PLEASANTON, Calif.--(BUSINESS WIRE)--
Ellie Mae® (ELLI), a leading provider of enterprise-level, on-demand automated solutions for the residential mortgage industry, today announced the Fall Release to its Encompass360® mortgage management solution will include new Ability-to-Repay (ATR) / Qualified Mortgage (QM) solutions that will enable lenders to automatically assess QM eligibility and effectively document QM compliance to investors and regulators.
Ellie Mae’s ATR/QM Solution will provide:
- Tools to test for key ATR and QM calculations, such as total debt-to-income (DTI) and points and fees calculations, including a bona fide discount point assessment.
- Functionality for underwriters to demonstrate they have considered, verified and documented a consumer’s employment, income, assets and obligations in order to determine the consumer’s ability-to-repay.
- The ability to test the loan’s APR for safe harbor status.
- The ability to determine whether “risky” loan terms or features are present.
- Multiple reports and worksheets that can be delivered along with the loan to investors to document QM compliance.
- Alerts that identify conflicts between loan data and ATR/QM standards.
Ellie Mae’s new ATR/QM solutions provide dynamic eligibility recommendations and feedback for multiple types of QM loans: General QM; Agency/GSE QM; Small Creditor Balloon Payment QM, and Small Creditor QM.
Encompass360 users will see the assessments real-time via an online ATR/QM checklist that will change and provide alerts as elements in the loan file change. The checklist will red-flag changes that could affect QM eligibility status and safe harbor treatment and show underwriters what needs to be reviewed. The functionality also allows lenders to write their own business rules and set parameters to focus on specific types of QM originations.
Ellie Mae offers the ability to provide a number of different outputs documents that identify loan eligibility:
- An ATR/QM eligibility worksheet, complete with supporting data.
- A new Appendix Q worksheet that documents how the income was underwritten to arrive at the overall DTI calculations.
- Encompass Compliance Service™ (Mavent) reports detailing rate thresholds, fee assessments and discount points that count towards the 3% QM ceiling. (The Encompass Product and Pricing Service also provides support for discount point calculations and automatically populates loan files.)
- The Encompass eFolder which contains automated underwriting results, credit report, pay stubs, 4506T, etc. that can be exported to investors.
Correspondent loans sold to investors via Ellie Mae’s Total Quality Loan™ (TQL) program will receive an additional QM eligibility review and those results are expected to accelerate the purchase review process.
“QM will be an inflection point for our industry––as significant as Y2K or the major RESPA changes of the past,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “The challenge won’t be meeting the standards because most of what is being originated today already does, but rather it will be demonstrating QM eligibility unequivocally to investors and establishing confidence in the soundness of the systems that were used to determine eligibility.
“Encompass360 users will be able to point to the closed-loop nature of our single, system of record and the advantages that this delivers.” Corr added, “For example, all critical calculations and assessments for QM and ATR are based on loan file data and no additional keying of data entries is permitted. Likewise, with Encompass360, there is no issue of data synchronization between disparate systems, which reduces the risk of violating the points and fee threshold. Finally, there are multiple layers of compliance and eligibility reviews through our Encompass Compliance Service and TQL programs to assure confidence and increase transparency.”
Ellie Mae has also published an ATR/QM brief, “Surviving Dodd-Frank in 2014 and Beyond,” which provides an overview of the challenges posed by the new standards and explains how new functionality in Encompass360 can help mortgage originators overcome them. Download the brief at www.elliemae.com/survivingqm.
The Encompass360 Fall Release will be rolled out in early November and will be demonstrated at the 2013 Ellie Mae Encompass Experience in Las Vegas, Oct. 13 - 16, 2013.
This press release contains forward-looking statements under the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include the company’s ability to enhance the features and functionality of the Encompass360 software expected to be included in the Fall Release, the timing and availability of the Fall Release and the quality and reliability of the Fall Release. Additional risks and uncertainties related to the company’s business are discussed in the company’s Securities and Exchange Commission filings, including but not limited to the Company's Annual Report for the year ended December 31, 2012 and most recent Quarterly Report on Form 10-Q. Unless otherwise required by applicable laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Ellie Mae
Ellie Mae, Inc. (ELLI) is a leading provider of on-demand automation solutions for the mortgage industry. The Company offers an end-to-end solution, delivered using a Software-as-a-Service model that serves as the core operating system for mortgage originators and spans customer relationship management, loan origination and business management. The Company also hosts the Ellie Mae Network™ that allows Encompass® users to electronically conduct business transactions with the lenders and settlement service providers they work with to process and fund loans. The Company’s offerings include the Encompass, Encompass360® and DataTrac®mortgage management software systems.
Ellie Mae was founded in 1997 and is based in Pleasanton, California. To learn more about Ellie Mae, visit www.EllieMae.com or call 877.355.4362.
© 2013 Ellie Mae, Inc. Ellie Mae®, Encompass®, Encompass360®, DataTrac®, Ellie Mae Network™, Ellie Mae Total Quality Loan™ Program and the Ellie Mae logo are registered trademarks or trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.