ICE to offer lenders links to financial advisors with new integration

Intercontinental Exchange and Halcyon unveiled a new agreement, which will allow lenders to offer access to investment advisory advice through the Encompass loan-origination system.

Through its participation on Encompass Partner Connect, Halcyon will offer originators using ICE Mortgage Technology's tool the opportunity to quickly introduce borrowers to registered investment advisors through a new integration. Given the knowledge of customers' income, expenses and potential future needs obtained during the borrowing process, a loan officer can choose to offer a connection to an RIA to help clients improve their financial health. 

While aimed at diversifying revenue opportunities and strengthening the borrower-lender relationship, the service is also intended to help protect the homeownership investment, with the mortgage client receiving guidance for no cost that may keep them out of future loan distress, Halcyon said. 

"Halcyon is excited to help borrowers prepare for their future, while helping lenders diversify their offerings and revenue," said Halcyon CEO Kirk Donaldson in a press release. "We are the first to provide this service through Encompass Partner Connect, and lenders will immediately see the value."

All tracking and compliance behind correspondence with an RIA are taken care of through Halcyon's technology, according to the software firm.

The RIA offering from Red Bank, New Jersey-based Halcyon is the latest integration it has made available to mortgage lenders. In September, the company took top prize at National Mortgage News' Innovation Challenge for its demo of a different software product, which speeds up income and tax verification by connecting originators and underwriters directly to Internal Revenue Service documents. The company also offers tax preparation services.

The latest tie-up between companies comes as lenders seek new opportunities for marketing and revenue in 2024, with lending volumes expected to remain subdued for several months. 

While many mortgage companies are focusing on establishing partnerships with builders and real estate agencies, some, like Loandepot, are also developing relationships with businesses providing home products. Other lenders have introduced personal and home equity loans among their suite of offerings in the past 24 months.

Meanwhile, after receiving approval of its merger with Black Knight, ICE said it was focused on cross-selling Encompass to lenders already using the industry-leading servicing software it acquired through the deal. Company officials estimated that segment of potential new Encompass customers could account for 15% to 20% of total annual loan origination volume. 

In the third quarter, ICE Mortgage Technology reported a $157 million loss, but Black Knight posted net income of $55.3 million in its final three months as a publicly traded enterprise. The mortgage technology business' parent company is scheduled to announce fourth-quarter and full-year earnings on Feb. 8.