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ICE Mortgage Tech is made up of 3 businesses: 1. MERS - fully bought in 2016 for ~$200M 2. Simplifile - bought in 2019 for $335M 3. Ellie Mae - bought in 2020 for $11B (ICE's largest deal ever) What did an $11.5B outlay give ICE?

In its simplest terms, MERS is a big database that tracks changes in mortgage servicing rights & beneficial ownership of residential loans. ~85% of all newly originated US mortgages use MERS as its registry of record. TLDR: MERS = LOAN DATABASE

Simplifile is a document management platform that lets property lawyers & lenders share documents & close transactions online. They also allow counties to receive documents & fees electronically, w/a client network of over 2,000 counties. TLDR: SIMPLIFILE = DOCUMENT PLATFORM

Ellie Mae is The Big Kahuna - an all in one SaaS mortgage management platform for originators & supporting vendors. Clients can use Ellie Mae to underwrite, close & process all parts of an origination without leaving the platform. TLDR; ELLIE MAE = AUTOMATION PLATFORM

With all this in mind, the question becomes 'why ICE?' I think the answer is two-fold: 1 - analog to digital transition experience 2 - clearinghouses

ICE has a lot of experience electronifying inefficient markets, like futures, bonds, equities & options. Mortgages look like another instance of taking a paper process and putting it online, cutting a ton of costs by doing so even if it isn't a "market" like its other segments.

MERS and Simplifile have a lot in common with ICE's derivatives clearinghouses. They act as databases/systems of record and involve a lot of legal/compliance burden. This makes them incredibly hard to disrupt once critical mass is reached.