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Ellie Mae Sees Record Traffic on ePASS Network By James Comtois Mortgage software giant Ellie Mae has experienced record usage of its online business transaction platform, the ePASS Network. On an average workday during January 2007 the ePASS Network was used to electronically transmit data on over 40,000 mortgage loans and reached a peak of 8,000 loans transmitted in just one hour. One third of the nation's $3 trillion in mortgage loans go through ePASS, which virtually eliminates the need for the 500 pages of printed documentation that normally constitute each mortgage loan file. More than 90% of the nation's 50,000 mortgage brokers use ePASS every month to access wholesale lenders and more than 17,000 settlement service providers. According to Jonathan Corr, Ellie Mae's chief strategy officer, the company is seeing the number of transactions processed on ePASS grow day by day. "It just keeps going," he said. "We keep having record days, the last few days we keep beating the record the days before." Mr. Corr pointed out that part of this increased momentum is due to the arrival of the New Year. "We always see an up-tick in momentum at the beginning of the year, because folks buy our software at the end of the year but once the year starts, they close out on their old software and shortly thereafter they do B2B transactions through the platform, so you always see bigger jumps in the beginning of the year." The growth of ePASS is also due to more brokers seeing the advantages of electronic closing and origination. "People are seeing the benefits of lower costs, faster closings, quicker customer turnaround, better commitment to customers and the other aspect of it is in many ways e-origination really helps brokers make sure things are in compliance," Mr. Corr added. The ePASS Network transmits electronic data to and from mortgage originators, lenders and other ancillary mortgage service providers. "Rather than taking a loan application by hand and faxing it into the lender, then relying on faxes, overnight delivery and couriers to deliver information to and from service providers like appraisers, title companies and insurance companies, ePASS Network users can now electronically transmit all of that data, instantly and reliably, without paper," said Sig Anderman, Ellie Mae's CEO in a statement. "In today's cooling mortgage market, that means users can produce faster turn-around times and better service for their clients, while also knowing they're doing their share for the environment." With the mortgage market cooling down, mortgage companies are searching for new ways to compete in the marketplace. The ePASS Network allows them to provide better service with its higher accuracy and quicker response times. Loan files no longer require repetitive data input, because everything is handled electronically through a unified and central database. "People are seeing the benefits of lower costs, faster closings, quicker customer turnaround, better commitment to customers, and the other aspect of it is in many ways e-origination really helps brokers make sure things are in compliance," Mr. Corr added. Using the system also eliminates courier fees. Documents are scanned or information is entered directly into the system ensuring fewer lost documents and fewer mistakes, not to mention delivery times that are close to instantaneous. The system's electronic processes cuts response times from third party providers from days and weeks to minutes and hours. With even just portions of loans being processed electronically using ePASS, Ellie Mae estimates that the 8.5 million transactions handled through ePASS in 2006 reduced paper usage by half a million reams. Mr. Corr said that this growth in Ellie Mae's network may be a sign that the industry is moving closer towards a paperless origination environment. "We believe in the next few years, like 2010, everything will be e-originated. Everything that can be done electronically will be. In my mind, whether it's 2010 [or] 2011, it'll be e-originated. Now this is different from eMortgage. We have to move step by step. [But] we are beginning to accelerate there's no question."

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