Ellie Mae, the California-based software company that processes over 2 million mortgages in the US per year, has always found innovative ways to stay competitive in a crowded industry.
Though the company had a strong Q1, outlooks were dimmed by lower revenue outlooks for the remainder of the year. The company succeeded in exceeding Gross Profit estimates by 9.5% and management estimates a FY18 total revenue of $500 million. But reports indicate a likely slump later in the year due to pull forward of the industry forecast for loan volume amid a still challenging environment. Heightened attrition, reduced broker headcount and industry consolidation are also forecast.
But a little adversity has never stopped Ellie Mae before. Amidst the swirl, the corporation is touting two new suites of software tools, Encompass Data Connect and Encompass Investor Connect, to help lenders and investors navigate the complicated mortgage industry.
Both software packages will be available on Encompass, Ellie Mae’s proprietary mortgage solution platform.
Encompass360, the company’s proprietary mortgage-management system, helps underwriters comply with regulations. Features include debt-to-income calculators, discount assessment, and tools for assessing the quality of a loan.
Encompass Investor Connect will be used to help secure workflows between lenders and investors. The suite of tools will safeguard accurate, compliant and tamper-proof loan data to enhance the digital mortgage experience. The goal is to improve pricing tiers and purchase times and enhance efficiency, accuracy and compliance.
Ellie Mae has been recognized in the past for forging a new path in the industry. Ellie Mae has won the Lenders’ Choice Mortgage Technology Award, Mortgage Technology Magazine’s 2009 Release of the Year Award and the Top 50 Service Provider in 2007, 2008 and 2009, among many other accolades.
But business has not always been so easy. In 2009, the company was accused by DocMagic, a document management system, of violating antitrust laws after an agreement between the two organizations had expired. The case was settled out of court in 2012 for an undisclosed sum.
The company has had a string of acquisitions since being founded in 1997. Among the firms that have been acquired are MortgageCEO, ARG Interactive and Velocify.