Home Purchases Represent 68 Percent of All Closed Loans According to Latest Origination Insight Report From Ellie Mae
June 21 2017 - 9:00AM
Business Wire
The percentage of purchase home loans relative to refinancings
continued to increase, 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. In May, home purchases represented
68 percent of all closed loans, a three percent increase from the
month prior.
Specifically, the percentage of Conventional purchase loans
increased to 61 percent. FHA purchase loans increased to 82 percent
and VA purchase loans increased to 73 percent.
The average 30-year note decreased for the first time in 2017 to
4.33 percent, down from 4.41 percent the prior month, but still up
from 4.06 percent from the same period last year. The percentage of
Adjustable Rate Mortgages (ARMs) on Conventional loans continued
its rise to 7.5 percent in May, up from 7.3 percent the month prior
and 5.5 percent one year ago. Additionally, the average time to
close all loans held steady at 42 days in May. The time to close a
refinance also held at 41 days and the time to close a purchase
remained at 42 days.
“The start of the peak summer homebuying period combined with
fewer refinances due to higher interest rates, drove purchases to
the largest percentage of total loans since we began tracking data
in 2011. Home loan purchases represented 68 percent of total closed
loans, a 3 percent increase from the prior month,” said Jonathan
Corr, president and CEO of Ellie Mae.
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 MAY 2017
May 2017* Apr.
2017*
6 Months Ago
1 Year Ago
(Nov. 2016*)
(May 2016*)
Closed Loans
Purpose
Refinance 32%
35% 47% 37%
Purchase 68% 65%
53% 62%
Type
FHA
23% 23% 20%
23%
Conventional
63% 63% 68%
64%
VA 10%
10% 9% 9%
Days to
Close
All
42 42
49 45
Refinance
41 41 51
44
Purchase 42
42 47 45
Percentage of ARM and Fixed Loan Volume ARM %
6.1% 5.9%
3.9% 4.5%
30-Year Rate
Average
4.33% 4.41% 3.81%
4.06%
*All references to months should be read
as month ended.
PROFILES OF CLOSED LOANS FOR MAY 2017
Closed First-Lien Loans
(All Types)
FICO Score (FICO) 723
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 February 2017 applications—to calculate an overall closing rate
of 70 percent in May 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/20170621005371/en/
Ellie Mae, Inc.Erica Harvill,
925-227-5913Erica.Harvill@elliemae.comorAlexandra Gardell
KreuterAllison+Partners, 646-428-0618EllieMae@allisonpr.com
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