Intercontinental Exchange Beefs Up Mortgage Operations By Buying Ellie Mae
Intercontinental Exchange (NYSE: ICE) added another piece to its mortgage business recently by buying Ellie Mae from private equity firm Thoma Bravo. While Intercontinental Exchange is known primarily for owning the New York Stock Exchange, it has been increasing its footprint in fixed-income trading and the mortgage business. Intercontinental Exchange sees the mortgage business as the fastest-growing part of its verticals, and the company now has an end-to-end offering in the space.
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Ellie Mae is a software-as-a-service company that helps mortgage originators automate the origination process. Costs to originate have been climbing as Washington adds more layers of compliance. The company estimates that the cost of originating a loan has doubled in the past 10 years. The next phase of cost savings will come from digitizing the mortgage experience. The Ellie Mae offering includes processes to streamline tasks like underwriting and processing, and it allows users to connect with different vendors, from mortgage insurance companies to title companies, via its systems.
Source Fool.com
