Ellie Mae announced today that it has seen significant decreases in the time to close construction-to-permanent loans since the February 2017 launch of its comprehensive construction lending support within its Encompass mortgage management solution.
Additionally, Ellie Mae says it has seen an increase in construction loan volume for both construction-only and construction-to-permanent loans for construction lending clients since February.
This follows Ellie Mae’s expansion of its construction lending support, having provided a comprehensive way to process construction-only and construction-to-permanent loans within Encompass. This expanded support included the following:
- Construction management tool: The construction management tool provides a central location within Encompass to originate construction loans and input key construction tracking information, making the construction lending process more efficient and consistent with the standard loan origination process.
- Blended and separate KBYO disclosures: Support for both methods of generating construction-to-permanent loan disclosures allowed by KBYO, a single blended disclosure, and two separate disclosures detailing construction and permanent loan terms, provides flexibility to lenders.
- Federal and state compliance reviews: Federal and state consumer protection compliance reviews for construction-only and construction-to-permanent loans with either separate or blended disclosures through the Encompass Compliance Service, powered by Mavent.
- Closing documents: Closing documents, including all 50-state eligible documents for both construction-only and construction-to-permanent loans.
“We have experienced significant growth in construction-only and construction-to-permanent loans since our enhancement release, while time to close for construction-to-permanent loans shrank on average eight days and time to close for construction-only loans shrank on average 10.5 days,” says Jonathan Corr, president and CEO of Ellie Mae. “With our latest version of Encompass, our support for construction loans enable our banks, credit unions and mortgage lenders to close loans faster, improving efficiency while ensuring compliance and loan quality.”
“Our construction loan production has increased 30 percent based on 2016 year-over-year volume. Leveraging Ellie Mae’s technology enhancements to construction lending has improved our efficiency as we build on our past success in construction originations,” says Susan Brown, senior vice president and construction and renovation production manager at Umpqua. “We anticipate this trend to continue and look forward to growing our business throughout 2017 and beyond.”