Freddie Mac and ICE Collaborate to Help Lenders Improve Loan Quality
20 March 2024 - 1:30AM
Freddie Mac (OTCQB: FMCC) and Intercontinental Exchange,
Inc. (NYSE:ICE), a leading global provider of technology and data,
today announced they’re working together to bring greater loan
quality to the mortgage origination process so lenders can
effectively serve more borrowers while reducing risk. The
collaboration will leverage both companies’ automation technologies
and solutions to help lenders quickly and efficiently underwrite
mortgage loans starting at the point of sale.
“We’re joining forces with ICE to combine our organizations’
unique strengths to help more lenders deliver higher quality
mortgages in this challenging market,” said Kevin Kauffman, Freddie
Mac Single-Family Senior Vice President of Seller Engagement. “Our
collaboration with ICE builds upon Freddie Mac’s commitment to
improve loan quality from origination through delivery so we can
help reduce defects, lower costs and bring greater efficiency to
the mortgage origination process.”
The announcement was made during the ICE Experience 2024
conference, an annual event that gathers together thousands of
leaders in the real estate and housing finance industries to
showcase the latest technologies driving the digital mortgage
market forward, from ICE as well as other industry
participants.
“ICE is on a mission to make the path to homeownership as fast,
transparent, accessible, and simple as possible,” said Tim Bowler,
President of ICE’s mortgage technology division. “Our innovations
are targeting core issues associated with the cost and turn times
of mortgage origination. We’re proud to collaborate with Freddie
Mac on the critical matter of improving loan quality to streamline
the housing finance market and help minimize related
repurchases.”
Over the last two years, Freddie Mac has announced automated
capabilities that allow lenders to use asset and employment data to
verify a borrower's assets, income and employment, as well as
consider cash flow and rent payment history in the risk
assessment.
Kauffman added, “As more lenders consider adopting digital tools
to mitigate risk and drive improvement in overall loan quality and
portfolio performance, this effort signifies the next level of
industry collaboration.”
Recent analysis shows that loans originated by lenders
leveraging certain Freddie Mac automated offerings are up to four
times less likely to produce defects than loans without these
technology offerings. Process automation is especially beneficial
for documenting income, both in the collection and assessment
process. That’s vitally important because income verification
issues account for nearly one-third of all purchase transaction
defects.
About Freddie MacFreddie Mac’s mission is to
make home possible for families across the nation. We promote
liquidity, stability, affordability and equity in the housing
market throughout all economic cycles. Since 1970, we have helped
tens of millions of families buy, rent or keep their home. Learn
More: Website | Consumers | Twitter | LinkedIn | Facebook |
Instagram | YouTube
About Intercontinental ExchangeIntercontinental
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.
MEDIA CONTACT: Chad
Wandler703-903-2446Chad_Wandler@FreddieMac.com
ICE MEDIA CONTACT: Mitch
Cohen704-890-8158Mitch.Cohen@bkfs.com
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