Ellie Mae Promotes Environmentally-Friendly Mortgage Solutions
Over 1 million trees per year can be saved
DUBLIN, CA—June 5, 2007—Ellie Mae, an award-winning provider of innovative software and services for the mortgage industry, is generating awareness of the importance of leveraging earth-friendly solutions in the mortgage industry.
"A rarely discussed challenge in the mortgage industry is the amount of paper that it takes to originate, process and close a loan manually," states Sig Anderman, CEO and founder of Ellie Mae. "When you consider the number of drafts produced, and the copies of final documents retained by the various parties involved in most loan originations, a typical loan consumes close to a full ream--500 sheets--of paper. With 15 million loans processed every year, you're looking at 15 million reams of paper, or one million trees per year, just to sustain the manual processes of the mortgage industry."
According to the Pew Center on Global Climate Change, a nonprofit organization that provides information and solutions in an effort to address global climate change, deforestation is one of the root causes of global warming. Live plants help slow the progression of global warming by transforming carbon dioxide and greenhouse gases, both of which are being emitted in mass quantities by businesses across the globe. By transitioning to paperless processes, businesses can help preserve the trees that would otherwise be sacrificed to make paper.
Ellie Mae's ePASS Network, the mortgage industry's most-used Internet-based transaction platform, is paving the way for users to bypass the use of the industry's customary 500-page loan files altogether in lieu of a quick, cost-effective, and environmentally-conscious paperless solution. Even with only portions of total loan packages being processed electronically using the ePASS Network, Ellie Mae estimates that the 8.5 million transactions handled through ePASS in 2006 reduced paper usage by half a million reams, representing 30,000 trees saved.
According to a University of Michigan study, a half million reams of paper reduced or recycled can also save 380,000 gallons of oil, three thousand cubic yards of landfill, 4,100,000 kilowatts of energy and 7,000,000 gallons of water, not to mention the 250,000 pounds of carbon dioxide that those trees absorb each year if left alive.
Ellie Mae's ePASS Network utilizes the power of the Internet to transmit loan files and documents between the numerous disparate parties involved in the process of originating, closing and servicing mortgage loans. Because the transmitted data is electronic, users are no longer tied to the excessive use of paper involved in mailing, faxing and otherwise manually delivering information.
Currently, 25,000 mortgage companies, representing one-third of all residential mortgage production nationwide, use Ellie Mae's ePASS Network. The comprehensive capabilities offered by the platform allow users to electronically submit files, order services and communicate with wholesale lenders, Fannie Mae and Freddie Mac, and thousands of settlement service providers.
In addition to the ecological benefits, users of the ePASS Network also find that the system helps businesses save time and money by utilizing the ePASS Network's automated processes to replace the time-consuming and error-prone tasks of manually inputting data, collecting paperwork, and using overnight deliveries.
"Back in 1993, the average mortgage transaction took 270 days to complete compared to 90 days in 2003," explains Doug Duncan, chief economist of the Mortgage Bankers Association (MBA) during his address at the MBA's National Technology in Mortgage Banking Conference & Expo in March 2006. "Today, the average loan takes approximately 30 to 45 days to complete, from the moment the application is taken to the day the loan is closed."
When asked if there is potential to further compress the process, Anderman quickly affirms, asserting that, "Thanks to technology solutions like the ePASS Network, we now believe a two-day turn-around for a mortgage loan is well within our reach."
Last October, the ePASS Network won Mortgage Technology magazine's 2006 Synergy Award, an annual distinction granted for technology initiatives and alliances that advance the cause of seamless end-to-end commerce.
"We're proud to be providing the mortgage industry with a well-rounded business solution that works on the macro and micro levels," explains Anderman. "It not only creates synergy within the mortgage industry, but also saves time for the consumer, while helping to stop global warming as well."
About Ellie Mae, Inc.
Ellie Mae, an award-winning provider of software and services for the mortgage industry, offers a comprehensive line of loan origination solutions including the company's flagship Encompass® Mortgage Automation System, as well as Contour™ The Loan Handler® and Genesis 2000®. Ellie Mae's loan origination solutions are used by over 50 percent of the nation's estimated 50,000 mortgage originators. Encompass is deployed by over half of the nation's top 250 brokerages, including seven of the top ten. Integrated in these loan origination systems is Ellie Mae's ePASS Network, the industry's most-used online transaction platform, processing over one third of the nation's $3 trillion in loans. Winner of the 2007 Mortgage Technology Synergy Award for enabling seamless end-to-end e-commerce, the ePASS Network enables mortgage companies to easily do business online with dozens of leading lenders and thousands of settlement service providers. Ellie Mae is based in Dublin, California, and can be found online at www.elliemae.com or by phone at (888) 955-9100.
Ellie Mae, Encompass, ePASS, and Genesis 2000 are registered trademarks, and Contour, Executive Websites, and Ellie Mae Docs are trademarks, of Ellie Mae, Inc. All rights reserved.
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