Ellie Mae Announces Digital Mortgage ROI and Impact on Cost of Origination Study from Marketwise Advisors, LLC
12 Mars 2019 - 2:00PM
Business Wire
New Study Shows Impact of Technology on
Lenders’ Efficiency and Growth; Substantial Reduction in
Origination Cost and Time to Close
Ellie Mae® (NYSE:ELLI), the leading cloud-based platform
provider for the mortgage finance industry, announced today the
release of the Digital Mortgage Return on Investment (ROI) and
Impact on Cost of Origination Study from Marketwise Advisors, LLC.
In 2018, MarketWise Advisors, LLC, was commissioned by Ellie Mae to
conduct an intensive evaluation of the cost of origination and
return on investment (ROI) lenders could achieve from using the
Encompass® Digital Lending Platform™.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190312005304/en/
Released in conjunction with Ellie Mae Experience 2019, the new
study includes the industry’s first detailed analysis on the cost
of origination with benchmarking across the entire Ellie Mae
customer base of more than 2,500 lending organizations, including
banks, credit unions and independent mortgage providers. The study
also extends its scope to include additional Ellie Mae solutions,
such as AllRegs® by Ellie Mae and Velocify® by Ellie Mae.
The 2018 findings demonstrate the delivery of continued,
sustained financial benefits of implementing Ellie Mae solutions
that enable lenders to adapt to market changes, maintain profit
levels and manage origination costs.
Key findings from the study included:
- Average cost of origination of a loan
was $813 lower than the industry average.
- The total potential positive financial
impact for customers who adopt Encompass plus additional Ellie Mae
solutions was $1,182 per loan, on average.
- Average total annual ROI was 698% -- or
nearly seven dollars in return for each dollar invested.
- On average, Ellie Mae’s customers
eliminated 23.5 hours to originate and fulfill a mortgage
loan.
- The average payback period for Ellie
Mae customers on their investment in Encompass was 1.92
months.
- The average net income margin for study
participants was 9.96%, compared to industry levels of between
-0.08% and 0.21% as reported by MBA in 20181.
“The 2018 housing market presented significant challenges for
lenders. Total loan volume decreased, led by a dramatic decline of
refinance activity due to rising interest rates. The cost to
originate a loan grew to as much as $8,957 in 2018, according to
the Mortgage Bankers Association,” said Jordan Brown, CEO of
MarketWise Advisors, LLC. “According to the study, Ellie Mae
customers, on average, were able to lower their cost of origination
by $813 per loan, and to reduce the time to originate and fulfill a
loan by an average of 23.5 hours per loan. We clearly see that to
meet the challenges of the mortgage lending environment, technology
has a significant impact on both efficiency and growth, enabling
lenders to do more with less.”
“The cost of origination is perhaps the single most important
financial benchmark that we discuss with our lenders,” said
Jonathan Corr, Ellie Mae president and CEO. “By using technology to
automate the complex mortgage process, Ellie Mae lenders realized
an annual return of 698 percent, or nearly seven dollars for every
dollar invested. Beyond the numbers, our lenders are better poised
to deal with shifting industry headwinds, regulation and changing
demands of homebuyers, all by leveraging digital mortgage
technology.”
To view the full report or for more information on a custom
in-depth ROI analysis for your organization, please visit
www.elliemae.com/ROI
About Ellie Mae
Ellie Mae (NYSE:ELLI) is the leading cloud-based platform
provider for the mortgage finance industry. Ellie Mae’s technology
solutions enable lenders to originate more loans, lower origination
costs, and reduce the time to close, all while ensuring the highest
levels of compliance, quality and efficiency. Visit EllieMae.com or
call (877)355-4362 to learn more.
© 2019 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®,
Mavent®, Velocify®, the Ellie Mae logo and other trademarks or
service marks of Ellie Mae, Inc. appearing herein are the property
of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other
company and product names may be trademarks or copyrights of their
respective owners.
1
https://www.mba.org/2018-press-releases/june/independent-mortgage-bankers-report-net-production-losses-in-the-first-quarter-of-2018
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version on businesswire.com: https://www.businesswire.com/news/home/20190312005304/en/
Erica HarvillEllie Mae, Inc.(925)
227-5913Erica.Harvill@elliemae.com
Caitlin CoffeeAllison+Partners(312)
635-8204EllieMae@allisonpr.com
Ellie Mae, Inc. (NYSE:ELLI)
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