First Data Partners with Ellie Mae to Improve Security of Lending Payments

A new partnership between Ellie Mae and First Data will make it easier for Ellie Mae customers to securely accept payment for costs related to loan origination, processing, underwriting and credit reports.

First Data will integrate with Ellie Mae’s Encompass Consumer Connect lending platform. Part of Ellie Mae’s Digital Mortgage Solution, Consumer Connect enables borrowers to apply for mortgages online, engage with loan officers, and securely eSign and upload documents. The technology provides lenders with a customized digital mortgage workflow that leverages automation to deliver a streamlined experience across functions. Ellie Mae will leverage First Data’s BluePay Gateway, part of the company’s CardConnect ISV platform, which helps companies add secure payment processing within SaaS, mobile, and POS apps.

“First Data is thrilled to deliver our fast, simple and secure payment technology to the banks, credit unions, and mortgage lending companies Ellie Mae serves,” EVP and Head of CardConnect at First Data, Jeff Shanahan said. “Our relationship will enable Ellie Mae to deliver a simple and secure solution for its clients and further enhanced consumer engagement for lenders.”

Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. In addition to the lending platform, the company introduced its set of developer tools – including APIs, interactive documentation, and API playground – called Encompass Developer Connect. Earlier this year, Ellie Mae teamed up with mortgagetech innovator Blend, who will leverage Ellie Mae’s electronic disclosure delivery, part of its Encompass mortgage solution. Also this spring, the company announced an integration with Lender Price, the digital mortgage platform from Cre8tech Labs, and partnered with fellow Finovate alum Finicity. The agreement between the two companies will integrate Finicity’s digital verification of assets technology into Ellie Mae’s Encompass solution.

Headquartered in Pleasanton, California, and founded in 1997, Ellie Mae has more than 1,000 U.S.-based workers and revenues in 2017 of $417 million. The company serves 3,500 financial institutions and mortgage lending firms, and processes more than a third of all mortgage loan applications in the U.S. Ellie Mae trades on the New York Stock Exchange under the ticker “ELLI” and has a market capitalization of $3 billion. Jonathan Corr is CEO.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Mortgagetech Magnates Ellie Mae and Blend Team Up

Mortgagetech company Blend and mortgage finance platform provider Ellie Mae have joined forces this week, as reported by American Banker. Through the partnership, Blend is leveraging Ellie Mae’s electronic disclosure delivery, a part of the company’s Encompass mortgage solution.

The integration will augment Blend’s self-service mortgage platform by offering a more seamless user experience. Lenders who use Ellie Mae’s Encompass loan origination solution can create and deliver electronic disclosures through Ellie Mae’s document preparation software. The electronic delivery will not only facilitate the e-signature process, it will also enhance compliance by leaving an audit trail.

Ellie Mae’s Encompass mortgage solution helps lenders originate more loans with lower origination costs and a faster time to close. Using the full Encompass solution, Ellie Mae helps lenders save an average of $967 per loan in operational improvements, such as saving time and postage from having to deliver disclosures via snail mail. Blend estimates its integration of Ellie Mae’s electronic disclosure delivery will save an average of $15 per loan.

Earlier this spring, Pacific Union Financial partnered with Ellie Mae to leverage the full Encompass mortgage management solution, enabling customers of both Pacific Union and Ellie Mae to deliver loan data and documents from Encompass to Pacific Union more efficiently and in real time.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. During the demo, presenter Jonas Moe, SVP of Market Strategy, demonstrated the company’s API by showing off an Alexa integration with Encompass Plus– asking questions such as, “What loans have rate lock expirations this week?” and “Search for a better rate.” Ellie Mae is headquartered in California. Jonathan Corr is president and CEO.

Blend demoed its data-driven mortgage at FinovateSpring 2016. The company was recently recognized for its achievements in the mortgage industry at the MBA Insights Tech All-Star Awards and was also featured on the Forbes Fintech 50 list. Last summer, Blend pulled in a $100 Series D investment from Greylock, Emergence Capital, Lightspeed Ventures, Nyca Partners, and 8VC, bringing its total capital to more than $160 million.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Lender Price Integrates with Mortgage Management Solution from Ellie Mae

Cre8tech Labs’ Lender Price, a digital mortgage platform that provides a product pricing and eligibility engine and competitive, real-time analytics, has partnered with fellow Finovate alum Ellie Mae. The Pasadena, California-based company, which demonstrated its PPE engine at FinovateSpring last year, will integrate its technology with Ellie Mae’s all-in-one mortgage management solution, Encompass. “Our pricing engine coupled with our real-time competitive analytics platform provides actionable insight into competitor pricing,” Cre8tech Labs President and CIO Dawar Alimi said.

Lender Price gives mortgage loan originators an openly accessible marketplace to price mortgage loans with hundreds of lenders in real-time. The company’s PPE engine can handle producing pricing and eligibility across all mortgage products including Conforming, Non-Conforming, Specialty Loans, and Hard Money, making it a more flexible solution compared to pricing engines built over a decade ago that are still commonly used.

“We are delighted to partner with Ellie Mae,” said Jerry Halbrook, who joined Lender Price as CEO in September. “Our secure, seamless integration with Encompass enables our clients to simplify the process of managing Products, Pricing and Eligibility, so they can more efficiently process mortgage loans and grow their business. We look forward to a long, successful relationship with Ellie Mae.”

Lender Price is the second Finovate alum to team up with the cloud-based mortgage finance platform provider this year. In March, Finicity announced that it was integrating its digital verification technology into Ellie Mae’s Encompass solution. Ellie Mae SVP of business development Parvesh Sahi said this underscored Ellie Mae’s commitment to working with technology partners to improve the way it serves customers and “change the way lenders and consumers engage in the loan manufacturing process.”

Founded in 2015, Lender Price demonstrated its technology at FinovateSpring 2017. With more than 85 partners and more than 30,000 registered users, Lender Price also recently partnered with Black Knight to integrate its LoanSphere Empower LOS into Lender Price’s POS solution. Last fall, the company was named a 2017 HW Tech100 Winner by Housing Wire.

Also demoing its technology at FinovateSpring 2017 last year, Ellie Mae showed how its Encompass Connect SolutionsConsumer Connect and Developer Connect, help lenders improve the application process for customers and provide developers with tools to quickly add new features and customizations to the platform. In March, Ellie Mae launched its Encompass Data Connect solution, which provides mortgage lenders with real-time data to help them make better lending decisions.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Ellie Mae to Power Delivery of Loan Data and Documents for Pacific Union

Mortgage finance platform provider Ellie Mae has teamed up with government lender Pacific Union Financial.

Under the agreement, Pacific Union will leverage Ellie Mae’s Encompass mortgage management solution. Customers of both Pacific Union and Ellie Mae will be able to deliver loan data and documents from Encompass to Pacific Union more efficiently and in real time. Specifically, joint customers will no longer need to download and upload loan data in multiple locations. “At Ellie Mae, our mission is to provide our lenders and partners with a true digital mortgage, which encompasses everything from consumer interest through loan delivery,” said Parvesh Sahi, SVP at Ellie Mae.

“Through our partnership with Ellie Mae, we will improve our efficiency by offering a secure, seamless data and document delivery workflow from their system of record,” said Warren Little, Chief Technology Officer at Pacific Union Financial. “We look forward to working with Ellie Mae to offer digital mortgage solutions that enhance customer service and business operations.”

Ellie Mae’s Encompass Mortgage Solution helps lenders originate more loans with lower origination costs and a faster time to close. Encompass leverages the company’s network of more than 230,000 users, thousands of service providers, and millions of transactions every month.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. During the demo, presenter Jonas Moe, SVP of Market Strategy, demonstrated an API integration by showing off an Alexa integration with Encompass Plus– asking questions such as, “What loans have rate lock expirations this week?” and “Search for a better rate.” Ellie Mae is headquartered in Pleasanton, CA. Jonathan Corr is president and CEO.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

 

Digitization, Data, and Automation: A Look at Tech Trends Driving MortgageTech

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Digitization and innovations in workflow automation and data integration are among the biggest trends driving much of mortgagetech. Whether you are a process facilitator, making the purchase experience easier on the homebuyer, or a loan servicer looking to better target your lending efforts, the efficiencies and insights provided by these technological trends are transforming this growing space within fintech.

In some ways, these are the same trends that are sweeping through not just technology but industry, as well. It’s true that workers and consumers in the 21st century have developed a love/hate relationship with an increasingly digitized, automated, and data-dependent world. But at least with regard to mortgagetech, these innovations are likely to prove more boon than bust, relieving much of the friction and many of the headaches and inefficiencies that plague all sides of the real estate transaction.

Writing at The Home Story, Timothy Ahern quoted the quarterly Mortgage Lender Sentiment Survey produced by Fannie’s Economic and Strategic Research (ESR) Group in which those surveyed put “a need for digitization and automation” at the top of their list of technological innovations they would like to see in their industry. “Survey results suggested that mortgage lenders have a strong interest in a fully digitalized mortgage process,” Ahern added.

With this in mind, we looked at trends in digitization, automation, and data integration in mortgagetech through the lens of a pair of FinDEVr alums: a Bay Area startup founded five years ago called Blend (FDSV16) on one hand, and a loan origination specialist that has been in the mortgage business since 1997, Ellie Mae (FDNY17), on the other.

Blend and the Art of Adding Intelligence to Mortgage Applications

For mortgage application process facilitators, digitization has been perhaps the single most significant technological innovation. And while reams of paper are often still involved in the average real estate transaction, digitization has created massive efficiencies in the process. Describing the current mortgage experience as one that is “paper-driven,” involving “endless back and forth,” lacking in “transparency”, and overly manual, Blend co-founder and CTO Eugene Marinelli discussed last fall at FinDEVr Silicon Valley how his company “makes the process a lot more automated, and a lot more efficient.”

Blend_FinDEVr_stage

Pictured: Blend’s Eugene Marinelli, CTO & Co-Founder, during his presentation “The Data-Driven Mortgage by Blend” at FinDEVr 2016 Silicon Valley.

Blend, for example, engages borrowers with straightforward, “very digestable” workflows to provide basic information about assets, income, and other data that will enable the platform to complete the loan application for the borrower. Borrowers can directly connect their accounts to the platform instead of having to login to their separate bank accounts and export the information into the application. The solution also leverages optical character recognition (OCR) technology to read and extract data from uploaded documents such as W-2s and pay stubs.

Under the hood, managing workflows with less friction is similarly a matter of managing data. Blend, for example, houses application data, property data, and borrower data centrally in its data model. The goal is to “add intelligence to the application,” according to Software Engineering Lead Nivi Jayasekar. “How do we only ask the borrowers the questions they really need to be answering and how do we source that information up to them appropriately at her right moment?” she asked. The solution for Blend is “centralized rules,” which ensure that an independent contractor, for example, gets an application with different queries and has different disclosure needs compared to a salaried worker. This process also supports compliance needs by routing the borrower responses to create an audit trail as well as the centralized rules engine.

The tools of digitization, automation, and data integration are ideal for the challenge of mortgages, which Blend describes as “data-rich and insight-poor.” With automatic data extraction and the ability to leverage this data to develop business rules that create more personalized experiences and reduce costs, companies like Blend are helping make one of life’s most important decisions – buying a home – less complicated and more transparent.

“This is by nature very complex,” Jayasekar said. “Some of it doesn’t need to be and we do a good job of reducing that redundancy through the borrower experience and connectivity.”

Automation, Open APIs and Ellie Mae’s Innovation in Loan Servicing

Automating the mortgage process, as Ahern noted above, is a major goal for those firms that are directly involved in loan servicing. Ellie Mae, which made its FinDEVr debut this spring, produces the software that processes nearly a quarter of all mortgage applications in the U.S. The company’s innovations in mortgage process automation and its new focus on open APIs have positioned Ellie Mae as a firm to watch among mortgagetech’s loan servicers.

In February, Ellie Mae unveiled the latest version of its mortgage management solution, Encompass, which automates the loan origination process. The all-in-one package facilitates CRM, point of sale, processing, underwriting, closing, and funding, as well as post-closing and shipping. The platform helps ensure compliance and loan quality with features like automatic loan review and channel-specific workflows. Electronic document management includes automated auditing and intelligent document recognition. Reporting and analytic tools help lending professionals take advantage of the critical data flowing through the system to make real-time performance insights.

But during its FinDEVr New York presentation in March, Ellie Mae’s VP of Platform Engineering Jeff Collins emphasized the platform’s embrace of Open APIs. “We’ve grown really well. We’ve solved a lot of problems,” Collins said of Ellie Mae, adding, “but now it’s time to look for innovation and excitement and new opportunities from partners outside our own walls.” Collins showed how the platform’s developer portal features a “Try It” mode that allows developers to experiment with deploying sample loan objects into any of the various loan fields in a sandbox type environment without having to write the code first.

EllieMae_FinDEVr-stage

Pictured: Ellie Mae VP, Platform Engineering Jeff Collins during his presentation, “Ellie Mae Encompass Developer Connect,” at FinDEVr 2017 New York.

In addition to other features, like Pipeline that enables query APIs for loans that match specific criteria, the platform also supports webhooks, which are user-defined HTTP callbacks. Collins demonstrated the example of a how Encompass could send notification of a newly created loan product as a webhook that would enable Ellie Mae’s lender customers to integrate it into their data warehouse or into other services in their business. “Because at the end of the day,” Collins explained, “we are the system that makes the object that makes money for the lender. But that integrates into a whole bunch of other workflows including things like loan servicing, because when that loan is ready to go they may want to start asking for payments from the customer.”

To underscore Ellie Mae’s commitment to open APIs, Collins demonstrated an Alexa-based Encompass Loan Officer Connect voice app for lenders, querying the technology for the status of various loans, including upcoming rate lock expirations, as well as directing the app to “run product and pricing” on specific loans in order to find a better rate. “Anybody can plug into this platform and become part of the ecosystem,” Collins said, “The goal being that by working together … we can make borrowers’ lives easier, to lower the pain for them, to get more people into houses.”

This concludes our series on proptech and mortgagetech in fintech. In case you missed them, check out our review of proptech’s role in fintech and a closer look at real estate investment technology. For more proptech, come to FinovateSpring where we’ll showcase a variety of proptech, mortgagetech, and other fintech at the San Jose Convention Center.