Marketwise Advisors, LLC Releases Independent Study of Financial Benefit of Ellie Mae's Encompass Investor Connect
Study concludes lenders save nearly $50 per loan and increase funding capacity when delivering loans to investors through Encompass
PLEASANTON, Calif. – Sept. 14, 2020 – Ellie Mae®, the leading cloud-based loan origination platform provider for the mortgage industry and now a part of Intercontinental Exchange Inc. (NYSE: ICE), today announced that MarketWise Advisors, LLC has released a new study of Encompass Investor Connect®. The independent study analyzed the financial benefit of the Investor Connect system to system loan delivery – integrated loan delivery from Ellie Mae’s Encompass Digital Lending Platform™ to the investor’s system of record.
Investor Connect is a key feature within Encompass® that is available at no additional cost to lenders, and which allows lenders to deliver pre-validated data and documents from Encompass to the investor’s system of record – without logging into another portal. Using this secure system-to-system workflow, lenders are seeing time savings by eliminating manual entry, centralizing tasks, packaging data and docs and delivering from within Encompass. Investor Connect benefits a large population of the mortgage industry with direct integration to 13 of the top 20 correspondent investors, making available more than 70 percent of the aggregator market.
As a result of a recent study, MarketWise Advisors, LLC found an average financial benefit of $48.85 per loan. Approximately half of the financial benefit stemmed from operational benefits, including an average of 39 minutes saved per loan, by reducing the time spent packaging and delivering loans, checking for missing data, and manual entry. Additional savings were achieved through sales and funding acceleration, with lenders averaging one day of time compression, a 40 percent increase in first pass sales with no conditions.
Other key findings from the study included:
- Better execution, quality and improved seller experience reported by lenders
- Fewer conditions which led to substantial time savings including 1-day faster for purchases
- Lenders with warehouse lines and hedging costs saw additional financial benefits not included in the nearly $50 in savings
- Like lenders, investors also experienced higher first pass rates and lower purchase operations costs for loans delivered through Investor Connect
“At a time when lenders are experiencing record volumes tied to historic low interest rates, lenders are busier than ever. As such, it is imperative to leverage technology solutions that improve efficiency, reduce operational costs and offer higher quality loans,” said Jordan Brown, CEO, MarketWise Advisors, LLC. “This study showed that lenders using Ellie Mae’s Encompass Investor Connect experienced substantial decreases in transactional friction and costs, providing over $48 in savings per loan on average, an average reduction in time per loan of close to 40 minutes and a substantial increase in first pass sales with no conditions. Because of the improved loan quality and speed of delivery, lenders are able to sell loans faster and open up capacity for additional lending.”
“Since the launch of Encompass Investor Connect, we have established integrations with 13 of the top 20 largest correspondent investors, making available more than 70 percent of the aggregator market in the United States,” said Jonathan Corr, President and CEO of Ellie Mae. “Through the use of solutions like Investor Connect, we are furthering our mission to automate everything automatable for the residential mortgage industry while helping originators and purchasers achieve a true digital mortgage. By taking advantage of Ellie Mae mortgage technology, lenders are experiencing substantial savings, time reductions and process improvements that help them drive their business forward.”
“We continue to see significant momentum with Encompass Investor Connect as we further our mission to help originators and purchasers achieve a true end-to-end digital mortgage,” said Parvesh Sahi, Senior Vice President of business development, Ellie Mae. “With the majority of the largest correspondent investors as our partners, Ellie Mae’s tech is being leveraged to evolve and digitize the liquidity of the mortgage asset. The continuous improvements we are making to loan delivery and liquidity improves the experience for everyone in the mortgage origination chain — lenders save time and money by automating processes and investors save time and money reviewing and purchasing better quality loans faster. Near term innovation includes new features with AI and system-to-system communication to provide even greater efficiencies in the future.”
The independent survey was completed to determine the impact analysis for Investor Connect participants. The survey was deployed to all Investor Connect participants (approximately 350 lenders) that submitted material volume through Investor Connect. The data provides rich insight across lender sizes, geographies, and product mixes.
For more information about the Investor Connect ROI study, visit:
About Ellie Mae
Ellie Mae is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae’s technology solutions enable lenders to originate more loans, lower origination costs, and reduce the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Visit EllieMae.com or call (877) 355-4362 to learn more.
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