Plaid Integrates Home Lending Report Into Encompass

Financial technology company Plaid announced Tuesday that it has integrated its Home Lending Report into the Encompass loan origination system from ICE Mortgage Technology — a move Plaid says will streamline digital asset verification for mortgage lenders.

The integration embeds Plaid’s verification tool directly into Encompass, allowing loan officers and underwriters to access borrower asset data within the system lenders already use to originate mortgages.

Mortgage origination costs have risen roughly 35% over the past three years while loan volumes remain pressured, pushing lenders to seek ways to improve operational efficiency, the company said. Plaid said many lenders still rely on manual document collection because some verification solutions struggle to gain borrower adoption.

Plaid’s approach replaces document-based verification with an account-linking process that allows borrowers to connect their bank accounts. The company said the method is familiar to many consumers and can simplify the verification step in the mortgage application process.

According to Plaid, up to 80% of borrowers complete account linking during loan application flows using its platform, which can reduce the need for follow-up requests and manual processing by lending staff.

Once borrowers connect their accounts, Plaid generates the Home Lending Report that appears within the Encompass dashboard. The report includes up to two years of consumer-permissioned financial data — including categorized deposits and withdrawals, average balances, nonsufficient-funds counts and income derived from assets.

The data provides lenders with a more current view of a borrower’s financial position compared with traditional document-based verification, Plaid said in a blog post to announce the partnership.

For agency loans through the government-sponsored enterprises Fannie Mae and Freddie Mac, the report supports GSE-aligned asset verification within Encompass, strengthening their eligibility for reps and warranties relief. Plaid said the capability may allow eligible lenders to qualify for certain representations and warranties relief programs.

The company added that the tool is also certified for use with Fannie Mae’s Day 1 Certainty program and Freddie Mac’s asset and income model.

By embedding the verification workflow within Encompass, Plaid said the integration reduces the need for lenders to switch between systems while reviewing borrower financial information and managing verification tasks.

Plaid’s announcement follows other similar integrations with Encompass.

At the end of February, Addy AI announced an integration with ICE to bring its loan officer workflow tools into Encompass. And in January, Land Gorilla announced that it had expanded its Encompass integration to the Partner Connect framework, adding AI-powered automation for construction loans.