Mortgage Daily

Published On: April 1, 2014

On the last day of last month, Ellie Mae Inc.’s services went down and have yet to be fully restored. The technology service provider is utilizing social media to communicate information to its customer base.

Complaints began rolling in on the Pleasanton, Calif., company’s Facebook page late yesterday and have continued since.

“As of this writing you are not functional,” one user wrote. “Not really sure how a whole day has gone by and Encompass does not have a clear understanding of what the issue is or how to resolve,” another one said.

Ellie made its own Facebook posting indicating that its technical team was working on restoring normal operation for Encompass services and Ellie Mae Network Services.

In addition, it noted that it was simultaneously looking at options for alternative solutions.

“At this time we do not have an estimated time when services will be restored,” the posting said.

A subsequent message from Ellie Mae President and Chief Operating Officer Jonathan Corr acknowledged the impact the downtime was having on lenders’ month and quarter ends.

Corr offered his sincere apologies.

“Please know that the entire Ellie Mae team is working hard to resolve the issues,” Corr stated. “We will continue to provide periodic update reports to you as well as provide more details on the cause of the issues and steps taken to resolve. We are also updating the Ellie Mae Status Center regularly with real-time updates.”

An Encompass Incident Alert update was made Tuesday at 12 p.m. Pacific.

“Ellie Mae’s technical operations team continues to troubleshoot to restore access to all impacted Encompass services,” the update stated. “Services from within Encompass loans are functional, however, may continue to be sporadic for some clients.”

A call to the technical assistance line at Ellie Mae, a Mortgage Daily advertiser, ended at a recording that said they are working “to restore services to your business.”

Ellie issued a statement late Tuesday after this story was published indicating that it has detected unusually high demand on its servers. The activity is “consistent with an external malicious attack characteristic of a distributed denial of service.”

Actions have reportedly been taken to isolate the suspicious activity and to prevent unwarranted access in the future.

However, Ellie said there is no evidence of any data breach and it has confirmed that client data and personal borrower data remain secure.

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