MARCH 2015
Ellie Mae – The Commitment to Compliance
Compliance, particularly with RESPA-TILA looming, is almost always front of mind for anyone in the mortgage lending industry.

Starting August 1st, 2015, the process for documenting and sending disclosures is drastically changing, just four short years after the last major disclosure change. The difference this time is that the focus is truly consumer-based. Ellie Mae® appreciates that these are positive changes to help consumers become more informed. Ellie Mae also sees it as an opportunity for lenders to provide excellent customer service from the initial rate and fee conversation, all the way to the closing table.

Ellie Mae has been out in front of the RESPA-TILA changes, having been part of various panels with the CFPB, MBA and MISMO boards, sharing their insight – which is really an aggregation of the insight of their 100,000 active users – with the direct source of compliance change.
Ellie Mae’s commitment to compliance is made clear in how – and to the extent – they are updating Encompass
®. Many mortgage software providers are simply updating their forms, but Ellie Mae is taking a comprehensive, systematic approach and updating Encompass to perform in the new regulatory world.

Updating and automating aspects like fee itemization and management disclosure tracking, partner integrations and UCD datasets – as well as many others – demonstrate the extensive level of attention that makes Encompass such a trusted LOS.  

And, as Encompass is an all-in-one platform, a single system of record is created. In a world of shifting compliance requirements, hawkish regulators and eagle-eyed investors, the importance of having everything in one place, transparent and easily accessed, cannot be overstressed.

Ellie Mae’s commitment to compliance is also reflected in their dedication to education. Their online resource, Compliance Central, offers videos, presentations, reports, whitepapers, webinars and other resources. Their ongoing RESPA-TILA webinar series is recorded and is publicly available.

Ellie Mae’s industry-recognized compliance experts and legal team back up this commitment to compliance management and education. They ensure that Ellie Mae clients remain successful in an increasingly complex and controlled mortgage market. They regularly collaborate with the CFPB, GSEs and mortgage investors to analyze and interpret federal, state and local regulations to ensure Ellie Mae’s technology is properly updated so clients can automate compliance with new rules the moment they take effect.

Helmed by Angela Cheek, one of HousingWire’s 2013 Women of Influence, Ellie Mae compliance team members are frequent panelists and guests at industry events, including the MBA’s Annual, Regulatory and Technology conferences.

Everyone in the mortgage lending world needs to be committed to efficient, effective compliance management. This requires knowledge, awareness and adaptability. Smart lenders know how leverage technology to make the process better, and smart technology providers deliver comprehensive all-in-one platforms that reflect – and maximize – a true commitment to compliance.

Latest Origination Insight Report – Refi Share Rises as Time to Close Drops
Mortgage refinancing as a share of overall loan volume jumped eight percent in February to comprise 59 percent of lenders’ loan volume, according to the latest Origination Insight Report released by Ellie Mae. Meanwhile, the average time to close a refi loan fell to 36 days, the lowest level since Ellie Mae began tracking this data in August 2011.

The average interest rate for a 30-year fixed rate mortgage fell from 4.154% to 4.008%, the lowest level in two years, according to Ellie Mae’s data. The average interest rate for 30-year fixed FHA loans fell below 4% for the first time since June 2013.

“The drop in the average 30-year fixed rate in last few months has kept lenders busy with increased refinance business,” said Jonathan Corr, president and CEO of Ellie Mae. “Considering the demand, the fact that lenders are taking fewer days to close the average refi loan is very good news.”

The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass origination platform. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

The monthly Ellie Mae Origination Insight Report may be read in its entirety here
Ellie Mae Encompass Experience – Where Users Up Their Game
Ellie Mae recently concluded their annual user conference, Encompass Experience 2015, where they announced the inductees into the Ellie Mae Hall of Fame, offered powerful presentations from a range of industry leaders, and helped the over 1,700 mortgage professionals in attendance uncover more effective, efficient ways to manage RESPA-TILA and improve their business.

RESPA-TILA was the focus of a number of the Compliance Track’s breakout sessions, and, to reinforce the learning experience, Ellie Mae leveraged additional educational tools as well. One of the highlights was the RESPA-TILA Learning Lab, an interactive area specifically focused to deliver a hands-on opportunity to:
  • See how Encompass can help effectively manage RESPA-TILA compliance
  • Walk through exercises that built familiarity with Encompass’ new functionality
  • Take home educational materials, exercise books and FAQs regarding RESPA-TILA
Ellie Mae works hard to bring top talent to share their wisdom. Encompass Experience 2015 may have featured their most powerful slate yet. Speakers and session presenters included:
  • Don Tapscott, best-selling author of The Digital Economy and Radical Openness
  • Mike Cafferky, Fannie Mae’s program manager for electronic mortgages (eMortgages).
  • Brain Webster, Originations Program Manager, Mortgage Markets for the CFPB
  • Bill Cosgrove, MBA Chairman and the Owner & CEO of Union Home Mortgage
There was also a performance by comedian Jim Gaffigan, and a surprise appearance by a live Respatilasaurus.

The new inductees into the Ellie Mae Hall of Fame, an honor given each year to mortgage lenders that have distinguished themselves through their industry leadership and innovative use of Ellie Mae technologies, were announced. U.S. Olympic hockey legend Jim Craig inducted the new members. The new Hall of Fame inductees, by category, are:

Exceptional Achievement in Business Growth
  • Nationstar Mortgage
  • The Federal Savings Bank
  • PennyMac
Excellence in Compliance Automation
  • Union Home Mortgage Corp.
  • University Federal Credit Union
Exceptional Achievement in Loan Quality
  • GVC Mortgage Inc.
  • LeaderOne Financial Corporation
Outstanding Efficiency and Return on Investment (ROI)
  • Gold Star Mortgage Financial Group
  • Ryland & RMC Mortgage
  • Waterstone Mortgage Corporation
Implementation Excellence Award
  • HomeServices Lending, LLC
  • Primary Residential Mortgage, Inc.
Encompass Experience is the annual user conference for Ellie Mae clients and partners, including senior management, executives, system administrators, operations managers, loan officers and processors, compliance specialists, closers, secondary market managers and users of all experience levels. The conference highlights Ellie Mae’s commitment to their clients, and has become a powerful opportunity for Encompass users to come together to build skills, learn best practices and elevate their performance.

Escape RESPA-TILA – Time Is Running Out to Win the Trip to Hawaii
Preparing for bronto-sized burden of RESPA-TILA is stressful. Hawaii, however, is relaxing. Winning a tropical escape – a free trip to Hawaii on Ellie Mae – could still happen. It’s the Great Ellie Mae RESPA-TILA Hunt, and it involves collecting four stuffed dinosaurs. But there are a few steps to undertake, and the clock is ticking.

The process is simple. Participants must collect the four RESPA-TILA plush dinosaurs by August 7, 2015 to be entered in the drawing for the trip.

Here’s how it works: First, those interested must register here to participate.  That's how Ellie Mae knows where to send your dinosaurs.  Once registered, proceed on your hunt by completing the four steps outlined here.

If you are ready to skip right to step 4, you can request your demo of Encompass now.

Somebody’s going to Hawaii, but they need to play to win.  Register now to play.

Ellie Mae 2014 Financials – Fourth Quarter and Full Year Results
On February 12, 2015, Ellie Mae reported results for the fourth quarter and full year ended December 31, 2014. The year saw a rise in revenue and the number of active Encompass users surpass the 100,000 mark.

Fourth quarter highlights include:
  • Record revenue of $46.6 million, up 53% from $30.4 million in Q4 2013
  • Net income of $4.3 million, up 153% from $1.7 million in Q4 of 2013
  • Adjusted EBITDA of $12.8 million, up 75% to $7.3 million in Q4 2013
  • 3rd consecutive quarter with over 10,000 new SaaS Encompass seats booked
“Ellie Mae’s fourth quarter results were a tremendous finish to 2014,” said Jonathan Corr, CEO of Ellie Mae. “Revenue grew 53% over last year’s fourth quarter to a record $46.6 million. We again outperformed the overall mortgage market as we continued to grow our active user base and increased average revenue per user by 32% over last year’s fourth quarter. Our results demonstrate the upside leverage of our model as we benefited from an uptick in the volume of loan applications during the quarter.”

Full year highlights include:
  • Record revenue of $161.5 million, up 26% from $128.5 million in 2013
  • Net income of $14.8 million, up 11% from $13.3 million for 2013
  • Adjusted EBITDA of $46.0 million, up 17% from $39.4 million in 2013
  • 37,000 new SaaS Encompass® seats booked
  • 109,000 active Encompass users, up 18%
  • 85,000 active SaaS Encompass users, up 33%
“The combination of business momentum and solid execution enabled us to deliver strong results throughout 2014 as we increased revenues by 26% over last year. Against the backdrop of mortgage industry volumes that declined 38% in 2014, our performance was driven by demand for our all-in-one solution that meets lenders’ ever increasing needs for loan quality, regulatory compliance and operating efficiency,” continued Mr. Corr.

“Our successes in 2014 and our robust pipeline give us ongoing confidence in our growth strategy. We are entering 2015 well positioned to continue to grow market share and revenues. To support customers and further differentiate the company, we will continue to ramp our investment in key areas such as R&D, enterprise sales, services, technical support and data center infrastructure. These investments are reflected in our net income guidance for 2015. We are excited about the opportunity to add additional SaaS Encompass users and drive adoption of our broad array of on-demand solutions,” concluded Mr. Corr.

More information, and a look at the 2015 financial outlook, may be accessed in the press release available here.

Word on the Street – The Freedom to Focus On Performance
“The business rules that Encompass offers us really allow us to ensure data quality checks along the way through the life of the process, which is really important to us to ensure that we have a high quality product…”  – Christy Rushing, Senior Vice President, Information Technology, OnQ Financial

Learn how OnQ leverages Encompass® to ensure loan quality, and how Christy relies on the SaaS version of Encompass to free her team to focus on their core competencies as a business, instead of worrying about performance issues and updates. Watch the OnQ, and other lenders’, client testimonial videos here.

Closing the RESPA-TILA Training Gap – Ellie Mae Compliance Central
Many lenders are finding that tools and education for RESPA-TILA preparation are lacking, confusing or just hard to find. Ellie Mae® puts a concentrated effort in closing the educational gap with the tools available on their website’s resource page, Compliance Central.

There, lenders may access recordings of their six-part RESPA-TILA webinar series, as well as their recently held RESPA-TILA Integration – Policy Impacts webinar. Access all the tools at Compliance Central here, or go directly to the webinars here.

Hosted by two AllRegs® experts, Professional Services Group Manager, Joy K. Gilpin, and Vice President, Director of Compliance, Richard Triplett, RESPA-TILA Integration – Policy Impacts shined a light on the necessity of having up-to-date policies, procedures and documentation that will satisfy compliance when the RESPA-TILA takes effect on August 1, 2015.

The webinars in the six part RESPA-TILA series include:
  • RESPA-TILA: Integrated Mortgage Disclosure Rules 
  • RESPA-TILA: Delivery Timing & Tolerances
  • RESPA-TILA: The Loan Estimate – Parts 1 & 2
  • RESPA-TILA: The Closing Disclosure - Parts 1 & 2
  • RESPA-TILA: Q&A Townhall
As an additional resource, you can access a PDF of RESPA-TILA FAQ's here.

These are just a small number of the webinars Ellie Mae® hosts each year, all free to the industry and focused on helping lenders navigate compliance issues, improve efficiencies and examine emerging trends and technologies.

More information, as well as informational videos and whitepapers, are available at Ellie Mae Compliance Central.