Ellie Mae's ePASS Network Transmits Record 8,000 Mortgage
Electronic transaction network helps save the environment, digitizing the transmission of approximately 250 million sheets of paper in 2006
Dublin, CA—February 22, 2007—Ellie Mae, an award-winning provider of innovative software and services for the mortgage industry, has experienced record usage of the ePASS Network, the mortgage industry's most-widely used online business transaction platform. On the average workday in January 2007, the ePASS Network was used to electronically transmit data on over 40,000 mortgage loans, and reached a peak of 8,000 loans transmitted in just one hour. One third of the nation's $3 trillion in mortgage loans go through the ePASS Network, which virtually eliminates the need for the 500 pages of printed documentation that normally constitute each mortgage loan file.
The ePASS Network is the mortgage industry's electronic superhighway and functions as a vehicle for transmitting critical electronic data to and from mortgage originators, lenders and other ancillary mortgage service providers-saving significant time and effort for everyone, and millions of pages of paper each year. "Rather than taking a loan application by hand and faxing it into the lender, then relying on faxes, overnight delivery and couriers to deliver information to and from service providers like appraisers, title companies and insurance companies, ePASS Network users can now electronically transmit all of that data, instantly and reliably, without paper," explains Sig Anderman, Ellie Mae's CEO. "In today's cooling mortgage market, that means users can produce faster turn-around times and better service for their clients, while also knowing they're doing their share for the environment."
Functioning much like Ameritrade and E-Trade but specifically tailored for the mortgage industry, the ePASS Network not only cuts down on the time to transmit data, it also increases accuracy and significantly reduces the environmental strain brought about by the excessive amounts of paper previously necessitated by manual data transmission.
By providing an electronic pathway to transmit all of the necessary documents in the mortgage loan process, Ellie Mae has automated a process once bogged down with the time-consuming and error-prone methods of manual mortgage loan applications, the collection of paperwork, and overnight delivery. Back in 1993, the average mortgage transaction took 270 days to complete compared to 90 days in 2003, explained 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," explains Anderman. "And 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."
With the mortgage market cooling down, mortgage companies are searching for new ways to compete effectively in the marketplace. The ePASS Network enables them to provide better service with its higher accuracy and quicker response times. Loan files no longer require repetitive data input, because everything is handled electronically through a unified and central database. Courier fees are also eliminated by using the system. Documents are scanned or information is entered directly into the system ensuring fewer lost documents and fewer mistakes, not to mention delivery times that are close to instantaneous. Thanks to the system's electronic processes, response times from third party providers can be cut from days and weeks to as little as minutes or hours.
"By leveraging the power of technology, there's no reason a mortgage approval can't occur much at the same speed as getting a car loan," asserts Anderman. "Think about it. You can buy a $100,000 car in a day, but it takes 30 days to purchase a condo of the same price. Consumers are demanding more efficiency, and the ePASS Network is meeting the challenge with the means for all entities in the mortgage industry to efficiently transact electronically."
Over 90 percent of the nation's 50,000 mortgage brokers use the ePASS Network every month to access the top wholesale lenders and more than 17,000 settlement service providers.
"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 Anderman. "When you consider the number of drafts produced, and drafts and copies of final documents retained by the various parties to a typical loan origination, 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 - one million trees a year - just to sustain the manual processes of the mortgage industry.
With even just portions of loans being processed electronically using ePASS, 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 CO2 that those trees absorb each year if left alive.
"Needless to say, the environmental impact is huge," said Anderman. "The ePASS Network not only creates synergy within the mortgage industry, but also saves time for the consumer, while helping to stop global warming as well."
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.
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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