A lot of time we hear horror stories about how lenders hate their LOS. However, it’s important not to generalize. Some lenders are very happy with their existing systems. For example, Denali Alaskan Federal Credit Union, one of Alaska’s oldest credit unions, is very satisfied with the systems workflow and ease of use of Encompass, Ellie Mae’s mortgage management solution. The credit union has also achieved a higher completion rate of online mortgage applications since implementing Encompass last year. Here’s what happened:
Founded in 1948 and based in Anchorage, Alaska, Denali Alaskan Federal Credit Union serves more than 60,000 current and former Alaskans with offices in Anchorage, Eagle River, Fairbanks, Kenai, Juneau, Wasilla and most recently, Kent, Washington. The third largest credit union in Alaska and a pioneer in online banking, the credit union sells $80 million in mortgages per year with an average loan size of $250,000.
According to company officials, Denali Alaskan began looking for a new mortgage platform in October 2012 after growing concerns about its ability to stay compliant with new mortgage industry regulations. The credit union selected Ellie Mae’s Encompass after a lengthy search in March 2013 and implemented the all-in-one mortgage management solution in January 2014.
“Compliance is a growing issue not just for us, but for all credit unions,” said Jim Picard, CMB and vice president, Home Loans of Denali Alaskan Federal Credit Union. “Our correspondent investors are very stringent when it comes to clean loan files. Since we moved to Encompass, we have had no repurchases or buybacks. Ellie Mae’s focus on compliance allows us sleep well at night.”
From January 2014-March 2015 Denali Alaskan saw a 58 percent increase in the rate of completed online mortgage applications submitted by borrowers. Encompass also helped Denali Alaskan transform its mortgage business into a paperless operation, allowing more efficient work flow in origination, processing, underwriting, closing, shipping and quality control.
“Rather than grabbing paper files and standing at the copier for an hour, we are taking files right out of Encompass and moving them anywhere they need to go electronically,” Picard said. “Our old file room has an increasing number of empty shelves. The space will eventually be converted into an additional loan origination office.”
“All lenders are concerned about compliance, including credit unions, and many of them are looking to Ellie Mae for answers,” said Jonathan Corr, president and CEO of Ellie Mae. “In an era of ever-increasing regulations and tighter investor guidelines, including new RESPA-TILA changes coming this year, it’s reassuring to know that no other mortgage technology provider has invested as many resources as we have to keep credit unions safe while saving them money.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.