ICE Mortgage Technology’s Encompass to offer investment advisory advice for clients

ICE Mortgage Technology — part of Intercontinental Exchange (ICE) – will be offering lenders access to investment advisory advice in its Encompass loan origination system (LOS) through a partnership with Halcyon, a tech firm specializing in advanced data integration.

“In the current market where the refi boom has dried up and interest rates are sky high, most home purchases are being driven by life events that come with other financial considerations. Halcyon is helping diversify revenue and strengthen borrower-lender relationships with their new registered investment advisor (RIA) Offering,” Halcyon said in a news release.

Through the partnership, loan officers can introduce their clients to an RIA within Encompass. 

Borrowers will receive financial advice including – college savings plans if their household is expanding, additional life insurance and 401k at no cost. Halcyon’s proprietary technology will be responsible for the tracking and compliance for the lender.

Halcyon is the first to provide the service through Encompass and lenders will immediately see the value, said Kirk Donaldson, CEO of Halcyon. 

“The lender has comfort that the borrower is making sound decisions that can help protect future default and it provides a way to diversify income,” Halcyon noted.

The software partnership comes amid strong sales in Encompass in Q3 2023.

In its latest quarterly earnings, ICE Mortgage Technology reported an adjusted operating income of $131 million despite the headwinds in the mortgage industry.

In Q3, about 60% of existing Encompass customers that were due for a renewal increased their base subscriptions. 

Following ICE’s acquisition of Black Knight in September, ICE had been focusing on cross-selling opportunities across the platform and ICE’s expanded customer base.

ICE identified north of $300 million worth of opportunities for the company to go after which includes cross-selling data and document automation platform to the entire Black Knight’s mortgage servicing system.

Executives expect net revenue synergies of up to $125 million by 2028 largely through cross-sell opportunities.