Globe Street. They are proud members of the American Association of Private Lenders and the National Private Lenders Association. For more information about AXY Wrap™, please visit

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