Representatives of both Ellie Mae and PHH Mortgage Corp. used similar words about their teaming up in the Encompass360 Select program, that the technology involved provides seamless synergies to users.
Jonathan Corr, chief strategy officer for Ellie Mae, said that Encompass360 Select program had been in beta since the start of the year, but PHH Mortgage was the first participant it has announced in a major fashion.
In the current market, Corr said, both sides of the equation that use Encompass360 are looking to build business. From the lender side the question is how do they effectively acquire volume in a cost-efficient way?
From the originator standpoint, those customers were coming to Ellie Mae looking for it to provide a more seamless experience with strategic partners.
Based on those things, Ellie Mae put together the Encompass360 Select program, Corr said. "What that does is it leverages the vast network we've established and utilizes our sales, marketing and technology capabilities to effectively allow them to do business in a very efficient, high-velocity, cost-effective way," he said.
PHH Mortgage is looking to increase the amount of business it does in its correspondent channel, said Mike Dirrane, executive vice president of sales.
The technology allows for PHH Mortgage to expand its reach without adding a massive account executive sales force, both said. Dirrane noted that there are only a handful of lenders in the Select program, which allows it to target the high quality of originator it seeks to do business with.
The technology allows the lender to accomplish this in a targeted, cost-effective way, Corr said. PHH Mortgage can use the program to target originators who meet the high-quality originator profile it seeks.
He called it a "virtual account exec, inviting in the loans that meet the criteria of PHH in a much more cost-effective way." It allows PHH to be proactive and reach out to approved customers on a loan-by-loan basis "and telling them I want this business at this moment in time."
Dirrane echoed those words, saying it provides a "cost-effective mode of acquisition different than the traditional AE sales force in the marketplace." PHH gives Ellie Mae "a strike zone" of the originators it wants to do business with.
"Ellie Mae can electronically tap them on the shoulder and on any given loan they are putting into the system our pricing will pop up," Dirrane said.
PHH's goal for its correspondent business is $15.3 billion in volume, or 26% of total production, he said.
If an originator who is an Encompass user and meets the criteria set by but is not yet approved by PHH, the system can extend an invitation and there is an expedited approval process.
The system works with PHH Mortgage's Speedy Online Application and Response system, so the originator can price and lock-in the loan in Encompass.
Corr said the Encompass system becomes "a robust system of record for the originator." Items do not have to be copied between Encompass and SOAR.
In fact, he continued, there needs to be more done in the industry in terms of seamless connectivity of systems.
Dirrane said the system is for the correspondents PHH does business with and not for the private-label business.
