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Press Release

Ellie Mae Announces Digital Mortgage ROI and Impact on Cost of Origination Study From Marketwise Advisors, LLC

PLEASANTON, Calif. – March 12, 2019Ellie 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™.

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, reduce origination costs, and shorten 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.


Erica Harvill
Ellie Mae, Inc.
(925) 227-5913

Caitlin Coffee
(312) 635-8204

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© 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.

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