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Press Release

MarketWise Advisors, LLC Releases New ROI Study of Ellie Mae's Encompass All-in-one Mortgage Management Solution

Total Potential ROI Accelerates from $970 to $1,331 Per Loan

PLEASANTON, Calif. – May 1, 2017Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry, announced today that MarketWise Advisors, LLC has released a new version of the ROI study of Ellie Mae’s Encompass all-in-one mortgage management solution. The study, conducted from the second through the fourth quarters of 2016, provides an intensive evaluation of the return on investment lenders have achieved using Encompass and is a follow-up to the first MarketWise ROI study of Encompass conducted in 2014.

MarketWise Advisors was commissioned by Ellie Mae to analyze the financial performance and ROI of Encompass. The Ellie Mae Encompass solution was analyzed as a whole as well as by product, including Encompass Product & Pricing Service, Encompass Docs Solution, Encompass Compliance Service™, Encompass Flood Service, and Encompass 4506-T Service. The new study takes account of changing market dynamics and new Ellie Mae functionality to provide an up-to-date picture of the economic impact of Ellie Mae solutions on a lender’s cost of origination.

The study revealed a total potential ROI of $1,331.48 per closed loan on average. The increase was attributable to increased productivity, level of feature/function use, and the application of advanced workflow and audit rules that streamline processes. Overall, participants realized an ROI of 697 percent of investment in Ellie Mae solutions, or nearly seven dollars in expected return for each dollar invested.

“This study provides clear evidence that Encompass’ compliance capabilities, process automation, third-party service integrations and interoperability of a single system have a marked impact on the cost of origination,” said Jordan Brown, CEO, MarketWise Advisors, LLC. “During the course of both the 2014 and 2016 studies, it was apparent that participating clients accrued a substantial amount of incremental revenue through the use of Ellie Mae solutions.”

“The cost of origination is perhaps the single most important financial benchmark that we discuss with our customers and prospects,” said Jonathan Corr, Ellie Mae president and CEO. “By using technology to automate the complex mortgage process, study participants realized an annual return of 697 percent, that’s nearly seven dollars for every dollar invested. In many cases, that’s the difference between profit and loss for lenders.”

In addition to the study, MarketWise Advisors developed an ROI calculator that can provide new and existing clients a clear understanding of the potential financial benefits of Ellie Mae product lines. This is a unique tool for the mortgage industry which benchmarks expected financial performance and cost of origination impacts by product line and client tenure. Prospects and clients have an interactive tool available to analytically evaluate performance.

To view the complete study, click: http://elliemae.com/roi/

Study Methodology

MarketWise administered independently developed questionnaires and profiles to establish baselines for each study participant. Interviews were conducted at the lenders’ locations and, in many cases, included detailed reviews of financials dating back five years.

With this significant level of financial detail, MarketWise determined productivity gains and level of use relative to the total potential ROI. The level of productivity by year after implementation provides a clear view on how the Ellie Mae product line positively impacts a lender’s cost of origination. Observed benefits were validated and all cost data assembled. After the ROI for each of the individual lenders was determined, the benchmark performance level was developed to capture expected benefits realized by Ellie Mae clients. The benchmark ROI was then used as a baseline productivity assumption within the return on investment calculator.

About Ellie Mae

Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s Encompass® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit EllieMae.com or call 877.355.4362 to learn more.


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

Alexandra Gardell Kreuter
(646) 428-0618

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© 2017 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, 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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