ICE Targets Mortgage Fraud Bottlenecks With New Encompass Integration – NMP Skip to main content

ICE Targets Mortgage Fraud Bottlenecks With New Encompass Integration

Jun 01, 2026
AI Mortgage Fraud
Managing Editor

New tool combines fraud scoring, property research and automated condition management within the LOS workflow

Intercontinental Exchange (ICE) has launched a new mortgage fraud detection and property research platform designed to help lenders identify potential risks earlier in the underwriting process while reducing manual reviews.

The Fraud Monitor is integrated directly into Encompass, ICE's loan origination system, and centralizes fraud risk scoring, property research data, and supporting documentation in a single dashboard. ICE said the platform is intended to reduce the need for underwriters to navigate multiple vendor systems while streamlining fraud reviews and condition management.

"Fraud reviews are often fragmented and highly manual, creating bottlenecks in the underwriting process and contributing to condition fatigue among lenders," said Bob Hart, president of mortgage technology at ICE. "Fraud Monitor helps simplify that process by bringing fraud detection, condition management, and supporting documentation into a unified workflow within Encompass. By automating portions of the review process and giving underwriters faster access to detailed reports, they can identify and resolve potential fraud risks more efficiently while keeping loans moving through the pipeline."

The launch comes as lenders and settlement service providers face growing concerns about increasingly sophisticated fraud schemes targeting mortgage transactions and closing processes.

According to CertifID's 2026 State of Wire Fraud report, 85% of consumers said they would be willing to pay more than the standard cost of title services if fraud protection were included. More than seven in 10 respondents said they would pay at least $50 extra, while 43% said they would pay $101 or more, reflecting growing awareness of fraud risks during real estate transactions.

The report also highlighted the growing role of artificial intelligence in fraud schemes. CertifID warned that AI-powered tools are making it easier for criminals to create convincing fraudulent communications, including spoofed emails, voice-cloning attacks, and deepfake content designed to impersonate trusted parties in a transaction.

Last year, CertifID identified three primary fraud categories affecting real estate transactions: buyer cash-to-close fraud, mortgage payoff fraud, and seller proceeds theft. Mortgage payoff fraud, in which criminals intercept or manipulate payoff instructions and redirect funds to fraudulent accounts, was identified as the most damaging category.

The company reported that it verified more than 1.48 million wire transfers in 2025 and blocked more than 1,000 transactions flagged as potential fraud, preventing an estimated $283 million in losses.

Against that backdrop, ICE is positioning Fraud Monitor as a way to help lenders strengthen risk management while improving operational efficiency.

The platform incorporates configurable fraud risk scoring and ongoing monitoring capabilities that allow lenders to tailor workflows based on internal compliance and risk-management policies. ICE said lenders can configure exception-based automation that clears conditions and updates loan files within Encompass, reducing manual intervention and helping underwriters focus attention on higher-risk files.

Fraud Monitor draws data from ICE SiteXPro property records, credit and employment validation sources, exclusionary lists, watchlists, and third-party fraud and verification providers. The company said the combination gives lenders a broader view of potential risk indicators throughout the underwriting process.

Underwriters can review individual fraud categories within the dashboard and drill down into supporting reports and source documentation without leaving the Encompass environment. ICE said the platform also maintains a complete audit trail through automated recordkeeping, user-level permissions, time-stamped condition clearances, and compliance-ready reporting.

ICE said Fraud Monitor is available through the Encompass platform and is designed to help lenders investigate potential fraud risks more efficiently while keeping loans moving through the underwriting pipeline.

 

*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.

About the author
Managing Editor
Czarinna Andres leads editorial coverage for NMP, focusing on the trends, policies, and business strategies shaping today’s mortgage and housing finance landscape. She brings a background in journalism and media, with experience…
Published
Jun 01, 2026
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