Freddie Mac and ICE Collaboration Offers Lenders Greater Efficiencies When Originating Loans
Freddie Mac (OTCQB: FMCC) and Intercontinental Exchange (NYSE:ICE) announced technological enhancements to streamline mortgage loan underwriting processes. The collaboration integrates Freddie Mac's Loan Product Advisor® (LPA®) with ICE's Encompass® digital lending platform, offering lenders improved efficiency in loan origination.
The enhanced Encompass Underwriting Center provides access to LPA ChoiceSM feedback messages, employment warranty relief eligibility, and automated collateral evaluation options. The system delivers detailed information about debt-to-income ratios, loan-to-value ratios, and reserves.
According to Freddie Mac's analysis, loans originated using their automated offerings are up to four times less likely to have defects compared to loans without this technology. This automation is particularly valuable for income verification, as income-related issues represent nearly one-third of all purchase transaction defects.
Freddie Mac (OTCQB: FMCC) e Intercontinental Exchange (NYSE:ICE) hanno annunciato miglioramenti tecnologici per semplificare i processi di sottoscrizione dei prestiti ipotecari. La collaborazione integra il Loan Product Advisor® (LPA®) di Freddie Mac con la piattaforma di prestiti digitali Encompass® di ICE, offrendo ai finanziatori una maggiore efficienza nell'origine dei prestiti.
Il centro di sottoscrizione Encompass migliorato fornisce accesso ai messaggi di feedback LPA ChoiceSM, all'idoneità per il rilascio della garanzia di impiego e alle opzioni di valutazione automatica dei beni. Il sistema offre informazioni dettagliate sui rapporti tra debito e reddito, rapporto prestito-valore e riserve.
Secondo l'analisi di Freddie Mac, i prestiti originati utilizzando le loro offerte automatiche hanno fino a quattro volte meno probabilità di presentare difetti rispetto ai prestiti senza questa tecnologia. Questa automazione è particolarmente preziosa per la verifica del reddito, poiché i problemi relativi al reddito rappresentano quasi un terzo di tutti i difetti nelle transazioni di acquisto.
Freddie Mac (OTCQB: FMCC) e Intercontinental Exchange (NYSE:ICE) anunciaron mejoras tecnológicas para simplificar los procesos de suscripción de préstamos hipotecarios. La colaboración integra el Loan Product Advisor® (LPA®) de Freddie Mac con la plataforma de préstamos digitales Encompass® de ICE, ofreciendo a los prestamistas una mayor eficiencia en la originación de préstamos.
El mejorado Centro de Suscripción Encompass proporciona acceso a mensajes de retroalimentación LPA ChoiceSM, elegibilidad para alivio de garantía de empleo y opciones de evaluación de colateral automatizadas. El sistema ofrece información detallada sobre las relaciones entre deuda e ingreso, la relación préstamo-valor y las reservas.
Según el análisis de Freddie Mac, los préstamos originados utilizando sus ofertas automatizadas tienen hasta cuatro veces menos probabilidades de tener defectos en comparación con los préstamos sin esta tecnología. Esta automatización es especialmente valiosa para la verificación de ingresos, ya que los problemas relacionados con los ingresos representan casi un tercio de todos los defectos en las transacciones de compra.
프레디 맥 (OTCQB: FMCC)과 인터콘티넨탈 익스체인지 (NYSE:ICE)는 주택 담보 대출 심사 프로세스를 간소화하기 위한 기술 개선을 발표했습니다. 이 협력은 프레디 맥의 대출 제품 자문(LPA®)과 ICE의 디지털 대출 플랫폼인 엔컴패스(Encompass®)를 통합하여 대출 기관에게 대출 원활화에서 더 나은 효율성을 제공합니다.
개선된 엔컴패스 심사 센터는 LPA ChoiceSM 피드백 메시지, 고용 보증 면제Eligibility 및 자동 담보 평가 옵션에 대한 접근을 제공합니다. 시스템은 부채 대 소득 비율, 대출 대 자산 비율 및 예비금을 포함한 자세한 정보를 제공합니다.
프레디 맥의 분석에 따르면, 자동화 솔루션을 사용하여 원천징수된 대출은 이 기술이 없는 대출보다 defect가 발생할 확률이 최대 4배 낮다고 합니다. 이 자동화는 소득 검증에 특히 중요한데, 소득 관련 문제는 모든 구매 거래 결함의 거의 3분의 1을 차지하기 때문입니다.
Freddie Mac (OTCQB: FMCC) et Intercontinental Exchange (NYSE:ICE) ont annoncé des améliorations technologiques pour simplifier les processus de souscription de prêts hypothécaires. La collaboration intègre le Loan Product Advisor® (LPA®) de Freddie Mac avec la plateforme de prêts numériques Encompass® d'ICE, offrant aux prêteurs une meilleure efficacité dans l'octroi de prêts.
Le Centre de souscription Encompass amélioré permet d'accéder aux messages de retour d'information LPA ChoiceSM, à l'éligibilité à la garantie de décharge d'emploi et aux options d'évaluation des garanties automatisées. Le système fournit des informations détaillées sur les ratios d'endettement, les ratios prêt-valeur et les réserves.
Selon l'analyse de Freddie Mac, les prêts originais utilisant leurs offres automatisées ont jusqu'à quatre fois moins de risques de présenter des défauts par rapport aux prêts sans cette technologie. Cette automatisation est particulièrement précieuse pour la vérification des revenus, les problèmes liés aux revenus représentant près d'un tiers de tous les défauts de transaction d'achat.
Freddie Mac (OTCQB: FMCC) und Intercontinental Exchange (NYSE:ICE) haben technologische Verbesserungen angekündigt, um die Prozesse der Kreditbewertung bei Hypothekendarlehen zu straffen. Die Zusammenarbeit integriert Freddie Macs Loan Product Advisor® (LPA®) mit der digitalen Kreditplattform Encompass® von ICE, was den Kreditgebern eine verbesserte Effizienz bei der Kreditvergabe ermöglicht.
Das verbesserte Encompass Underwriting Center bietet Zugang zu LPA ChoiceSM Feedback-Nachrichten, der Berechtigung zur Entlastung von Beschäftigungsverpflichtungen und automatisierten Bewertungsoptionen für Sicherheiten. Das System liefert detaillierte Informationen über Schulden-Einkommen-Verhältnisse, Kredit-Wert-Verhältnisse und Rücklagen.
Laut der Analyse von Freddie Mac sind Kredite, die mit ihren automatisierten Angeboten vergeben werden, bis zu viermal weniger anfällig für Mängel als Kredite ohne diese Technologie. Diese Automatisierung ist besonders wertvoll für die Einkommensüberprüfung, da einkommensbezogene Probleme fast ein Drittel aller Mängel bei Kaufgeschäften darstellen.
- Integration of automated systems potentially reduces loan processing time and costs
- Loans using automated offerings show 4x lower defect rates
- Enhanced system helps convert more 'Caution' messages to 'Accept' status
- Automation addresses income verification issues, which account for 33% of purchase transaction defects
- None.
MCLEAN, Va., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) and Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced enhancements that leverage both companies’ automation technologies to enable lenders to more quickly and efficiently underwrite mortgage loans starting at the point of sale.
“Together, Freddie Mac and ICE have leveraged our organizations’ unique technological strengths to help lenders originate more mortgages in this challenging market,” said Freddie Mac’s Kevin Kauffman, Senior Vice President, Seller Engagement, Single-Family Acquisitions. “The result is empowering lenders to originate more loans eligible for sale to Freddie Mac without changing their workflow. We’re also arming lenders with more detailed information around purchase requirements as well as cost-saving options for first-time homebuyers.”
New enhancements give lenders heightened integrated access to the latest offerings in Loan Product Advisor® (LPA®), Freddie Mac’s automating underwriting system, from within Encompass®, ICE’s widely used digital mortgage lending platform. The Encompass Underwriting Center’s dual AUS feature provides:
- Access to Freddie Mac’s LPA ChoiceSM feedback messages, which offer actionable responses to help lenders make faster, informed decisions and turn more Cautions messages to Accepts. Feedback messages include information about debt-to-income ratios, loan-to-value ratios and reserves.
- Feedback on whether a given loan is eligible for employment representation and warranty relief.
- Access to critical LPA messages highlighting Freddie Mac’s automated collateral evaluation (ACE) and ACE+ PDR appraisal alternatives.
“ICE is actively digitizing mortgage lending; integrating systems, solutions and processes to provide maximum value for lenders and households alike,” said Tim Bowler, President of ICE’s mortgage technology division. “By virtue of this collaboration, Encompass users can now seamlessly access Freddie Mac’s latest LPA offerings as part of their existing workflows. As always, the goal is to increase efficiency, lower costs and help lenders put more qualified borrowers into homes they can afford.”
Freddie Mac’s LPA includes capabilities that help lenders automate the assessment of borrower assets, income and employment while identifying the existence of positive cash flow or consistent rent payment history that could positively impact the risk assessment.
A recent analysis shows that loans originated by lenders leveraging certain Freddie Mac automated offerings are up to four times less likely to produce defects than loans without this technology. Process automation is especially beneficial for documenting income, both in collection and assessment, given that income verification issues account for nearly one-third of all purchase transaction defects.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn more: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.
MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
ICE MEDIA CONTACT: Mitch Cohen
704-890-8158
Mitch.Cohen@ice.com
FAQ
What are the key benefits of Freddie Mac (FMCC) and ICE's new collaboration for lenders?
How much do Freddie Mac's (FMCC) automated offerings reduce loan defects?
What specific features does the new Freddie Mac (FMCC) and ICE integration offer?
What percentage of purchase transaction defects does income verification issues account for in Freddie Mac (FMCC) loans?
