Flagstar Bank and Ellie Mae® Announce Integration of Encompass® and Digital Document Transfer

Integration enables industry's first seamless transfer of electronic documents from a loan origination system to Flagstar's renowned electronic document management system

Dublin, CA—September 20, 2006—Ellie Mae, an award-winning provider of innovative software and services for the mortgage industry, and Flagstar Bank, one of the nation's leading originators of residential mortgage loans, have partnered to integrate Flagstar's Digital Document Transfer platform to Ellie Mae's Encompass loan origination system.

With a single mouse click, the integration empowers brokers and correspondents to electronically submit underwriting and closed loan packages directly into Flagstar's electronic document management systems in accordance with industry standards as defined by the Mortgage Industry Standards Maintenance Organization (MISMO). This transfer of MISMO SMART Document Levels 3 and 4 allows for sound exchange of data and documents. Ellie Mae is the first to use the advanced features of Flagstar's Digital Document Transfer platform. More than just a simple file transfer, the platform's secure web service allows for two-way communication and immediate feedback of transfer success. The Digital Document Transfer platform also provides for electronic package tracking to Encompass users.

"We've taken integration with a loan origination system to a new level," said Jason Dufner, senior vice president of IT Content & Banking Systems, Flagstar Bank. "This solution represents the first integration between an LOS-embedded electronic document management system and Flagstar's Digital Document Transfer platform."

As a result of the integration, broker and correspondent customers can now seamlessly submit individual or multiple loan packages with their associated documents directly into Flagstar's Paperless Underwriting and other paperless mortgage processing systems. Once the documents are received, they are indexed and automatically routed to the appropriate personnel. In addition, all transferred electronic documents are viewable to Flagstar customers via its Paperless File Manager application at wholesale.flagstar.com.

"Flagstar and Ellie Mae bring a lot to the table for our mutual customers," Dufner said. "Ellie Mae brings the benefits of an integrated paperless imaging platform embedded within the customer's LOS for workflow and document retention, and Flagstar brings over 10 years of experience and expertise in paperless mortgage technology, workflow, and process management." The integration yields increased efficiencies and faster loan approvals for originators. Flagstar customers can deliver their closed packages electronically as well. For correspondents, electronic closing package delivery increases the speed of purchase from their warehouse line and reduces the risk of net interest losses. For brokers, delivering a closing package electronically ensures that the loan arrives securely at Flagstar and on time. In a traditionally paper-based industry, Flagstar has been processing and routing mortgage documents electronically for over seven years.

"The industry is ready for paperless transactions," said Jonathan Corr, chief strategy officer at Ellie Mae. "Through this integration to Flagstar's systems, we're empowering mortgage originators and lenders to operate much more efficiently without disrupting the ongoing flow of data. It's a much faster process, and we're keeping the momentum of electronic processing from start to finish. It's a big step forward as the industry moves to paperless originations."

Electronic document delivery became standard in Encompass in August 2005 with the launch of Encompass 2.7, which became the first loan origination system to integrate electronic document management capabilities. From loan origination to closing, the technology integrated in Encompass enables mortgage professionals to easily convert paper loan documents into electronic documents which can be stored in the program's electronic folders and linked to their corresponding loan files. The solution offers a cost-efficient method of storing, archiving, and accessing these electronic documents. Encompass also includes secure document delivery, which enables originators to safely exchange files or loan packages with third parties via several secure delivery options.

The impending announcement of the seamless transfer of electronic documents from Encompass to Flagstar has already generated great interest. Mark Dallal, senior vice president of national production for Home Builders Financial Network, a division of Fidelity Information Services, sees great potential in the new capabilities. "At HFN, our front-end process is completely paperless," Dallal said. "We're working with lenders such as Flagstar to completely change the delivery of the final package to an electronic format. Knowing that we'll be able to seamlessly transfer documents to Flagstar's electronic document management system is therefore great news. It should help significantly lower costs and increase efficiencies."

About Ellie Mae, Inc.
Ellie Mae is an award-winning provider of software and services for the mortgage industry, which was recently named to the Inc. 500 list of America's fastest growing private companies. Ellie Mae provides a comprehensive line of products and services including the company's flagship Encompass® mortgage automation system, Contour™ and Genesis 2000® loan origination software, Encompass Websites™ for mortgage brokers, and Ellie Mae Docs™ services for document processing. Ellie Mae's ePASS® Network is the mortgage industry's online transaction platform enabling all mortgage companies in the United States to easily do business online with dozens of leading lenders and thousands of settlement service providers. Ellie Mae is based in Dublin, California. To learn more about Ellie Mae, visit www.elliemae.com or call (888) 955-9100.

About Flagstar Bank
Flagstar Bancorp, which has $15.2 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. Flagstar Bank is a leading residential mortgage wholesaler, with an extensive national network of mortgage brokers and correspondent lenders. Flagstar also operates a national retail network of home loan centers. For more information about the Digital Document Transfer platform, please contact Flagstar Bank at ddtinfo@flagstar.com. Further information about Flagstar Bank can be found at www.flagstar.com.

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Ellie Mae, Encompass, ePASS, and Genesis 2000 are registered trademarks, and Contour, Executive Websites, and Ellie Mae Docs are trademarks, of Ellie Mae, Inc. All rights reserved.