Ellie Mae’s singular focus on automating every possible part of the mortgage origination process didn’t happen by chance — innovating technology solutions for the mortgage industry has been part of the company’s DNA since it was founded in 1997. But the broad regulatory changes of the last several years have only emphasized the importance of that focus, as Ellie Mae’s all-in-one mortgage management solution — Encompass — integrates compliance into every step.
“Think of Encompass as an all-in-one solution rather than an end-to-end solution,” said Jonas Moe, vice president of product strategy. “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.”
Ellie Mae understands the value of anticipating regulatory changes, instead of only reacting to them. 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 has been at the forefront of industry compliance changes. 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,” Moe said.
The company’s acquisition of AllRegs last year added muscle to Ellie Mae’s already formidable compliance group. 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 can stay on top of constantly changing investor and underwriting requirements better than ever.
“While compliance has taken over as a top priority at Ellie Mae, acquiring AllRegs solidifies our role as a trusted partner for all of our clients' technology and compliance needs,” said Jonathan Corr, president and COO of Ellie Mae. “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.”
A MORE EFFICIENT PROCESS
Ellie Mae’s approach to compliance is more than just adding forms and documents — it’s a fully integrated approach to data management, alerts and triggers to ensure that all of the new regulatory timing, tolerances and requirements are being met by the lender. This automated compliance means that lenders can worry more about closing the loan, rather than what fee needs to go on what line of the new disclosures.
“One of our clients lovingly refers to Encompass as a bowling lane with the bumpers down,” Corr said. “Our customers are able to quickly move through their loan process without compliance concerns getting in the way.”
And it’s not just lenders who benefit.
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.
These automated efficiencies are critical to lenders as they deal with the looming RESPA-TILA Integrated Mortgage Disclosure rule on Aug. 1.
It’s easy for lenders to get regulation fatigue, Corr said, but to meet the Aug. 1 deadline, lenders must move quickly if they haven’t already implemented changes to their process.
“We constantly hear from our clients that they are feeling beat up by all of the changing regulations. We recommend they talk with their providers right away about what type of solution they will be provided with for managing the RESPA-TILA changes,” Corr said.
Ellie Mae's all-in-one Encompass solution incorporates the new regulations, including automating the fee distribution to new disclosures, providing enhanced disclosure tracking — including why re-disclosures were sent — and giving lenders complete visibility into the impact of fee changes on their disclosures and closing timelines.
“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," Corr said.