National Loan Software Outage Creates Havoc for MLO's and Realtors

Mortgage and Lending with Franklin Advantage Inc. NMLS Lic. # 343946

AR Forum

Since yesterday, a Software used by Loan Officers and those in the mortgage industry has experienced Nationwide Outage.  The software through Ellie Mae, known as Encompass has brought loan origination, underwriting, and closing almost to a stand still.

Frustrated ClientWhile some functions can still be performed, there are still many that either can not be performed, or require some type of back-up methodology.

For new loans, this does not create severe issues relative to the timing of closing loans, but mostly related to issues such as ordering credit reports and other file maintenance during the early processing of a loan.

Closings; however, are another issue.  Some lenders such as myself, are still able to lock if we haven't already done so.  Underwriting and the signing off of conditions, ; loan documents, and funding are another issue.  Some lenders have been able to enact back-up manual procedures to skirt these issues, while other have not done so.

The issues lasted all day yesterday with Ellie Mae announcing late afternoon that technical issues had been resolved.  However; early this morning all lenders using Encompass were notified again that issues had resurfaced overnight with Encompass still having the same issues so far today.

In the meantime, reports across the Country indicated that Realtors and Clients alike are outraged due to these issues.  Many LO's report that no matter how they try to explain the issue that Realtor and client relations are being strained to the max.

To read the latest news regarding this issue, please visit the link below to an article in today's Mortgage News Daily for complete details.

Ellie Mae Encompass Outage

As a loan originator myself, please know that all of us in the industry are doing our best during this very unusual technical crisis.

While frustrating, we hope and ask that you will be patient with all of us while industry experts Nationwide attempt to again resolve this frustrating issue.


Thanks for reading.


Photo Courtesy of Jesadaphorn /

Posted by


Wayne L. Brown, NMLS # 343946
Licensed Mortgage Specialist
Franklin Advantage, Inc.
Direct: 858-997-6300

Online Application:



L/O CA DRE LIC. # 00906571

Corp. NMLS # 285786

CORP CA DRE LIC. # 01837286


Equal Housing Lender


About Wayne Brown


Wayne is a Licensed Mortgage Banker, and is based in San Diego.  With over 35 years in commercial and mortgage banking, he serves all of California and has closed more than 5,600 loans in his career.


He specializes in Conventional, FHA, VA, and Reverse Mortgages for residential lending purposes.  Both he and his company always strive to exceed each client's expectations through knowledgeable, ethical, and transparent representation to service their financial needs. 


Contact Wayne for a Free and Confidential mortgage analysis and pre-approval without obligation, or to simply get answers to your mortgage questions.  Wayne can be reached directly at 858-997-6300.

Equal Housing Lender                     

Comments (3)

Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

My preferred lender is having issues with it too.  How frustrating.

Apr 01, 2014 05:07 AM
Wayne L. Brown
Franklin Advantage Inc. - Alpine, CA


Yes, many of us are pulling our hair out.  So much for technology.

Thanks for your comment.

Apr 01, 2014 06:42 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Wayne. It was a little frightening, but everything worked out OK, but no matter what the business we can easily be at risk.

Thank you for commenting on my post.

May 17, 2014 01:33 AM