ICE Whitepaper Reveals Hidden Cost of Mortgage Fee Cures
23 Maio 2024 - 10:00AM
Business Wire
Preventable expenses eroding lenders’ profit
margins
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of technology and data, released “The hidden cost of
fee cures,” a whitepaper based on an analysis of preventable
expenses eroding mortgage lender profits.
The TILA-RESPA Integrated Disclosure (TRID) rule, also known as
“know before you owe,” requires mortgage lenders to provide
borrowers with a detailed accounting of costs and fees associated
with purchasing or refinancing a home. Any errors made in the
disclosure are the lender’s responsibility to detect and rectify.
Depending on the specifics of the errors, lenders may be required
to pay the difference between the disclosed and updated costs.
“With origination inching off a 30-year low, lenders need to be
as efficient and detailed as possible. Every basis point counts,”
said Tim Bowler, President of ICE Mortgage Technology.
“Unfortunately, fee cures and the costs associated with them –
entirely preventable expenses – are contributing to the already
ballooning cost to originate a mortgage.”
Keeping track of frequently changing closing costs, especially
transfer taxes, can be a major pain point for lenders. Failure to
keep up with such changes can be an expensive proposition.
Anecdotal evidence has long-suggested fee cures are cutting into
origination revenue and, indeed, an ICE review of nearly 90,000
mortgages found an average of $1,225 per loan wasted on fee cures
and related expenses.
Not only is this a significant amount when extrapolated over a
lender’s entire pipeline, but the prevalence of such cures is
startling. The study also found that over a period of just six
months, more than one out of every three loans reviewed for this
study required some type of fee cure.
ICE Fee Solutions documented more than 31,000 transfer tax
changes from 2021 through early 2023, and the trend is
accelerating. These changes can have short implementation
timelines, variable schedules, and substantial fee increases, all
of which pose operational challenges for lenders trying to rapidly
document these changes.
For more information on the true cost of fee cures, how to
minimize these preventable expenses to maximize profit margins,
download ICE’s latest whitepaper here.
About Intercontinental Exchange
Intercontinental 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.
Source: Intercontinental Exchange
Category: Mortgage Technology
ICE-CORP
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version on businesswire.com: https://www.businesswire.com/news/home/20240523300870/en/
ICE Media Contact Mitch Cohen mitch.cohen@bkfs.com +1
704-890-8158
ICE Investor Contact: Katia Gonzalez
katia.gonzalez@ice.com +1 (678) 981-3882
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