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Intercontinental (ICE), Freddie Mac Join to Enhance Loan Quality
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Intercontinental Exchange, Inc. (ICE - Free Report) recently announced its partnership with Freddie Mac in a bid to improve the loan quality for lenders in the mortgage origination process. This partnership will aid lenders to serve more borrowers along with lowering risk.
This move bodes well for Intercontinental, which aims to strengthen its Mortgage Technology segment. This segment’s revenues accounted for 19% of ICE’s consolidated revenues in 2023. This partnership should benefit from the solutions and automation technologies of both companies’ aiding lenders to underwrite mortgage loans in an effective way.
ICE aims to improve loan quality from origination to delivery in a bid to reduce defects and reduce costs in the mortgage origination process. Moves like this should aid ICE in achieving its 2024 revenue growth target of low to mid-single digits in its Mortgage Technology segment.
ICE aims to streamline the housing finance industry and aid in reducing related repurchases by providing a transparent, accessible and simple path for home ownership. Freddie Mac’s expertise in automation, allowing lenders to use employment and asset data to verify the income, employment and assets of a borrower, bodes well. Income verification issues account for 33% of all purchase transaction defects. Hence, the automation process for confirming and documenting income is likely to produce loans with fewer defects.
This move will complement ICE’s acquisition of Black Knight and help it counter the pain points and inefficacies in the mortgage workflow. ICE expects to continue making investments in its products, further improving the mortgage system and providing improved efficiencies to partners, servicers and lenders.
Zacks Rank and Price Performance
Intercontinental currently carries a Zacks Rank #3 (Hold). Shares of Intercontinental have gained 9.1% in the past three months compared with the industry’s 7.2% growth.
CNO Financial’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the mark twice, the average beat being 3.62%. The consensus estimate for CNO’s 2024 earnings suggests an improvement of 2.6% from the year-ago reported figure.
The consensus mark for CNO’s 2024 earnings has moved 4.3% north in the past 60 days.
Erie Indemnity’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 11.24%. The Zacks Consensus Estimate for ERIE’s 2024 earnings indicates an 18.3% rise, while the same for revenues suggests an improvement of 11.4% from the respective prior-year reported figures.
The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past 30 days.
Assurant’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 42.15%. The Zacks Consensus Estimate for AIZ’s 2024 earnings indicates a 3.4% rise, while the same for revenues suggests an improvement of 4.1% from the respective prior-year reported figures.
The consensus mark for AIZ’s 2024 earnings has moved up 1.4% in the past 30 days.
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Intercontinental (ICE), Freddie Mac Join to Enhance Loan Quality
Intercontinental Exchange, Inc. (ICE - Free Report) recently announced its partnership with Freddie Mac in a bid to improve the loan quality for lenders in the mortgage origination process. This partnership will aid lenders to serve more borrowers along with lowering risk.
This move bodes well for Intercontinental, which aims to strengthen its Mortgage Technology segment. This segment’s revenues accounted for 19% of ICE’s consolidated revenues in 2023. This partnership should benefit from the solutions and automation technologies of both companies’ aiding lenders to underwrite mortgage loans in an effective way.
ICE aims to improve loan quality from origination to delivery in a bid to reduce defects and reduce costs in the mortgage origination process. Moves like this should aid ICE in achieving its 2024 revenue growth target of low to mid-single digits in its Mortgage Technology segment.
ICE aims to streamline the housing finance industry and aid in reducing related repurchases by providing a transparent, accessible and simple path for home ownership. Freddie Mac’s expertise in automation, allowing lenders to use employment and asset data to verify the income, employment and assets of a borrower, bodes well. Income verification issues account for 33% of all purchase transaction defects. Hence, the automation process for confirming and documenting income is likely to produce loans with fewer defects.
This move will complement ICE’s acquisition of Black Knight and help it counter the pain points and inefficacies in the mortgage workflow. ICE expects to continue making investments in its products, further improving the mortgage system and providing improved efficiencies to partners, servicers and lenders.
Zacks Rank and Price Performance
Intercontinental currently carries a Zacks Rank #3 (Hold). Shares of Intercontinental have gained 9.1% in the past three months compared with the industry’s 7.2% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space are CNO Financial Group, Inc. (CNO - Free Report) , Erie Indemnity Company (ERIE - Free Report) and Assurant, Inc. (AIZ - Free Report) . CNO Financial sports a Zacks Rank #1 (Strong Buy), while Erie Indemnity and Assurant carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNO Financial’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the mark twice, the average beat being 3.62%. The consensus estimate for CNO’s 2024 earnings suggests an improvement of 2.6% from the year-ago reported figure.
The consensus mark for CNO’s 2024 earnings has moved 4.3% north in the past 60 days.
Erie Indemnity’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 11.24%. The Zacks Consensus Estimate for ERIE’s 2024 earnings indicates an 18.3% rise, while the same for revenues suggests an improvement of 11.4% from the respective prior-year reported figures.
The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past 30 days.
Assurant’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 42.15%. The Zacks Consensus Estimate for AIZ’s 2024 earnings indicates a 3.4% rise, while the same for revenues suggests an improvement of 4.1% from the respective prior-year reported figures.
The consensus mark for AIZ’s 2024 earnings has moved up 1.4% in the past 30 days.