HALCYON ANNOUNCES FIRST OF ITS KIND RIA SERVICES INTEGRATION WITH ENCOMPASS PARTNER CONNECT: A SOLUTION TO DIVERSIFY LENDER REVENUE IN A CHALLENGING ENVIRONMENT
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Insights
The integration of Halcyon's RIA Offering into the Encompass Partner Connect platform presents a strategic move in the mortgage technology sector. In the context of a high-interest rate environment, the refinance market has contracted significantly, prompting lenders to seek alternative revenue streams. Halcyon's initiative could potentially lead to an increase in customer retention for lenders by providing value-added services that extend beyond traditional lending. This service diversification is particularly important as it aids lenders in building more resilient business models, less susceptible to market volatility.
From a financial perspective, introducing financial advisory services at the point of a home purchase transaction could enhance the lifetime value of a customer to the lender. By ensuring borrowers are making informed financial decisions, lenders can mitigate the risk of loan defaults. This risk mitigation strategy is crucial, as it directly impacts the lender's loan portfolio quality and, by extension, their financial stability and reputation in the market.
Halcyon's collaboration with ICE Mortgage Technology underscores a growing trend in the financial services industry towards leveraging technology to provide comprehensive client solutions. This holistic approach to financial health is in line with consumer expectations for more personalized and accessible financial advice. As this service is the first of its kind on the Encompass platform, it positions Halcyon as a pioneer, potentially capturing early market share in this niche segment.
Long-term implications for the industry could include a shift towards more integrated financial services ecosystems, where technology platforms like Encompass become one-stop shops for a range of financial needs. This could drive competitive dynamics, compelling other market participants to innovate similarly or risk being left behind. The move also reflects a broader industry trend towards fintech solutions that streamline complex processes and enhance customer engagement.
Halcyon's proprietary technology, which handles tracking and compliance for lenders, addresses a critical aspect of financial advisory services: regulatory adherence. The financial industry is heavily regulated and the introduction of advisory services through a digital platform must navigate a complex web of regulations. By automating compliance, Halcyon not only simplifies the process for lenders but also reduces the risk of regulatory infractions that could lead to penalties or reputational damage.
Furthermore, the mention of 'no cost' advisory services to borrowers raises questions about the business model and compensation structure, which must be transparent and compliant with financial regulations. It is essential for Halcyon to ensure that their RIA Offering aligns with fiduciary standards and other regulatory requirements to maintain trust and avoid conflicts of interest.
In the current market where the refi boom has dried up and interest rates are sky high, most home purchases are being driven by life events that come with other financial considerations. Halcyon is helping diversify revenue and strengthen borrower-lender relationships with their new RIA Offering. Through natural conversation, loan officers learn what is influencing a new home purchase and have an opportunity to introduce a client to an RIA for financial health advice with a few clicks of a button in Encompass.
Encouraging financial health is a win-win for borrowers and lenders. Borrowers receive advice on things such as college savings plans if their household is expanding, additional life insurance, or what to do with that old 401K, for no cost. The lender has comfort that the borrower is making sound decisions that can help protect future default and it provides a way to diversify income.
"Halcyon is excited to help borrowers prepare for their future, while helping lenders diversify their offerings, and revenue," says Kirk Donaldson, CEO of Halcyon. "We are the first to provide this service through Encompass Partner Connect® and lenders will immediately see the value."
Through Halcyon's proprietary technology, all the tracking, compliance and details are taken care of for the lender. A home purchase is the largest investment most will make in their lifetime; introducing financial advice to a new homeowner early on can help ensure a sound future.
About ICE Mortgage Technology
ICE Mortgage Technology® combines data, interconnected solutions, and expertise to digitize and automate processes across the entire housing finance continuum – from consumer engagement at the front end of real estate, mortgage or refinance transactions; through origination, underwriting, and production; on to loan registration and the long-term servicing relationship with the consumer. We touch nearly every mortgage in the
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
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, 2022, as filed with the SEC on February 2, 2023.
About Halcyon
Halcyon's assists in deepening lenders' overall relationship with their borrowers to offer products and services that are specific to each individual, creating additional revenue streams beyond the initial loan closing. They have multiple products that ensure you will know more about your borrower every step of the way – IRS income & tax transcripts, digitally prepared tax returns and a Registered Investment Advisory platform to offer full financial services to your borrowers Visit www.halcyonsw.com.
Press Contact:
Halcyon Still Water
Media@halcyonsw.com
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