Two Harbors to Use ICE’s Encompass Digital Mortgage Platform in Servicing Retention Strategy via Direct-to-Consumer Lending Channel

Rhea-AI Summary

Intercontinental Exchange (NYSE: ICE) announced that Two Harbors Investment Corp. (NYSE: TWO) has chosen ICE's Encompass digital mortgage platform to support their new direct-to-consumer recapture originations channel. This decision is part of Two Harbors' strategy to retain servicing customers when interest rates drop and borrowers refinance. Two Harbors, now the eighth largest servicer of conventional loans in the U.S. after acquiring RoundPoint Mortgage Servicing in 2023, selected Encompass for its configurability and rapid implementation.

Bill Greenberg, Two Harbors' President and CEO, highlighted the platform's efficiency, stating they were able to offer loans to RoundPoint customers within months of choosing Encompass. The partnership aims to leverage ICE's integrated technology ecosystem for enhanced capabilities and customer benefits.

Positive

• Two Harbors selected ICE's Encompass platform for their new direct-to-consumer lending channel
• Rapid implementation allowed Two Harbors to offer loans within months of choosing Encompass
• Partnership aims to leverage ICE's integrated technology ecosystem for enhanced capabilities

Negative

• None.

Insights

Financial Analyst

Two Harbors' decision to use ICE's Encompass platform for their new direct-to-consumer lending channel is a strategic move with potential long-term benefits. As the 8th largest servicer of conventional loans, this expansion into originations could help retain customers and maintain servicing revenue when interest rates drop and refinancing increases.

The quick implementation of Encompass (within months) suggests operational efficiency, which could lead to cost savings and faster market entry. However, entering the competitive origination market may require significant investment and could impact short-term profitability. Investors should monitor the cost-benefit ratio of this expansion and its impact on Two Harbors' financial performance in upcoming quarters.

Tech Expert

ICE's Encompass platform offers Two Harbors a comprehensive digital mortgage solution, which is important in today's tech-driven lending landscape. The platform's configurability and integration capabilities within ICE's ecosystem could provide Two Harbors with a competitive edge in terms of operational efficiency and customer experience.

The ability to originate, service, sell and purchase loans from a single system of record can significantly reduce errors, improve data consistency and streamline workflows. This technological advancement may lead to cost reductions and improved scalability for Two Harbors' lending operations, potentially enhancing their market position in the long run.

Encompass chosen for comprehensive capabilities, configurability, and rapid implementation

ATLANTA & NEW YORK--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that Two Harbors Investment Corp.(NYSE:TWO) (“Two Harbors”), an MSR + Agency RMBS real estate investment trust, has selected the Encompass^® digital mortgage platform to support their new direct-to-consumer recapture originations channel. Part of ICE’s end-to-end digital housing finance ecosystem, Encompass is the mortgage industry’s leading digital platform for lenders to originate, service, sell and purchase loans faster – all from a single system of record.

Since acquiring RoundPoint Mortgage Servicing LLC (“RoundPoint”) in 2023, Two Harbors has become the eighth largest servicer of conventional loans in the country. The decision to expand into mortgage loan originations is key to their strategy of retaining servicing customers when interest rates drop and borrowers begin to refinance their loans. After a thorough search, Two Harbors identified Encompass as their platform partner in their effort to build out a direct-to-consumer channel to streamline origination workflows and provide an exceptional borrower experience.

“The built-in configurability and smooth implementation process with ICE meant that we were able to begin offering loans to our customers at RoundPoint within several months of our decision to go with Encompass,” said Bill Greenberg, Two Harbors’ President and CEO. “We’re planning to continue to take advantage of the additional capabilities and greater efficiencies within the integrated ICE technology ecosystem. When we consider the scope of what we can achieve together, the possibilities are exciting and will be beneficial to our customers.”

Encompass is key to the ICE end-to-end mortgage technology ecosystem, which is digitizing the entire real estate and housing finance lifecycle to create a better experience for lenders, homeowners, and investors. ICE is committed to investing in new innovations that help companies drive operational efficiencies across their entire business with visibility and control.

“We’re proud that Two Harbors chose the Encompass digital lending platform as they strategically expand their mortgage offerings.” said Tim Bowler, President of ICE Mortgage Technology. “ICE’s technology will help them better meet the needs of borrowers in this continuously evolving market. Two Harbors has been able to quickly deliver for their customers – a testament to our ongoing commitment to innovation that both helps mortgage companies operate more efficiently and delivers a better experience to the American homeowner.”

About Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in mortgage servicing rights, residential mortgage-backed securities and other financial assets. Two Harbors is headquartered in St. Louis Park, Minn.

About RoundPoint Mortgage Servicing LLC

RoundPoint Mortgage Servicing LLC is a non-bank mortgage servicing and origination company founded in 2007. In 2023, RoundPoint was acquired by Two Harbors Investment Corp. (NYSE: TWO). RoundPoint has offices in Fort Mill, S.C. and Coppell, Texas.

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.

Category: Mortgage Technology

ICE-CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806682704/en/

ICE Media Contact

Mitch Cohen

mitch.cohen@ice.com

+1 704-890-8158

ICE Investor Contact:

Katia Gonzalez

katia.gonzalez@ice.com

+1 (678) 981-3882

Two Harbors Investment Corp. Investor and Media Contact:

Margaret Karr

Head of Investor Relations and Communications

Margaret.Karr@twoharborsinvestment.com

+1 (612) 453-4080

Source: Intercontinental Exchange

FAQ

Why did Two Harbors choose ICE's Encompass digital mortgage platform?

Two Harbors selected ICE's Encompass platform for its comprehensive capabilities, configurability, and rapid implementation to support their new direct-to-consumer recapture originations channel and retain servicing customers when interest rates drop.

How quickly was Two Harbors able to implement ICE's Encompass platform?

According to Two Harbors' CEO Bill Greenberg, they were able to begin offering loans to their customers at RoundPoint within several months of deciding to use Encompass, demonstrating the platform's efficient implementation process.

What is Two Harbors' position in the mortgage servicing industry after acquiring RoundPoint?

After acquiring RoundPoint Mortgage Servicing in 2023, Two Harbors became the eighth largest servicer of conventional loans in the United States.

How does ICE's Encompass platform fit into their broader technology ecosystem?

Encompass is a key component of ICE's end-to-end mortgage technology ecosystem, which aims to digitize the entire real estate and housing finance lifecycle for lenders, homeowners, and investors.