Ellie Mae and Black Knight Financial Services offer mortgage lenders different value propositions so the competitive dynamic between the two companies hasn't changed.
"They have done some acquisitions in the space. Nothing around origination software, per se," said Ellie Mae CEO Jonathan Corr in response to a question during the company's third-quarter conference call.
"They bought a solution that
Ellie Mae had net income of $13.8 million for the third quarter, up 121% from $6.2 million
The company has more bank customers than nonbank clients, Corr said when asked about the future prospects for origination market share growth at its users. But it makes sense for Ellie Mae "to be penetrating both sides of that" when it comes to seeking new clients, he added.
However, more origination business is going to go to the nonbank lenders "just based on comments from the leaders of these larger national banks, Jamie Dimon, obviously things
The
"What we have seen over the last couple years is the third-party origination channel, especially the corresponding channel of a lot of our nonbank lenders has expanded. So as some of the larger banks have gotten out of correspondent and on to post-sale, many, many of our lenders have gotten into those channels," Corr said.
The pending retirement of Ellie Mae Chief Financial Officer Ed Luce was announced in the earnings release. Effective April 1, 2017, he will be replaced by Senior Vice President of Finance Matt LaVay.