New Intercontinental Exchange Inc. Indices Track Daily Mortgage Rates

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Capitalizing on its growing capabilities in mortgage technology, the original New York Stock Exchange company is making it easier to track daily mortgage rate fluctuations and focus on particular market segments with a new set of rate indices residential mortgages.

Intercontinental Exchange Inc. (ICE) pulls average interest rates and other statistics from anonymized loan applications that go through the ICE Mortgage Technology platform, which processes about half of all US mortgages.

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

Available for registered users of ICE indexing platform, ice US residential mortgage rate foreclosure index series understand dozens of sub-indices that allow users to segment the larger composite index by selecting one or more attributes, including:

  • Purpose of the loan (purchase, interest rate and term refinancing, cash-out refinancing)
  • Term (loan at 10, 15, 20 or 30 years)
  • Type (conventional, FHA, VA, USDA)
  • Status (compliant, jumbo)
  • Credit score strip
  • Loan to value ratio (less than or equal to 80%, or greater than 80%)

The creation of the rate indices is another way for Intercontinental Exchange to make the most of its growing mortgage technology segment, which the last quarterly report to investors, generated $ 695 million in revenue in the first half of 2021, compared to $ 102 million in the same period of 2020.

This is largely due to ICE $ 11.4 billion acquisition from Pleasanton, Calif., mortgage technology developer Ellie Mae in September 2020. Ellie Mae, along with previous acquisitions of ICE MERS and Simplifile, are now known collectively like ICE Mortgage Technology.

But ICE – originally founded 20 years ago as an energy market – continues to generate most of its revenue as an 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) in july 2020.

Unlike ICE indices, OBMMI primary mortgage indices are publicly available on the Optimal Blue website, and can also be integrated into websites or newsletters using a custom widget.

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