PLEASANTON, Calif. – Feb. 2, 2023 – Affordable housing is scarce, and a tough mortgage market isn’t helping. But there is another barrier – many low and moderate-income borrowers don’t know that they qualify for government-backed home loan programs. They don’t think they can afford homes when in fact, they can.
That’s because lenders are hard pressed to match borrowers with affordable loan programs such as Freddie Mac’s Home Possible® and Fannie Mae’s HomeReady®. Many loan officers lack the knowledge or tools to easily identify eligible borrowers, and as a result, available funds can go unclaimed.
But now a solution is on the way, in the form of data and analytics that can help lenders identify qualified buyers in their systems and match those borrowers to funds that can help them become homeowners. ICE Mortgage Technology®, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced the limited availability release of ICE Mortgage Technology® Affordable Lending Analytics. The new solution identifies loans in a lender’s pipeline that are potentially eligible for Home Possible and HomeReady.
“At ICE Mortgage Technology, we are committed to making the mortgage financing process more accessible and effective for both lenders and borrowers,” said Joe Tyrrell, president of ICE Mortgage Technology. “Affordable Lending Analytics will make it easier for lenders to close Home Possible and HomeReady loans by identifying eligible applicants – low and moderate-income borrowers and those from underserved areas. Lenders will close more loans and more Americans will be able to realize the dream of homeownership.”
Affordable Lending Analytics examines loan applications daily, searching a lender’s Encompass® application data for the following criteria: the application must have a TRID application date, the loan must not be locked in a loan program, and the borrowers total annual qualifying income must be less than or equal to 80% of the Area Median Income (AMI) of the subject property's location. A daily file is then generated and delivered to the individual lender, indicating which of its applicants are potentially eligible for Home Possible or HomeReady loan programs.
Affordable Lending Analytics is currently being piloted by several customers as part of a limited availability release.
“It has been a significant problem that Americans who could benefit from affordable financing through programs like Home Possible aren’t aware of their eligibility,” said Kevin Kauffman, Vice President Freddie Mac Single-Family Client Engagement. “Thanks to this partnership with ICE Mortgage Technology, we can help lenders expand loan access for their borrowers who need it most.”
“Solutions like Affordable Lending Analytics can increase visibility for HomeReady and other affordable lending programs and help overcome the barriers to homeownership in underserved communities,” said Fannie Mae’s Steve Pawlowski, Senior Vice President of Single-Family Products and Solutions.
To learn more about Affordable Lending Analytics, visit icemortgagetechnology.com/explore/affordable-lending-analytics.
About ICE Mortgage Technology
ICE Mortgage Technology® is part of ICE (NYSE: ICE), a global data, technology and market infrastructure company that designs, builds and operates digital networks to connect people to opportunity. Backed by ICE’s global resources, we offer a truly differentiated digital platform that provides straight-through processing for a more comprehensive end-to-end workflow than any other provider in the market. We reach almost every mortgage in the U.S. by combining the native automation of Encompass® with the e-collaboration and e-recording capabilities of Simplifile®, along with the national electronic registry for nearly 90% of the U.S. mortgage market in MERS®. Ultimately, our technology enables people across the industry to focus on personal connections when they need it most, and support borrowers for a better journey of homeownership. Visit icemortgagetechnology.com to learn more. ICE Mortgage Technology combines technology, data and expertise to help automate the mortgage process, from consumer 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.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
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Source: Intercontinental Exchange