ICE Enhances Mortgage Prepayment Model With Data From ICE Mortgage Technology
Leverages transaction-based residential mortgage rates from ICE Mortgage Technology
Intercontinental Exchange, Inc. a leading global provider of data, technology and market infrastructure, announced it has enhanced its mortgage prepayment model with daily residential mortgage rates from ICE Mortgage Technology. This represents the first joint product that leverages anonymized transaction data from ICE Mortgage Technology and ICE’s expertise in identifying and creating new alternative data offerings.
The mortgage rates are part of a new data service called ICE Locked Rate Feed, which provides a daily, anonymized feed of residential mortgage rates across 45 different loan programs from mortgages that were closed on ICE Mortgage Technology’s loan origination system (LOS), Encompass, one of the largest digital lending platforms in the U.S. residential mortgage market. The ICE Locked Rate Feed has been integrated into the ICE Data Analytics mortgage prepayment model.
“By leveraging this new dataset from ICE Mortgage Technology, we’re able to upgrade from a process that estimates mortgage rates using a weekly survey to daily transaction-based interest rates, with much more transparency into the mortgage market,” said Lynn Martin, President of Fixed Income and Data Services at ICE. “This is an important new offering for both the fixed income and lending market, and it builds on the deep experience ICE has for bringing new products and technology to market.”
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“This solution highlights the impact that ICE can bring to our customers by combining our data and mortgage backed security expertise with our comprehensive mortgage processing network to deliver new innovations,” said Joe Tyrrell, President, ICE Mortgage Technology. “By leveraging our real-time data, ICE Data Services is providing fixed income investors and market participants access to high-quality tools and analytics that connect disparate processes. ICE Mortgage Technology’s solutions continue to attract new customers and our deep expertise as the largest electronic network of mortgage stakeholders allows us to capture and capitalize on those opportunities.”
Prepayment models are a critical component for fixed income investors in determining the price sensitivity and cash flow risks of mortgage backed securities — both for mortgage pools and collateralized mortgage obligations (CMOs). For lenders, the ICE Locked Rate Feed provides a reliable, up-to-date aggregated view into competitive lending rates, allowing them to benchmark their own products to others in the market.
ICE is a leading provider of mortgage-backed securities price evaluations, publishing more than 200,000 U.S. agency and non-agency collateralized mortgage obligations. ICE calculates and publishes daily evaluations across multiple geographies and currencies for approximately 3 million financial instruments. ICE publishes reference data on more than 35 million financial instruments that helps customers enhance risk management, maintain compliance and maximize operational efficiencies. For more information on ICE Data Analytics
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