Case Study: Waterstone Mortgage Corporation achieves improved loan quality and reduced defects with ICE Mortgage Technology's Encompass platform

Waterstone Mortgage Improves Loan Quality During Time of Rapid Growth and Regulatory Change

Waterstone Mortgage, a Pewaukee, Wisconsin–based lender originating about $2.5B annually and operating nationally, faced the challenge of maintaining high loan quality and reducing defects amid rapid growth and shifting regulations. With loan quality a company-wide responsibility, leadership needed scalable controls and visibility to keep compliance and operational standards high as volume and complexity increased.

Waterstone addressed this by building on its long-term Encompass LOS partnership, using the platform’s SDK and tools plus custom apps (like Connect Web), disclosure and lock comparison screens, and Encompass Docs and Compliance Service to automate checks, surface issues, and integrate loan data across systems. The results: substantially fewer defects (only 10 self-reported loans in 2016 with three repurchases and one indemnification), critical defects at or below 3%, reships to investors about 1%, faster closings (average time-to-close fell to 33 days and reached 30 days), and measurable gains in compliance, productivity, and overall loan quality.

Waterstone Mortgage Corporation

Eric Egenhoefer

President & CEO