Mortgage software provider Ellie Mae reported a net loss of $40,000 for the second quarter, down from a $1.3 million loss one year ago. The firm reported a 17.4% increase in revenues to $11.5 million. Its software and services department saw revenues increase 21.6% to $9.2 million. Ellie Mae said the number of lenders actively using its Encompass suite of products increased 20% during the quarter to more than 41,000 firms. "We continue to see strong demand for our comprehensive offering of automated solutions that address the marketplace need for increased quality and efficiencies in mortgage origination," said Ellie Mae CEO Sig Anderman. Sill, Anderman said mortgage volumes declined 20% from one year ago as the industry adapts to a new regulatory environment. The government-sponsored enterprises and the Mortgage Bankers Association expect lower originations for the year. Ellie Mae expects net income for all of 2011 to land somewhere between $2.1 million and $3.1 million. Anderman said, however, effects from recent economic challenges are going to be hard to anticipate, specifically the ongoing debt ceiling debates. "It is difficult to predict the impact of the debt crisis on the economy, interest rates or on the mortgage industry," Anderman said. Write to Jon Prior. Follow him on Twitter @JonAPrior.