From data fragmentation to integration: establishing a more unified origination workflow in Encompass®

Managing multiple data vendors is one of the more persistent operational burdens in mortgage lending. Each vendor relationship means a separate contract, a separate integration, a separate support queue and a separate data format to reconcile. When something goes wrong, such as a fee discrepancy, flood zone question or flagged fraud alert, lenders have to determine which vendor owns the issue before they can even begin to work towards a resolution. Meanwhile, the loan sits.

The downstream effects compound quickly. Underwriters are pulling data from disconnected sources. Loan officers are searching for documents that have already been provided by the borrower. Compliance teams are patching together audit trails after the fact. Fragmented data doesn't just slow loan production; it introduces risk at each stage and drives up the cost of every loan you originate.

Consolidating data and workflows into a single platform help to remove those barriers. ICE provides reliable data solutions that are integrated into the Encompass® loan origination system to improve the loan origination process, helping to make it faster, lower-risk and more profitable.

When data lives outside the origination workflow, teams spend more time reviewing and analyzing information than acting on it. ICE’s data offerings in Encompass address the challenges of fragmented data and help lenders make faster, more informed decisions through an automated, data-driven process. With a single source for flood determinations, property valuations, fraud monitoring, tax data and fee calculations, lenders have all the data needed inside existing workflows to keep loans flowing through the pipeline efficiently. No need to navigate separate platforms, and no vendor juggling required.

Lenders may choose to source fee and tax data from a dedicated vendor outside their LOS, then manually reconcile that data before it can be used. When fees change, someone has to catch it. When a cure occurs, someone has to trace it back across systems. ICE research shows fee cures occur on more than one in three loans, costing lenders an average of $1,225 per loan. This may be a direct consequence of data that’s disconnected from the origination workflow.

ICE’s Fee Solutions deliver automated fee and tax data within Encompass. Getting verified data early in the process cuts the time and cost of tracking down fee changes manually and reduces surprises that can jeopardize closing. Fee Monitoring tracks jurisdictional-level fee changes and alerts lenders automatically when a fee changes. The Fee Cures Dashboard summarizes fee change sources, so the root cause can be addressed before further fee cures occur.

Property tax data is also often outsourced, requiring lenders to manually pull information and transfer it into the loan file. That handoff creates room for error and adds manual steps on every loan.

ICE’s Property Tax Solutions bring that process inside Encompass, providing property tax information for both loan estimates and closing disclosures, with verified tax data feeding into the origination workflow. This supports compliance with TRID guidelines, reduces the time and cost associated with procuring tax data and lowers risk through robust data integration and automation. Additionally, flexible configuration lets lenders adapt the system to support regional requirements.

Flood determinations are typically ordered from a standalone vendor, with results returned outside the LOS and tracked separately. That means another integration to maintain, another relationship to manage and another data source to manually bring into the loan file.

ICE Flood is integrated into Encompass to deliver comprehensive, automated flood reports, enhanced with current property assessment data. With ICE Flood, lenders get Encompass and MSP® loan servicing integration for life-of-loan monitoring, certification maps with intuitive visuals of the property and flood zone, and direct customer service access without relying on chatbots or AI. Plus, lenders only pay for the flood report when the loan closes.

Mortgage fraud is growing more sophisticated. Due to the latest AI and technological advancements, it’s easier than ever to access and manipulate personal and financial information. Fraudulent applications, inflated appraisals and identity misrepresentation can each result in loan losses and regulatory scrutiny. Further, legacy fraud solutions are using fragmented systems and stale data, resulting in false positives and processing bottlenecks.

ICE's Fraud Monitor combines proprietary and third-party data with advanced logic to monitor, detect and resolve fraud throughout the loan application, all within a single system. Integrated into Encompass with built-in property research capabilities, the solution automatically flags legitimate fraud concerns for review and reduces the need to manually clear non-fraud issues. The solution automates tracking against federal watchlists and GSE "do not sell" lists (including the Freddie Mac Exclusionary List, credit bureaus, etc.) and proactively adds new data without the need for human intervention. Configurable quantified fraud scoring helps to further support unique lender compliance needs and expedite loan processing.

Property research is one of the more time-intensive parts of early-stage origination. Without integrated data, lenders must manually search for information from multiple websites and public records sources.

ICE’s property data reports provide on-demand access to nationwide property details in Encompass. This data consolidation helps to support smarter decisions and resource allocation earlier in the process, reducing the need to manually collect data from multiple sources. Lenders gain due diligence insights that support early identification of data irregularities or blind spots (HOAs, straw buyers, multiple-property ownership, ownership/transaction discrepancies, etc.). With that data built into the workflow, lenders can flag changes and inconsistencies, trigger alerts, prefill data fields and configure pay-per-close-loan preferences.

Accessing reliable appraisal and valuation data has traditionally required coordinating with external AMCs and appraisers, with results that arrive outside the LOS and require manual review and upload. That adds time to every transaction and introduces variability into a part of the process where consistency matters.

ICE’s valuation solutions provide high-quality, consistent and objective property valuation estimates. Drawing on public records, multiple listing service (MLS) data, automated valuation models (AVMs) and property condition data, lenders achieve more accurate valuations and faster appraisal turn times. This reduces appraisal overages and reconsiderations while improving collateral risk modeling.

According to a study conducted by Marketwise Advisors, using Encompass delivers an average $1,056 increase in gross profit per loan. Organizations also see a 23% increase in loan production volume without adding staff, and a three-day reduction in cycle times from application to close.

With Encompass’ integrated solutions providing reliable, real-time data where you already work, execute smarter pricing strategies, reduce back-and-forth with borrowers and achieve higher loan pull-through rates, while delivering an experience that sets your origination process apart.