Ellie Mae Releases New Study Examining the Total Economic Impact of Encompass360
Findings Show a 57% Return on Investment and an Average Benefit for Lenders of $232 per Loan
PLEASANTON, Calif. – December 13, 2012 – Ellie Mae® (NYSE: ELLI), a leading provider of enterprise level, on-demand automated solutions for the residential mortgage industry, today announced the findings from a new commissioned study conducted by Forrester Consulting on behalf of Ellie Mae on the total economic impact that lenders may realize by using the Company’s Encompass360® mortgage management software system.
Forrester Consulting’s analysis showed that a lender funding approximately $1 billion annually and using Encompass360 and Success-Based Pricing could:
- See a return on investment of 57% over three years;
- Receive total benefits of $2,679,000 over three years vs. total costs of $1,702,170;
- Break even in as short as 2.9 months on a risk-adjusted, cash-flow basis; and
- Receive an average benefit per loan of $232.
Forrester Consulting arrived at this conclusion after interviewing four existing Encompass360 clients, who were representative of the profile of the Company’s user base, and then developing a composite company to illustrate quantifiable costs and benefits.
The research company then evaluated the benefits, such as improved compliance and increased staff efficiency, as well as the costs of using Encompass360. Cost elements included software licensing, self-hosting, internal labor and training.
This study was commissioned by the Company, and the Company identified the clients who were interviewed by Forrester Consulting. Although the Company was able to review and provide feedback on the study, Forrester Consulting maintained editorial control over the study and its findings. Forrester Consulting and the Company make no assumptions as to the potential ROI that other organizations will receive.
“All loan origination system developers talk about ROI, but we decided to quantify it,” said Jonathan Corr, chief operating officer of Ellie Mae. “While total economic impact analyses are common in the enterprise software space, this was the first one that Forrester has ever conducted in the mortgage market. The findings support what our clients have been telling us: Encompass360 and Success-Based Pricing can help deliver a quick and significant economic improvement over licensed, self-hosted models, improve productivity, back stop compliance and pay for themselves in a matter of months.”
A copy of the full study can be obtained at http://webinars.elliemae.com/content/forresterstudy2012.
About Ellie Mae
Ellie Mae, Inc. 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.
© 2012 Ellie Mae, Inc. Ellie Mae®, Encompass®, Encompass360®, DataTrac®, Ellie Mae Network™ 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.
Campbell Lewis Communications