Ellie Mae ® (NYSE: ELLI), a leading provider of enterprise-level, on-demand automated solutions for the residential mortgage industry, today announced the Fall Release of its Encompass ® mortgage management solution. The Encompass Fall Release delivers the Company’s comprehensive approach to Ability-to-Repay (ATR) and Qualified Mortgage (QM) compliance, as well as new enhancements for multi-channel expansion, automation for Veterans Administration (VA) lending, secondary marketing and product and pricing enhancements and added visibility and communications between users and their third-party originators.
Major features include:
- A comprehensive ATR/QM Solution: This solution enables lenders to automatically assess QM eligibility and effectively document QM compliance to investors and regulators. It provides 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. Underwriters can use the functionality to demonstrate that 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 ATR/QM solution:
- Tests APR for safe harbor status and identifies “risky” loan terms or features and provides alerts on conflicts between loan data and ATR/QM standards.
- Includes details around eligibility for non-standard to standard refinances and Appendix Q to document how DTI ratio is determined.
- Provides 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.
- Generates multiple reports and worksheets complete with supporting data that can be delivered along with the loan to investors to document QM compliance.
- Compliance Updates: In addition to the ATR/QM solution, other major compliance updates include new Higher Price Mortgage Loan (HPML) input forms, disclosures for ECOA and HPML Right to Receive Copy of Appraisal, the Homeownership Counseling Acknowledgement and updates for New York CEMA loans.
- Multi-channel Configurable Workflow: Designed to support lenders as they expand into new channels, the release delivers workflow configuration options based on loan channel (retail, correspondent, wholesale, broker), loan type and other loan criteria to enable workflow that easily supports lenders’ customized business processes. This, in turn, helps remove redundant steps, permits exception-based reviews and increases productivity. Custom milestones, a library of milestone templates and milestone date management options are all part of the enhancement, which allow for more flexible, configurable workflows across channels.
- VA Management: Similar to existing FHA and USDA offerings in Encompass, VA Management functionality centralizes the capture of VA-related loan data while managing and facilitating VA loan originations. A multi-tab screen delivers quick access to basic information, qualification with links to government guidelines, tracking of loan processing and input and output forms required for VA loans to drive automation and efficiency in the VA loan process.
- Third-Party Originator (TPO) Portal: The Encompass TPO WebCenter™ expands its visibility and communication options for lenders and their TPOs. These enhancements include visibility into fees, email communication options, links to investor guidelines and added reporting capabilities.
- Secondary Marketing and Product and Pricing: Encompass Product and Pricing Service™ updates include ATR/QM support for discount point calculations and convenient links to investor guidelines. Secondary Marketing improvements include data revisions and new fields to support ULDD Phase 2 requirements for Freddie Mac loans that take effect in March 2014; secondary lock tool streamlined workflow changes to help users better evaluate hedging performance; and interim servicing improvements.
“Our ATR/QM solution is definitely the ‘main-attraction’ within the Fall Release,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “We believe it is a comprehensive and seamless QM solution and a tribute to our compliance team’s insight and expertise to have this ready well-ahead of the January 2014 deadline. Assuring that our clients––and their more than 90,000 users––are compliance-ready for QM has been a priority for Ellie Mae. As compliance continues to be a top priority, this release, and the enhancements in the pipeline for early 2014, will also help clients expand their origination channels to help them adapt to the market shift from refinance to purchase.”