Fidelity National Financial Inc (FNF): Should You Follow This Title Insurer Into Mortgage Processing?

Page 2 of 2

In its latest fiscal year, Ellie Mae Inc (NYSE:ELLI) reported strong financial results, with increases in revenues and operating income of 83.5% and 1,139.9%, respectively, versus the prior year. The company’s sales growth benefited from a 37% jump in active users and greater use of ancillary services, like web hosting and compliance management. With nearly 74,000 mortgage professionals using the company’s services out of a potential market of 273,000 industry professionals, according to the U.S. Bureau of Labor Statistics, Ellie Mae has strong growth opportunities for years to come.

The mortgage industry is rising once again and so are government regulations, like the federal Dodd-Frank Act, which makes compliance a vitally important area for mortgage professionals. The mortgage processing industry’s software provides the tools to streamline professionals’ workload and to help ensure adherence to the law, ultimately increasing users’ efficiency. While Fidelity National Financial Inc (NYSE:FNF) should do okay with its acquisition, Ellie Mae Inc (NYSE:ELLI) should be better able to ride housing’s growth to a higher valuation.

Robert Hanley owns shares of Ellie Mae. The Motley Fool recommends Ellie Mae. The Motley Fool owns shares of Ellie Mae.

The article Should You Follow This Title Insurer Into Mortgage Processing? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2