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ICE Mortgage TechnologyTM, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, announced the results of a recent, independent return on investment (ROI) study that shows Encompass® and Encompass TPO Connect® deliver quantifiable results and value to correspondent and wholesale lenders who acquire third party originated loans using ICE Mortgage Technology solutions. Built on the ICE Mortgage Technology™ Platform, Encompass TPO Connect is a fully configurable web-based portal that allows wholesale and correspondent lenders to easily collaborate with their third-party originators (TPOs). Encompass, coupled with Encompass TPO Connect, demonstrates the efficiency and ease customers experience in acquiring and managing loans from correspondent lenders and wholesale brokers for faster results, maximum quality, compliance, and profitability on every loan.
“In both the correspondent and wholesale space, each individual in the ecosystem has historically exchanged documentation and information in a manual and analog environment - often requiring duplicative tasks, aggregating information from several sources and then manually reviewing loan files for accuracy and completion,” said Parvesh Sahi, Senior Vice President, Business and Client Development at ICE Mortgage Technology. “The ROI study proves Encompass and Encompass TPO Connect are a catalyst for correspondent and wholesale digitization by effectively demonstrating an ability to deliver significant ROI speed and scale while maintaining the quality to reduce risk and error.”
The ROI study shows how effectively ICE Mortgage Technology solutions enable correspondent and wholesale lenders to reduce cost, improve efficiency and scalability, and speed up funding - resulting in a 28% increase in operational leverage.
According to the study, correspondent lenders recognized a 10.8X annual return, citing automating purchase review, document management, package receipt and sync, and compliance reviews as leading time savers. Wholesale lenders experienced gains in broker/client management, data validation, and loan acquisition resulting in 209 minutes saved per loan plus two-day faster funding cycles. The results vary by segment, with both correspondent and wholesale lenders reducing their average loan costs by at least $575 per loan.
“As lenders prepare for shifts in the market, maximizing customer experience, scalability and profitability is key,” said Jordan Brown, CEO of MarketWise Advisors, LLC. who conducted the independent study. “The value is in knowing what areas of our business are the most time-consuming and costly and where we can improve margins and speed. This study breaks down where lenders are specifically gaining efficiencies and have opportunities for growth.”
The study is just a starting point and demonstrates the significant benefits of Encompass and Encompass TPO Connect as an easy to implement, turnkey solution. For those lenders implementing additional customization through APIs, the results are even more compelling. ICE Mortgage Technology and MarketWise Advisors, LLC. shared these findings in recent webinars with correspondent and wholesale lenders.
ICE Mortgage Technology combines technology, data and expertise to help automate the mortgage process, from customer engagement through loan registration, and every step and task in between. ICE Mortgage Technology is the leading cloud-based loan origination platform provider for the mortgage industry, with solutions that enable lenders to originate more loans, lower origination costs, and reduce the time to close, all while ensuring high levels of compliance, quality and efficiency. Visit icemortgagetechnology.com or call (877) 355-4362 to learn more.
