New ICE integration aims to ease home equity borrowing

ICE Mortgage Technology unveiled a new app integration that allows homeowners to quickly take a look at their available equity based on a self-guided property valuation.

The application programming interface connects the company's borrower-facing servicing digital tool with its home valuation Validate app. Once a homeowner conducts their own valuation through Validate, the new integration will also be able to reveal the amount of tappable equity available, without formal initiation of a new application.  

On top of giving a homeowner insights into property value, the integration will alert their servicer of the potential of a new home equity loan client and expedite the application process if one arrives, with the valuation data already accessible.

"Most homeowners do not have a complete understanding of their housing wealth," said ICE Mortgage Technology President Tim Bowler. "This integration between Validate and Servicing Digital aims to help address that information gap by informing households of how much equity they have."

"In addition, these tools fully integrate with the same banking app households use to manage their mortgage, so consumers can quickly and easily explore the current and condition-specific value of their home," he said.

ICE's Servicing Digital app connects a user to data on its mortgage platform and can be configured to advise a mortgage borrower of tappable equity. It will also steer them to take advantage of Validate, which applies computer vision tools in the process. 

The integration comes as the amount of accrued home equity hit a record high in early 2024. At the end of the third quarter, total homeowner equity across the U.S. stood at $17.2 trillion, with the amount considered tappable at $11.2 trillion, according to ICE Mortgage Technology reports. Tappable equity has increased by $5.5 trillion since late 2019, it said. 

While total equity is growing, U.S. homeowners have not come close to drawing amounts available to them. At the same time equity has accrued, the acceleration of mortgage rates since 2022 sharply diminished the appetite for refinancing. 

The trends combined to bring an influx of new second-lien and home equity loan products over the past two years, as lenders shifted their focus in the elevated rate environment. In 2024, the likes of Better and Figure both introduced new home equity loans or lines of credit.  

Some of the products add new features or loan terms that were previously not available on home equity liens. Products have come on the market as the secondary market for home equity  securitizations is also experiencing an uptick.