Ready to unlock the full potential of Encompass?
Amid rising origination costs and shifting market conditions, mortgage lenders are looking to enhance efficiency, reduce costs and improve loan quality.
To help mortgage lenders maximize profitability and streamline operations, ICE enlisted MarketWise Advisors to conduct an in-depth analysis into the financial impact of the Encompass digital lending platform on a lender’s business performance. Scroll down to access the study's key findings, including insights into how Encompass optimizes loan processing workflows, reduces errors, enhances profitability and enables lenders to scale operations effectively.
About the study
The Encompass ROI Study is in its fifth installment since its inception in 2016. Its latest iteration focused on ICE customers who have consistently utilized Encompass for at least six months, managing an average of 50 loans per month. The study also examined the incremental impact of using additional ICE solutions like ICE’s Product and Pricing Engine (ICE PPE), Encompass eClose and ICE Data and Document Automation in conjunction with Encompass. The industry participants represented a mix of executives, enterprise and mid-market lenders, with substantial expertise in mortgage operations and technology. All told, the study analyzed the experiences of 171 employees from 147 companies who fully adopted Encompass and other ICE solutions for their lending operations, comparing their performance to before implementation.
Customers saw an average return of $5 for every $1 spent on Encompass
ROI of Encompass improves to 8-to-1 during periods of higher loan volumes
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Encompass delivers a 5-to-1 return on investment (ROI)
For every $1 spent on Encompass, customers saw an average return of $5. This ROI potential can help lenders drive significant financial value from their technology amid lower origination volumes. Historically, the data shows that as market demand increases, the ROI of Encompass improves further to 8-to-1 during periods of higher loan volumes.
$592 save from workflow automation
Reduce manual touches and save up to 14 hours per loan with Encompass automation features
$304 save from capacity/staffing efficiencies
Process up to 23% more loans without added resources using a streamlined workflow
$95 saved from lower cycle times
Close an average of 3 days faster to reduce hedge costs, lower warehouse line carry costs and improve customer satisfaction
$65 saved from improved loan quality
Increase accuracy and reduce errors by up to 13% with industry-leading compliance tools in Encompass
02
Encompass increases gross profit per loan for clients
One of the most compelling findings was that Encompass enables lenders to generate an additional $1,056 in gross profit per loan, an 8.7% increase from $971 per loan reported in a similar client study conducted in 2022. This figure highlights the platform’s continuous improvement driven by innovation and the long-term potential to expand profit margins for lenders who use the technology over the course of several years.
03
The impact of Encompass had grown over time
The 2024 Encompass ROI study marks the fifth analysis since 2016 to evaluate the average client-reported gross profit per loan impact of using Encompass. Compared to previous studies, the latest findings show a 10.6% increase in the average gross profit per loan benefit reported by customers. Several factors were cited by clients as contributors to this growth, but the most prominent reason was the continuous enhancement of the product. Over the past eight years, ICE has consistently introduced innovations that have streamlined and optimized the Encompass user experience, amplifying its perceived value among clients.
Workflow automation improved operational capacity by an
incremental 11%
Additional gross profit potential of
$149 per loan
04
Encompass API usage boosts profit margins
The research study also identified that clients who utilize Encompass’ API suite for workflow automation improve their operational capacity by an incremental 11% above and beyond the operational capacity increase delivered from utilizing Encompass’ core capabilities. This increase in operational capacity equates to an additional gross profit potential of $149 per loan when calculated against the average cost of lender operational employees. This finding highlights the value of integrating advanced automation into everyday operations.
Saved an average additional
223 minutes per loan
Operational cost savings of
$156 per loan
05
ICE Data and Document Automation delivers additional savings
Finally, the research study identified that Encompass clients who also use ICE’s Data and Document Automation solution for workflow automation in conjunction with their Encompass lending workflow save an average additional 223 minutes per loan (beyond from the time savings driven from core Encompass capabilities). Study participants identified that the incremental time savings are driven from improved document management, categorization, loan delivery and collaboration as a result of using ICE Data and Document Automation. The time savings equates to an operational cost savings of $156 per loan.
Product capabilities that drive the most value
The study shed light on specific Encompass features that clients credited for the substantial cost and efficiency gains. Below are the top five Encompass product capabilities that clients reported as having the largest impact on their operational performance:
Business rules and workflow engine
Used by clients to automate repetitive time-consuming, manual tasks
Encompass eFolder
Used by clients to streamline the sending, receiving and management of documents and signatures
Encompass eClose
Used by clients to ensure a smooth digital closing process and exceptional borrower experience from start to finish
Encompass Compliance Service
Used by clients to support regulatory and industry requirements and guidelines
Encompass Investor Connect
Used by clients to streamline the distribution of loan data and documents to investors and warehouse lenders during the shipping, funding and secondary marketing processes
Clients reported that these capabilities serve as building blocks for using Encompass to streamline operations, minimize risks and enhance profitability.
Ready to experience similar financial improvements?
Elevate your operations and deliver measurable ROI
If you’re ready to unlock the full potential of Encompass, contact us today to schedule a demo or consultation.
