Self-Help Enterprises, a nationally-recognized community development organization, is receiving 40 Encompass seats from Ellie Mae Inc. to speed their loan processing.
The California non-profit — which has helped more than 50,000 low-income families build and sustain healthy homes — will now have the ability to manage its loan activities though a single mortgage transaction platform.
“Ellie Mae’s Encompass is a powerful solution for organizing and collaborating,” said Léon Romanazzi, administrative analyst at Self-Help Enterprises, in a new release.
“Previously, our loan processors were spending 6 to 8 hours to complete loan documents because they were typing them up in Word,” Romanazzi continued. “Now we have streamlined reports, we can see what’s in process and what’s scheduled for funding. As a non-profit, Ellie Mae is helping us complete more loans more quickly, which enables us to get people into their homes faster.
“We’re truly thankful for their donation to our organization.”
The Need For A Unified Mortgage Transaction Platform
The need for an all-in-one system has grown increasingly important with the introduction of the TILA-RESPA Integrated Disclosure rule (TRID) last October, a rule which includes 1,888 pages of regulatory language.
Lenders who don’t follow the TRID guidelines can find themselves facing penalties of as much as $5,000 per day for a single violation, $25,000 per day for “reckless” violations, and a whooping $1 million per day for “knowing” violations.
The enormity of such fines means that even a small error can lead to huge costs. Combine complex rules with loan packages which routinely run 500 page or more and the potential for error is significant.
Ellie Mae’s Encompass is a mortgage management solution that’s widely used throughout the industry and enables banks, credit unions and mortgage lenders to originate and fund mortgages while improving compliance, loan quality and efficiency in the process.
Ellie Mae says Encompass is an “all-in-one, fully integrated solution that covers the entire loan lifecycle and provides one system of record so lenders can close high-quality, compliant loans more efficiently, no matter what the industry or regulators do next.”
A 2014 study of the Encompass system found that it provided as much as $970 in potential savings, including $612.83 in improved asset quality and execution potential per loan and $337.31 of improved efficiencies and cost-savings potential per loan.
According to its 2015 annual report, Ellie Mae, a Mortgage Daily sponsor, has more than 135,000 active Encompass users, up 25 percent when compared with 2014. The company also reported that in 2015 it had revenues of $253.9 million, up 57 percent from $161.5 million in 2014
“We are delighted to partner with Self-Help Enterprises and to be their mortgage technology provider,” said Jonathan Corr, president and chief executive officers of Ellie Mae. “Self-Help Enterprises has a long history of serving the needs of low-income families across the San Joaquin Valley and we’re proud to support their mission and help these families achieve the American dream of homeownership.”
