HUD's RESPA Rules Driving eMortgage Adoption — Added benefits: 350% higher pull-through and five days faster to close

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October 05, 2010

CINCINNATI – October 5, 2010– eLynx, a portfolio company of American Capital (NASDAQ: ACAS), today announced that loan closing data from its

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^SMplatform indicate that new RESPA regulations are having at least one indirect, positive effect on the mortgage industry: Three times as many borrowers who sign disclosures electronically make it all the way to the closing table. In order to comply with the new rules, lenders are turning to electronic disclosure solutions. This not only makes it easier to comply with the new RESPA rules, according to an eLynx study of loan closing data, it results in faster closings and a higher pull-through rate for the lenders, both of which are good news for the lenders.

The company, which has been providing its eDisclosure product to lenders for many years, says a fully electronic disclosure process appeals to both lenders and borrowers. Furthermore, it is now clear that borrowers who accept upfront disclosures electronically are statistically more likely to stick with the lender through to loan closing, helping lenders remove paper, time and expense from their processes and to improve their application-to-closing ratio.

”Lenders have long had the goal of removing expensive paper from the lending process, but some worried that borrowers would resist electronic documents. We're finding that is not true,” said Sharon Matthews, eLynx president and CEO. “In one case study we performed for a lender client, upwards of 70% of borrowers opted for electronic upfront disclosures, saving the lender a significant amount of time and money. Less than 1% of borrowers opted out explicitly of electronic.”

HUD's new RESPA rules make it necessary for lenders to re-disclose information to borrowers if certain conditions are met during the loan origination process. Disclosing electronically is saving lenders time and money at the same time it provides necessary audit trails for compliance and eliminates errors caused by re-keying information. Furthermore, by tracking information flowing through its extensive network of lenders and settlement agents, eLynx found that without electronic signatures, less than 20% of loans in the lender's pipeline result in a closing. But if the borrower reads and signs a disclosure package electronically, the closing rate jumps to almost 52%, an increase of 350%. Finally, eLynx has found that a mortgage loan processed fully electronically will make it to the closing table five days faster than one processed with paper, a competitive advantage for lenders.

About eLynx

eLynx, a portfolio company of American Capital (NASDAQ: ACAS), provides the most widely used network for electronic document collaboration and distribution services for the financial services industry. Enterprises use eLynx to capture and maintain data electronically throughout the document life cycle, automating paper-intensive processes, improving workflow, reducing costs and ensuring compliance with industry regulations. eLynx serves more than 500 financial institutions, including 7 of the top 10 banks and has processed over 45 million loans. In addition, over 4,000 enterprises worldwide, comprising more than 4 million users in a broad spectrum of industries, use eLynx's enterprise document viewing and output software daily. The company was founded in 1994 with headquarters in Cincinnati and offices in Portland, Oregon. It maintains redundant data centers in Beaverton, Oregon and Cincinnati, Ohio. For more information, visitwww.elynx.com.

Company Contact:

Robert Nilsson
Vice President of Marketing and Market Development, eLynx
800-466-5969

rnilsson@elynx.com

Media Contact:

Rick Grant
800-979-9049

rick@rickgrant.net

News Source : HUD's RESPA Rules Driving eMortgage Adoption — Added benefits: 350% higher pull-through and five days faster to close