Mortgage software firm Ellie Mae added another new product to its lineup this week with its acquisition of compliance software firm Mavent. Pleasanton, Calif.-based Ellie Mae is the developer of the Encompass360 mortgage origination software and ePass, a product that connects third-party software to Encompass360, among other products. Ellie Mae chief strategy officer Jonathan Corr said Encompass360 already has a number of compliance checks built into it, but said acquiring Mavent would help the software developer address predatory lending protection and changes to the myriad mortgage regulations on both the state and federal level. “For folks to cost effectively maintain compliance and have control of their operations, it is becoming, from a people standpoint, prohibitively costly for that customer base,” Corr told HousingWire. “We saw a great opportunity to bring capability to our customer base to help them really address what’s happening now and what’s continuing to happen with all the regulatory changes.” Mavent will continue to operate from its Irvine, Calif. facility as a subsidiary within the Ellie Mae structure. The automated compliance software company’s existing business relationships will stay in place, including a distribution agreement with mortgage compliance software and service provider QuestSoft, which offers Mavent’s software to about 1,500 mid-market companies. Previously, Mavent was not available on ePass, and Corr said Ellie Mae’s plans for the acquisition includes an enhanced integration. As for now, the unit will retain its name, but Corr didn’t rule out a re-branding in the future. “It will be integrated into our network, but it’ll be a very integrated offering as part of Encompass, built in through the workflow and compliance running as a natural extension of the process,” Corr said. Corr said Ellie Mae believes integrated compliance within mortgage origination software is what customers will grow to expect from software developers. “It will be a greater value proposition for Encompass customers,” he said. The acquisition is just the latest for Ellie Mae. In October 2008, Ellie Mae acquired Online Documents, Inc. from Stewart Lender Services. The assets it acquired in that deal have evolved into Ellie Mae Docs, which competes with 10 other document service providers on ePass and sparked a disagreement that led to a lawsuit between Ellie Mae and document provider DocMagic. Third-party compliance automation software offerings available through ePass include Verisk Analytics’ Interthinx, Wolters Kluwer’s PCI and Compliancy, which will remain on ePass, Corr said. “We’ve already talked to all these companies they know we’re adding a value-add service. Our intention is to maintain them as partners on the network,” he said. “It’s really no different than we still have 10 other doc providers on the ePass network, even though we have Ellie Mae Docs.” Corr said the other compliance software companies have not expressed concerns about the new competition. Interthinx responded to HousingWire’s request for comment on the Mavent acquisition with a prepared statement. “Interthinx has enjoyed a long and mutually beneficial relationship with Ellie Mae,” said Interthinx senior vice president Michael Zwerner. “We have no reason to believe that will change. We wish the company the best of luck with its new acquisition.” Write to Austin Kilgore.