Purchase Market Heats up While Time to Close Shrinks to Shortest Duration since Early 2015, According to Latest Origination I...
April 19 2017 - 09:00AM
Business Wire
Home loans for purchases increased to 63 percent in March, up
from 57 percent the month prior, according to the latest
Origination Insight Report released by Ellie Mae® (NYSE:ELLI), a
leading provider of innovative on-demand software solutions and
services for the residential mortgage industry.
The average time to close all loans decreased to 43 days in
March, down from 46 days in February, the shortest time to close
since February of 2015. Similarly, the time to close a refinance
dropped to 43 days from 47 days the month prior, and time to close
a purchase dropped to 43 days, down from 45 days in February.
As the average 30-year note rose slightly in March to 4.39
percent, the percentage of Adjustable Rate Mortgages (ARMs)
increased to the highest point since 2014 at 5.6 percent, up from
5.3 percent the month prior.
“The purchase market continued to heat up in March, representing
63 percent of total closed loans,” said Jonathan Corr, president
and CEO of Ellie Mae. “We also saw the time to close shrink to the
shortest duration since February of 2015 at 43 days across all
closed loans, purchases and refinances, as Ellie Mae lenders
automate more mortgage processes to improve efficiency, quality and
compliance.”
The Origination Insight Report mines its application data from a
robust sampling of approximately 80 percent of all mortgage
applications that were initiated on the Encompass® all-in-one
mortgage management solution. Ellie Mae believes the Origination
Insight Report is a strong proxy of the underwriting standards
employed by lenders across the country.
Ellie Mae also distributes data from its monthly Ellie Mae
Millennial Tracker, which focuses on mortgage applications
submitted by Millennials during specific time periods. Ellie Mae
defines Millennials as applicants born between the years 1980 and
1999. The Millennial Tracker will continue to be released on the
first Wednesday of each month.
MONTHLY ORIGINATION OVERVIEW FOR MARCH 2017
Mar. 2017* Feb. 2017*
6 Months Ago(Sept.
2016*)
1 Year Ago(Mar. 2016*)
Closed Loans Purpose Refinance 37%
43% 45% 45%
Purchase 63%
57% 54% 55%
Type FHA 23%
23% 20% 22%
Conventional 63% 63%
68% 66%
VA 10% 10% 9%
9%
Days to Close All 43 46
48 44
Refinance 43 47 50
41
Purchase 43 45 47 45
Percentage of ARM and Fixed Loan Volume ARM %
5.6% 5.3% 4.0% 4.4%
30-Year Rate
Average 4.39% 4.36% 3.75% 4.12%
*All references to months should be read as month ended.
PROFILES OF CLOSED LOANS FOR MARCH 2017
Closed First-Lien Loans (All Types)
FICO Score (FICO) 721
Loan-to-Value (LTV)
80
Debt-to-Income (DTI) 25/39
More information and analysis of closed and denied loans by loan
purpose and investor are available in the full report at
http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/.
To get a meaningful view of lender pull-through, Ellie Mae
reviewed a sampling of loan applications initiated 90 days prior—or
the December 2016 applications—to calculate an overall closing rate
of 70 percent in March 2017 (see full report).
About the Ellie Mae Origination Insight Report
The Origination Insight Report focuses on loans that closed in a
specific month and compares their characteristics to similar loans
that closed three and six months earlier. The closing rate is
calculated on a 90-day cycle rather than on a monthly basis because
most loan applications typically take one-and-a-half to two months
from application to closing. Loans that do not close could still be
active applications or applications withdrawn by consumers or
denied for incompleteness or non-qualification.
The Origination Insight Report details aggregated anonymized
data pulled from Ellie Mae’s Encompass origination platform.
News organizations have the right to reuse this data, provided
that Ellie Mae, Inc. is credited as the source.
About Ellie Mae
Ellie Mae (NYSE:ELLI) is a leading provider of innovative
on-demand software solutions and services for the residential
mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s
Encompass® all-in-one mortgage management solution, Mavent
Compliance Service, and AllRegs research, reference and education
resources to improve compliance, loan quality and efficiency across
the entire mortgage lifecycle. Visit EllieMae.com or
call (877) 355-4362 to learn more.
© 2017 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®,
the Ellie Mae logo and other trademarks or service marks of
Ellie Mae, Inc. appearing herein are the property of Ellie Mae,
Inc. or its subsidiaries. All rights reserved. Other company and
product names may be trademarks or copyrights of
their respective owners.
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version on businesswire.com: http://www.businesswire.com/news/home/20170419005351/en/
Ellie Mae, Inc.Erica Harvill,
925-227-5913Erica.Harvill@elliemae.comorAllison+PartnersAlexandra
Gardell Kreuter, 646-428-0618EllieMae@allisonpr.com
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