Ellie Mae Enhances Encompass; ATR/QM Solution Is ‘Main Attraction’


Ellie Mae, a provider of automated solutions for the residential mortgage industry, has enhanced its Encompass mortgage management solution for the fall release.

Ellie Mae says the enhancements will include new ability-to-repay (ATR)/qualified mortgage (QM) solutions that will enable lenders to automatically assess QM eligibility and effectively document QM compliance to investors and regulators.

According to Ellie Mae, the ATR/QM solution will provide the following:

-Tools to test for key ATR and QM calculations, such as total debt-to-income (DTI) and points and fees calculations, including a bona fide discount point assessment;
-Functionality for underwriters to demonstrate they have considered, verified and documented a consumer's employment, income, assets and obligations in order to determine the consumer's ATR;
-The ability to test the loan's annual percentage rate for safe-harbor status;
-The ability to determine whether risky loan terms or features are present;
-Multiple reports and worksheets that can be delivered along with the loan to investors to document QM compliance; and
-Alerts that identify conflicts between loan data and ATR/QM standards.

Ellie Mae says its ATR/QM solutions provide eligibility recommendations and feedback for multiple types of QM loans: general QM, agency/government-sponsored enterprise QM, small creditor balloon payment QM and small creditor QM.

According to Ellie Mae, Encompass360 users will see the assessments real-time via an online ATR/QM checklist that will change and provide alerts as elements in the loan file change. The checklist will red-flag changes that could affect QM-eligibility status and safe-harbor treatment and show underwriters what needs to be reviewed; the functionality also allows lenders to write their own business rules and set parameters to focus on specific types of QM originations, says the company.

"Our ATR/QM solution is definitely the main attraction within the fall release," says Jonathan Corr, president and CEO of Ellie Mae. "Assuring that our clients – and their more than 90,000 users – are compliance-ready for QM has been a priority for Ellie Mae. As compliance continues to be a top priority, this release and the enhancements in the pipeline for early 2014 will also help clients expand their origination channels to help them adapt to the market shift from refinance to purchase."

Ellie Mae says the Encompass fall release will be rolled out early this month.

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