Digitizing the Housing Finance System

by | Jan 10, 2023 | Housing and Land Use, Saul's Insights | 0 comments

Lesson Plan For The Future

Digitizing the Housing Finance System

Who will be touched? Mortgage Loan Professionals? Real Estate Professionals. Both?
Intercontinental Exchange (ICE) – The biggest company you never heard of.
ICE has spent in the neighborhood of $30 Billion in acquisitions to bring its dream to reality, which includes a real estate futures market.
From Wikipedia:
Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services.
Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and OTC energy, credit and equity markets.
  • ICE also owns and operates six central clearing houses: ICE Clear U.S., ICE Clear Europe, ICE Clear Singapore, ICE Clear Credit, ICE Clear Netherlands and ICE NGX. ICE has offices in Atlanta, New York, London, Chicago, Bedford, Houston, Winnipeg, Amsterdam, Calgary, Washington, D.C., San Francisco, Tel Aviv, Rome, Hyderabad, Singapore and Melbourne.
  • John Reilly, Terri Murphy and I had this discussion right after ICE closed the deal to purchase Black Knight back in May (a purchase which included Collateral Analytics and Optimal Blue), for $13.1 Billion. Note: still awaiting review by the Federal Trade Commission over antitrust concerns.
  • The big conversation nobody talks about is the restructuring of the Housing Finance System, something ICE has been piecing together.
  • Loans are a “Manufactured Financial Product,” costing on average over $10,000 to create. This will change and the timing is right.

The Digitization of the Housing Finance System is taking place as we speak.


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