ICE, the company that recently acquired the New York Stock Exchange (NYSE), is making a bold move into the mortgage industry. Founder and CEO Jeffrey Sprecher is committing $11.9 billion to streamline the mortgage process and offer better deals to homeowners.
Despite the challenging state of the mortgage industry, with high rates and declining originations, Sprecher sees a massive opportunity for improvement. In an interview with Fortune, he stated that the financial services sector has a significant unrealized potential.
To kickstart this endeavor, ICE acquired Black Knight, a home loan servicing and data analytics firm, for $11.9 billion. This acquisition surpasses Sprecher’s previous purchase of the NYSE for $8.2 billion in 2013.
By integrating Black Knight into ICE, Sprecher aims to enhance the mortgage manufacturing process. Homeowners can expect AI-based estimates of their property’s current value and regular updates on the latest refinancing options, both government-backed and private.
Sprecher’s ultimate goal is to revolutionize the cumbersome and outdated home loan process by connecting legal experts, public notaries, and lenders. Currently, this process can take months and cost thousands of dollars.
In previous years, Sprecher acquired three segments of the origination-to-closing process. He started with Mortgage Electronic Registration Systems (MERS), a database that tracks home loan owners, servicers, and modifications. Another acquisition was Simplifile, a digital solution for keeping track of loans at county offices. Lastly, ICE entered the origination end of the market by purchasing Ellie Mae, a software provider that offers a paperless digital closing unit.
These acquisitions were combined into a comprehensive digital solution called ICE Mortgage Technology before the Black Knight deal. This system is open to third parties such as real estate attorneys, brokers, servicers, and notaries, encouraging industry-wide collaboration on the same automated platform.
Sprecher’s ambitious plan to improve the slow and costly mortgage process seems promising. With the necessary components in place, homeowners could soon benefit from a faster and more efficient experience.
Follow crowdfundingmagazine on Instagram: @crowdfundingmagazine_it