Article Summary
ICE introduced Residential Whole Loan Evaluations to provide model-driven pricing for unsecuritized residential mortgages, including QM, non-QM and specialty loans. Evaluations can be produced daily or monthly and delivered via secure file delivery through the ICE Data API. AI Summary
Intercontinental Exchange (ICE) announced on Wednesday the launch of a new service to provide evaluated pricing for individual residential whole loans, extending its pricing tools beyond securitized mortgage assets.
The service, ICE Residential Whole Loan Evaluations, is designed to provide model-driven pricing for unsecuritized residential mortgages — including qualified mortgages, nonqualified mortgages (non-QMs) and specialty loans.
Residential whole loans have grown as a segment of the fixed-income market but have not had the same pricing infrastructure available for securitized assets, the company said.
The evaluations use ICE’s existing pricing process and are overseen by a team of evaluators. The methodology incorporates loan-level information provided by clients along with data and analytics from ICE’s mortgage and data businesses.
These inputs include ICE’s AFT Prepayment and Credit Model, which projects prepayments, defaults and delinquencies; the ICE Home Price Index, which provides home price data across about 28,000 ZIP codes; and ICE origination data, which is updated daily from more than 3,000 lenders.
The home price data is used to estimate current loan-to-value ratios, while origination data helps calibrate spread and yield inputs, ICE said.
“For years ICE has delivered comprehensive and transparent evaluated pricing for a broad range of financial instruments,” Varun Pawar, chief product officer of data services at ICE, said in a statement. “Bringing this service to the residential whole loans space provides our customers with one pricing source across different loans.”
Evaluations can be calculated daily or monthly and delivered through secure file delivery using the ICE Data API.
ICE said the service can be used by various participants in the residential mortgage market, including institutions involved in the purchase, sale and valuation of whole loans. The company provides fixed-income evaluations on about 3 million instruments, its press release confirmed.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.
