Ellie Mae: Focusing on compliance with automated efficiencies


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Ellie Mae’s fully integrated approach to compliance means that both lenders and investors can be confident that loans meet the new regulatory timing, tolerances and requirements — a must with the coming RESPA-TILA changes.

“Our long-time clients, those who’ve been through the regulatory twists and turns with us, don’t have the pains others do. It’s not just about updating forms. We spend a great deal of time educating our clients about the regulatory and technology changes that are happening, and then we provide solutions that re-imagine and automate the process so that lenders can keep their businesses running smoothly, with no interruptions,” said Jonathan Corr, president and CEO of Ellie Mae.

Encompass, Ellie Mae’s all-in-one mortgage management solution, incorporates all of the new regulations — including automating the fee distribution to new disclosures, providing enhanced disclosure tracking and even explaining why re-disclosures were sent. This gives lenders complete visibility into the impact of fee changes on their disclosures and closing timelines.

“Ellie Mae has been at the forefront of industry compliance changes,” said Jonas Moe, vice president of product strategy. “Our team of 30 legal and compliance experts works tirelessly to ensure that all of our systems remain up to date so our clients stay compliant with the newest regulations.”

And compliance in every step of the origination process means loans are ready for the secondary market as well. Ellie Mae’s Total Quality Loan (TQL) program, which allows lenders to improve loan data quality by automating key processes and applying quality checks throughout the mortgage lifecycle, also assures investors they are buying quality loans. That’s because the program lets lenders know precisely which steps to follow for each specific investor, thereby reducing errors and repurchase requests.

“Our Total Quality Loan program is unmatched by other LOS providers. This program allows lenders to order key services (i.e. flood, fraud, compliance), view and manage results, and understand overall trends. TQL also is used by a growing number of investors, allowing the services to be ordered a single time (by the lender) and accepted by the investor as tamper-proof. This assists in a smoother, shorter purchase time,” Corr said.

Ellie Mae’s experience lets the company anticipate regulatory changes and innovate technology solutions well ahead of schedule for its clients. Several company representatives sit on industry and regulatory panels and are part of the process when many new rules and regulations are formed. Ellie Mae is closely involved with the Mortgage Bankers Association, the Consumer Financial Protection Bureau and the Mortgage Industry Standards Maintenance Organization.

“Ellie Mae’s approach is more than just adding forms and documents,” Moe said.  “Encompass is an all-in-one solution rather than an end-to-end solution. Many other LOS solutions aren’t true all-in-one systems. Rather, they bolt on third-party software to create an end-to-end process.

“Encompass, by comparison, takes it a step further and has all of the necessary components under one roof, so compliance assurance spans the entire loan process. Compliance is natively built into our solutions by way of alerts, reports, and disclosure management,” Moe said.

In a move that bolstered its already impressive compliance profile, Ellie Mae bought AllRegs last year. AllRegs information management solutions are used by more than 3,000 companies representing every facet of mortgage banking, and with AllRegs legal professionals monitoring every state legislature, Ellie Mae clients are able to stay on top of constantly changing investor and underwriting requirements.

“While compliance is certainly a top priority at Ellie Mae, acquiring AllRegs helps solidify our role as a trusted partner for all of our clients’ technology and compliance needs,” Corr said. “Now more than ever, the mortgage industry is in need of an all-in-one provider that helps lenders achieve compliance while producing quality loans with great efficiency.”

Ellie Mae has been holding monthly webinars on RESPA-TILA that are open to anyone — not just the company’s clients — to educate the market about what is changing and how to adapt.

“Consumer education is extremely important, and if we peel back the layers of all of the changes from the CFPB, specifically the new disclosure, these are a good change for the market.

 “Any time we introduce more transparency into the process for the borrowers, this is a good thing. We are working hard with our lenders to make it easy on them to comply, so they can focus on providing a better borrower experience,” Corr said.


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