Ellie Mae Pushes Loan Quality

*Ellie Mae Pushes Loan Quality*
**By Tony Garritano**

***In some cases the lender calls the shots, but some times its good for the vendor to step in an introduce advances that the lender never thought to ask for. What do I mean? For example, origination vendor Ellie Mae sent the Winter Release of its Encompass360 mortgage management solution. The release contains more than 400 updates and enhancements designed to further increase compliance, efficiency and ease of use. However, there’s one that caught my eye. Here’s the story:

****The major upgrades include:

****>> The integration of a second major investor as part of Ellie Mae’s Total Quality Loan (TQL) program, which helps instill quality throughout the loan lifecycle and expedites the sales process for correspondent lenders selling to specific investors. TQL enables lenders to quickly and consistently order the investor’s required services for fraud, compliance, valuation and verifications early in the sales process from within Encompass360, aligning with investor expectations. This can help improve relations between lenders and investors, enhance overall efficiency, reduce errors and improve loan quality.

****>> New enhancements designed to help lenders utilizing the correspondent channel. The company’s Encompass TPO WebCenter has been updated to provide additional data consistency checks and visibility that will help lenders and third-party originators (TPOs) work together more effectively. These ongoing improvements help support the growing number of correspondent lenders looking to expand their flow of acquisitions using Encompass360.

****>> Additional support for RESPA compliance, including an updated tool to enable client-driven policies for Good Faith Estimate (GFE) fee disclosures and new configurable Changed Circumstances reporting.

****>> Electronic document management enhancements, including the ability to batch export documents from one or more loan files; new document stacking capabilities that increase visibility and flexibility; additional performance improvements in document conversion and uploading; and new, flexible email templates that enable system administrators to easily develop company-wide, custom emails.

****Many of the updates address compliance changes, including to the mortgage call report, to help lenders comply with home equity line of credit (HELOC) and reverse-mortgage reporting requirements for the Nationwide Mortgage Licensing System & Registry. New disclosure tracking tools to help lenders comply with recent federal and agency requirements for appraisals, and to track borrower-received dates for eDisclosure Fulfillment packages.

****“Ellie Mae’s Encompass360 Winter Release integrates a second investor into our Total Quality Loan (TQL) offering. This program continues to gain traction among investors and our lender clients, whom are both looking to improve loan quality from origination through delivery,” said Jonathan Corr, chief operating officer of Ellie Mae. “The broad array of enhancements in the Winter Release will help our clients take advantage of new opportunities being created within the correspondent lending market and continue to strengthen their automated compliance and reporting efforts.”

The update of TQL to include more investors going forward is a huge advance. LOS systems should do their part to enforce loan quality in my view.

Tony Garritano

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