New Ellie Mae Acquisition Helps Mortgage Lenders Streamline Compliance

By Nicole Zaro Stahl, Hacienda Network Staff Writer

Purchase of Mavent, Inc., Allows for One-Click Electronic Review of Loan Documents

The criteria for obtaining a mortgage have gotten much more rigorous over the past few years, as the impact of poorly verified loans cascaded through the financial industry. One consequence of past practices is the current universe of more than 330 federal and state consumer protection laws to which mortgage loans can be subject-including truth-in-lending, usury, fee limits, prepayment penalty restrictions, licensing, and both Fannie Mae and Freddie Mac predatory lending requirements.

Investors require that loans comply with this complex regulatory framework, notes Sig Anderman, the CEO of Hacienda-based Ellie Mae, the software and services provider for banks, mortgage banks, credit unions, and mortgage brokers.

To address this need, Ellie Mae acquired Mavent Inc., an automated compliance solutions provider, in December 2009. Mavent's software does an electronic review of the loan documents, so the origination company can find out, with just a mouse click, whether there are any violations of the many rules and regulations.

"A loan that violates the rules causes a major headache," explains Anderman. While it could take many hours to verify the hundreds of rules and regulations manually, it can be done in less than 60 seconds electronically. The software examines the document package and produces a report, with green checkmarks where the loan complies, and "a red X if it bumps up against something" that might make the loan non-saleable.

"We bought Mavent because our mortgage originators need to check that every one of the new loans they are originating is compliant with all applicable rules and regulations," Anderman comments.

The company also has a strong commitment to the community, mounting at least four different helping initiatives a year. The most recent was the January sale of earthquake survival starter kits to raise money for the Red Cross Haiti Relief and Development fund. Habitat for Humanity is another frequent beneficiary, both financially and through the people power of Ellie Mae employees. "That's an important part of our business philosophy. We're not just part of the mortgage industry but also part of the community, and we have to act responsibly, beyond simply trying to make money," Anderman concludes. For more information, visit www.elliemae.com.

Photo: Ellie Mae's corporate headquarters is at 4155 Hopyard Road.

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