A giant in the world of loan origination systems is touting a study that identified hundreds of dollars in per-loan benefits from its offerings. While a few LOS providers integrated with other systems, several announced that lenders have made recent investments in their technology. One LOS service provider has ventured into servicing technology.
On Dec. 13, Ellie Mae shared results from a commissioned study, conducted by Forrester Consulting, that analyzed the potential financial impact for lenders using Encompass360, the company’s mortgage management software. Forrester concluded lenders, who provided around $1 billion in loans annually, could see an average $232 benefit per loan and realize a 57 percent return on investment over three years. Forrester further identified these beneficial lenders as Encompass360 users on Ellie Mae’s success-based pricing plan, a pay-per-loans-closed payment structure.
“All loan origination system developers talk about ROI, but we decided to quantify it,” Ellie Mae President and Chief Operating Officer Jonathan Corr said in the company’s press release. “The findings support what our clients have been telling us: Encompass360 and Success-Based Pricing can help deliver a quick and significant economic improvement over license, self-hosted models, improve productivity, back stop compliance and pay for themselves in a matter of months.”
In other news about Ellie Mae, which is a Mortgage Daily advertiser, Tustin, Calif.-based New American Funding signed on as a new Encompass360 client. New American also selected Ellie Mae’s Encompass Compliance Service, according to the company’s Feb. 27 announcement.
Elsewhere, Calyx Software, another Mortgage Daily client, gave its Point users expanded access to service providers through updates to the Calyx Network. The company, headquartered in Dallas, added the American Coast Title-Services menu item in December, and the Essent Guaranty Inc.-interfaces menu item in March.
In other LOS news, three companies lauded technology alliances with other products, which offered expanded capabilities.
Genworth U.S. Mortgage Insurance recently finished an electronic interfaces integration with Ellie Mae’s Encompass360 and Lender Processing Services’ PCLender LOS. Heralded on Feb. 13, integration with these providers gives lenders direct access to Genworth’s insurance rate quotes and commitments ordering without exiting their current LOS.
Web-based valuation management software provider Global DMS integrated its eTrac enterprise platform with MortgageFlex’s LoanQuest LOS, according to a March 5 press release. Touted as a bi-directional integration, this partnership gives LoanQuest users the ability to manage the entire appraisal process and automatically submit completed, compliant appraisal files to the Uniform Collateral Data Portal.
On March 18, Blueberry Systems LLC highlighted integration of its RELAY LOS with Axacore’s electronic document management enterprise and fax solutions. As a result, Blueberry said RELAY users have the ability to consistently automate document flow to various recipients, which can reduce costs and improve loan closing processes.
In final LOS-related activity, one financial institution invested in a servicing system while several lenders acquired LOS platforms from only two industry providers.
Sub-servicing specialist BSI Financial Services replaced its banking system with FiServ Inc.’s LoanServ LOS, according to a Dec. 11 Fiserv statement. With this investment, Fiserv said BSI can provide clients with enhanced capabilities and services and automate several manual procedures.
In March, Mortgage Cadence LLC announced three new clients–Langley Federal Credit Union, Eli Lilly Federal Credit Union and First Federal Bank of Florida. Langley and Eli Lilly elected to use cloud-based Symphony, one of Mortgage Cadence’s enterprise lending systems. First Federal chose web-based Orchestrator, Mortgage Cadence’s other lending platform.
LendingQB announced, in December, the successful use of its LOS by Ohio-based client Consumers National Bank, an institution that elected for technology implementation before launching its mortgage business.
On Feb. 26, LendingQB headlined another LOS implementation triumph with OGI Mortgage Bankers, a custom-configured platform customer able to launch and use the LOS within seven weeks of contract signing.
In addition to new client launches, Lending QB attended the Texas Mortgage Bankers Association Southern Secondary Market Conference, held Feb. 12 through Feb. 14. In its vendor booth, the web-based LOS provider launched its “You Configure vs. We Configure” campaign that compared differences between software-as-a-service and traditional software vendors and how the differences impacted LOS implementation success rates. Overall, traditional vendor product implementation went past due dates and cost lenders more money, LendingQB’s media release stated.
For LOS industry regular Mortgage Builder, recent news actually focused on the servicing side. On Feb. 12, the G/Serv loan servicing platform went public with its new identity, Colonnade. Mortgage Builder acquired the servicing software from former parent company, GCC Servicing Systems, and chose the name Colonnade to reflect the theme of Architect, the company’s LOS. The company also said it invested in enhancing Colonnade’s capabilities as a standalone product or a paired solution with Architect.
