New indexes from Intercontinental Exchange Inc. track daily mortgage rates

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The company behind the New York Stock Exchange leverages its growing skills in mortgage technology and makes it easier to track daily mortgage rate fluctuations and sharpen specific market segments with a new suite of residential mortgage rate indexes.

Intercontinental Exchange Inc. (ICE) pulls average interest rates and other statistics from anonymized loan applications submitted through the ICE mortgage technology Platform that handles roughly half of all US mortgages.

“Observable loan applications provide a wealth of information and can be important benchmarks for lenders, banks and participants in the mortgage-backed securities market,” said ICE Managing Director Lynn Martin in a opinion. “By using a data-driven approach and leveraging the unique strengths of ICE’s mortgage technology and data services teams, we are bringing a tremendous amount of new data to the market that can both provide clients with strategic information and help them manage risk.”

Available to registered users of the ICE index platform, the ice US Residential Mortgage Blocking Index Series contains Dozens of sub-indices which allow users to segment the broader composite index by choosing on one or more attributes, including:

  • Loan purpose (purchase, interest and timely refinancing, cash-out refinancing)
  • Term (10, 15, 20 or 30 year loan)
  • Type (conventional, FHA, VA, USDA)
  • Status (compliant, jumbo)
  • Credit score tape
  • Lending ratio (less than or equal to 80 percent or more than 80 percent)

Building interest rate indexes is another way for Intercontinental Exchange to make the most of the growing segment of mortgage technology, which the company claims latest quarterly report to investors, generated revenue of $ 695 million in the first half of 2021, compared to $ 102 million in the same period in 2020.

This is mainly due to ICE’s $ 11.4 billion acquisition of Pleasanton, Calif., mortgage technology developer Ellie Mae in September 2020. Ellie Mae is along with previous ICE acquisitions MERS and Simplifile now known collectively than ICE mortgage technology.

But ICE – originally founded 20 years ago as an energy marketplace – continues to generate most of its revenue as the operator of 12 regulated exchanges around the world, including the New York Stock Exchange.

ICE rival Black Knight has made its Optimal Blue Mortgage Market Indices (OBMMI) competition available on the Nasdaq Global index data service (GIDS) platform in July 2020.

Unlike the ICE indices, the OBMMI primary mortgage indices are open to the public on the Optimal Blue website, and can also be used with a. be embedded in websites or newsletters personalized widget.

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