Ellie Mae, a provider of on-demand software solutions and services for the residential mortgage industry, announced July 9 that Homeward Residential Inc., a subsidiary of Ocwen Financial Corp., is participating as an investor in Ellie Mae’s Total Quality Loan (TQL) program.
TQL is designed to further enhance the loan quality, compliance and salability of loans that are originated through Ellie Mae’s Encompass mortgage management solution. TQL offers a suite of services combined with a best practice workflow designed to improve loan consistency and quality. Services include integrated compliance checks, income verification, fraud detection and flood-service ordering. A secure, tamper-proof technology enables lenders to share the documentation and data results from those services with investors and other stakeholders in the mortgage supply chain, including proof of Ability-to-Repay (ATR) and Qualified Mortgage (QM) compliance requirements.
“Ellie Mae’s TQL program will assist Homeward in sourcing high-quality, QM-compliant loans even more efficiently by reducing the time, cost and redundant steps in the process,” said Jim Cotton, senior vice president of correspondent lending at Homeward. “TQL will also provide a better experience for our correspondent sellers who use Encompass, which currently represent more than half of all of our approved sellers. TQL also will give us more robust data on the loans we are buying and the quality of our counterparties and their vendors, and will give prospects another reason to sell to us.”
“We’re very pleased that Homeward has joined Ellie Mae’s TQL program,” said Jonathan Corr, Ellie Mae’s president and chief operating officer. “Investors can use TQL, and the data it provides, to improve overall loan quality and review ATR/QM compliance. At the same time, lenders who participate in TQL have reported decreases in loan suspensions, faster decisions on acquisitions and fewer days on warehouse lines.”