ICE Mortgage Technology Reports $ 95M Operating Income in Q2



ICE Mortgage Technology reported better-than-expected Q2 results thanks to increased new customers and wider adoption digital workflow tools, executives at parent company Intercontinental Exchange said during a conference call.

“Mortgage technology revenues were up 17% year-over-year, second-quarter transaction revenues were up 8%, while recurring revenues were up 36% to US $ 136 million, which exceeded our upper limit. forecast, ”said Warren Gardiner, head of the Intercontinental Exchange. CFO

In the first quarter, operating revenues were $ 125 million, and in the second quarter of last year, it was $ 100 million on an estimated basis.

GAAP operating income for ICE Mortgage Technology in the second quarter was $ 95 million, compared with $ 106 million in the first quarter and $ 31 million in the second quarter of 2020.

However, the results from a year ago do not take into account the significant impact Ellie May purchasewhich was completed in early September 2020.

Using an adjusted estimate that accounts for the division as if Intercontinental Exchange had owned Ellie Mae, MERS and Simplifile since 2018, plus corporate spending, ICE Mortgage Technology generated $ 189 million in the second quarter, up from $ 214 million in first quarter. quarter, but more than $ 160 million a year earlier.

“Moving on to the third quarter, we expect operating revenues to continue to grow consistently between $ 137 million and $ 142 million, about a 30% increase over last year,” Gardiner said.

“Through its active subsidiaries, ICE Mortgage Technology is in contact with almost every industry participant,” added Intercontinental Exchange President Benjamin Jackson.

“As these new customers come into our network, we profit from new subscriptions and have the opportunity to grow relationships with customers over time as they make additional decisions, as we’ve seen in our other markets,” Jackson said. “This flywheel effect … gives us confidence that we can grow a $ 1.2 billion business today, which is only a fraction of the $ 10 billion addressable market that is at the dawn of analog-to-digital transformation.” …

The bulk of ICE Mortgage Exchange’s operating income comes from one-time transactions that users make with the company. In the second quarter, operating revenue was $ 204 million, compared with $ 230 million in the first quarter. These businesses are estimated to have generated $ 190 million in transaction revenue during the reporting period.

The Intercontinental Exchange recently rolled out the ICE Locked Rate Feed, using daily mortgage rate information from a lending system, which is then fed into a mortgage-backed prepayment model created by its fixed income business.

“This is the first time we’ve combined valuable core content from ICE Mortgage Technology with our expertise in identifying and creating new data offerings,” said Jeffrey Sprecher, Chairman and CEO of Intercontinental Exchange. “This is an improvement [is one] from the many innovative solutions that we can offer our customers as a result of the synergies that exist on our platform. “


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