Ellie Mae Announces Digital Mortgage ROI and Impact on Cost of Origination Study from Marketwise Advisors, LLC
New Study Shows Impact of Technology on Lenders’ Efficiency and Growth; Substantial Reduction in Origination Cost and Time to Close
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190312005304/en/
Released in conjunction with Ellie Mae Experience 2019, the new study includes the industry’s first detailed analysis on the cost of origination with benchmarking across the entire Ellie Mae customer base of more than 2,500 lending organizations, including banks, credit unions and independent mortgage providers. The study also extends its scope to include additional Ellie Mae solutions, such as AllRegs® by Ellie Mae and Velocify® by Ellie Mae.
The 2018 findings demonstrate the delivery of continued, sustained financial benefits of implementing Ellie Mae solutions that enable lenders to adapt to market changes, maintain profit levels and manage origination costs.
Key findings from the study included:
Average cost of origination of a loan was
$813lower than the industry average.
The total potential positive financial impact for customers who adopt
Encompass plus additional Ellie Mae solutions was
$1,182per loan, on average.
Average total annual ROI was 698% -- or nearly
seven dollarsin return for each dollar invested.
- On average, Ellie Mae’s customers eliminated 23.5 hours to originate and fulfill a mortgage loan.
- The average payback period for Ellie Mae customers on their investment in Encompass was 1.92 months.
- The average net income margin for study participants was 9.96%, compared to industry levels of between -0.08% and 0.21% as reported by MBA in 20181.
“The 2018 housing market presented significant challenges for lenders.
Total loan volume decreased, led by a dramatic decline of refinance
activity due to rising interest rates. The cost to originate a loan grew
to as much as
“The cost of origination is perhaps the single most important financial
benchmark that we discuss with our lenders,” said
About Ellie Mae
Ellie Mae, Inc.