[David] Allen, when I was talking to Brian Vieaux Flocker earlier, I’m not talking, we were texting back and forth. My phone blew up as soon as that press release came out and so I’m hearing from so many people that I’m interacting with Brian. Brian Vieaux is one of the guys, but Allen, he made a really good point. He says this will be a big hit to ICE. For example, Mr. Cooper has sagent for their tech platform on their servicing, and Marc, you may wanna jump in and comment on that. So they are gonna move anything servicing O from off of the Ice Black, the old Black Knight system off into the Sagent Technology. And Rocket has its own proprietary tech when it comes to their origination platform. So again, this could have a significant impact on ice. Now this is my comment. Now Brian’s, I’ve always been saying, I think we may have seen ICE hit their high watermark, especially when you see these mergers and acquisitions, when there’s tech that the companies that are acquiring have, are outside of the ice ecosystem. So are, to what effect does that have? Very interesting. So Allen, give your comments first and add Marc to it.
[Allen] Yeah, I appreciate it. It’s interesting. I actually had, compared when the Redfin deal had occurred I had compared that against ICE and so did my good friend GPT. And one of, and I just tried to pull up my notes really quick. One of the things that we looked at in comparison let’s see the acquisition aims at, to merge. This is about Redfin to merge Rocket’s mortgage services at Redfin’s real estate operational synergies, leadership market reaction. So I gotta go back and find it but ultimately, GPT said they’re not so much in competition. However, if you consider what continuous acquisitions and technology will provide to them, you can start to say some folks, there’s a lot of crossover. By the way, if I can, David, I was gonna talk about something about the technology side of this acquisition in my segment, but if I can just roll it right in. It’s just three very quick points if you’re okay with that.
[David] Yeah, please.
[Allen] Here’s the really big thing. So when you look at Rocket and the acquisition of Redfin, and now this acquisition by acquiring Mr. Cooper, they aim to bolster data analytics and artificial intelligence capabilities. That’s the key piece here, folks. Artificial intelligence capabilities. They’re gonna leverage extensive data, the servicing portfolio, the origination portfolio the trend data that Encompass doesn’t necessarily have right now or ICE rather the predictive modeling for origination and customer insights about what happens on the origination side and what happens in the servicing side. ICE does have some data, but this is a plethora of more data that is gonna be used much faster. The other thing is that when you talk about origination and everybody’s trying to unify and consolidate systems we’ve been talking about it for years. We’re finally there a little bit. So when you think of this acquisition, think about the comprehensive digital platform that they’re putting together. Think about, what Redfin has on the front end. Think about what Rocket has on the services side and the originators that are tied into that platform. And then think about the end to end experience for a home buyer. So you’re not talking about an LOS platform that’s offering service to all the lenders. You’re talking about one unified platform is a brand to be reckoned and then the last thing, last bullet, David. The operational efficiencies and the technology investments. Think about all the tech now that is available. Mr. Cooper has been investing in technology. I’ve actually done project with you, David. We did a project for Mr. Cooper, if you remember right together. I remember it. So at the end of the day, the operational efficiencies and the anticipated savings of at least 400 million through the streamlined operations and tech investments that are gonna be made will lead to this crazy, giant, robust, scalable mortgage platform. Just wait for the Super Bowl commercials next year.
[David] Yeah. Can you imagine? Can you imagine? Great perspective, Allen.
Allen Pollack
, Chief Operating Officer, Tech Consultant
Allen Pollack, a Mortgage & Financial Services Technology Advisor, is a subject matter expert in the mortgage origination process along with software product management and software development.
In today’s financial services push to all things Digital, Allen has been helping lenders and financial services solution providers align their digital transformation and technology strategies by removing the human element of risk, and automating processes that drive efficiencies and margins into profits.
Over the course of his career, Allen has co-created and developed technology business models that have birthed highly successful, innovative solutions and companies.
Allen co-founded and served as CTO of New York Loan Exchange (NYLX), a loan product eligibility and pricing engine (PPE) that made an immediate impact on the industry, scaling the company quickly and forming partnerships with multiple mortgage and financial lending companies. In 2012, Allen was a co-founder of a merger between NYLX and Aklero Risk Analytics that created LoanLogics, A Mortgage Loan Quality and Performance Analytics company. Allen served as CTO where he continued to bring new and innovative product solutions to the market that made a significant impact to mortgage lenders that reduced risk, scaled business channels, and grew profits in a very competitive and highly regulated market.
Allen is also is mortgage and finance technology contributor on a weekly live industry podcast, Lykken on Lending, and is launching a new podcast soon to be released, TechStack Radio, dedicated to technology and innovation in Financial Services.