Ellie Mae Acquires Automated Compliance Solution Provider Mavent Inc.
PLEASANTON, CA—December 16, 2009—Ellie Mae®, the software and services provider for banks, mortgage banks, credit unions and mortgage brokers, announced today it has acquired Mavent Inc., a provider of automated compliance solutions for the mortgage industry. Mavent’s technology is currently in use by many of the country’s leading investors, Fannie Mae, and over 100 lending institutions, including five of the ten largest mortgage lenders in the United States.
“Ellie Mae and Mavent share a commitment to helping mortgage institutions profitably grow their businesses while cost-effectively managing regulatory and secondary market risks,” said Louis Pizante, chief executive officer for Mavent. “New and particularly complex regulation is impacting all facets of the mortgage production chain, making sophisticated and integrated compliance solutions a business requirement. Joining Ellie Mae will better position Mavent to help mortgage businesses of all types navigate the dramatic regulatory and market changes ahead.”
Mavent’s automated compliance solutions will be available as an integrated service for users of Ellie Mae’s Encompass360™ Mortgage Management System to help ensure that all loans originated by Encompass users are compliant with all applicable rules and regulations. All current Mavent business relationships will stay intact, including the strategic relationship and distribution agreement with QuestSoft, the mortgage compliance software and service provider that offers Mavent’s solutions to about 1,500 mid-market companies. Ellie Mae plans to retain Mavent personnel handling operations, product, legal and development. The company will continue to be based in Irvine, California.
“This is an important addition to the suite of services we offer Encompass customers,” said Sig Anderman, chief executive officer of Ellie Mae. “More than ever before, compliance is critical. There is no room for error, and the exposure for everyone involved in the mortgage origination process is significant. Mavent is an excellent solution for our customers. With the upcoming changes to RESPA, the new HUD-1 and GFE, and other new regulations, compliance will be even more of a challenge for originators, lenders and investors. The integration of Mavent solutions into Encompass360 will make it easy for our customers to cost-effectively assure themselves and investors of compliance throughout the loan process.”
Mavent was founded in 2000 and has performed over 28 million loan reviews. Its patented automated compliance engines take less than five seconds to analyze electronic mortgage loan data to determine compliance with over 330 federal and state consumer protection laws, including truth-in-lending, predatory lending laws, usury, fee limits, prepayment penalty restrictions, licensing and both Fannie Mae and Freddie Mac predatory lending requirements.
“We’re seeing so many changes in regulations right now, we believe there’s no way to keep up with them using manual processes or by just sampling a small percentage of the loans being originated,” adds Anderman. “Mavent technology lets lenders check every loan for compliance, without slowing down the process. It offers a reliable and cost-effective way for lenders to protect themselves against the significant liability that may be incurred from a single compliance oversight. It felt natural to us to invest in a company that excelled in this arena, and to integrate that technology into Encompass360.”
About Ellie Mae
Ellie Mae provides enterprise mortgage origination solutions for mortgage bankers, mortgage brokers, community banks, credit unions and other mortgage lenders. The company's offerings include the Encompass® and Encompass360™ Mortgage Management Solutions, Encompass CenterWise™ websites and electronic document management services, and Encompass Closer document preparation services. Ellie Mae also hosts the Ellie Mae Network that allows mortgage professionals to easily and securely conduct electronic business transactions with the lenders and settlement service providers they work with to process and fund loans. Ellie Mae was founded in 1998 and is based in Pleasanton, California. To learn more about Ellie Mae, visit www.EllieMae.com or call 877.355.4362.
About Mavent Inc.
Founded in 2000, Mavent is a leading provider of automated compliance solutions for the mortgage industry. Mavent's patented automated compliance engines accurately review mortgage loan data within five seconds for compliance against over 330 consumer protection laws including: truth-in-lending, predatory lending laws, usury, fee limits, prepayment penalty restrictions, licensing and both Fannie Mae and Freddie Mac predatory lending requirements. Mavent’s compliance engines are maintained by its experienced team of mortgage attorneys in collaboration with nationally-recognized law firms that specialize in consumer credit.
© 2009 Ellie Mae, Inc. All rights reserved. Ellie Mae, Encompass, and Ellie Mae Network (patent Nos. 7,444,302 and 7,472,089) are registered trademarks and Encompass360, Encompass CenterWise and Encompass Closer are trademarks of Ellie Mae, Inc. in the United States.