July Origination Insight Report from Ellie Mae Sees Slight Increase in Refinance Loans with Dip in Interest Rates
August 16 2017 - 9:00AM
Business Wire
Reversing a two-month dip, the percentage of refinance home
loans increased three points to 35 percent of all closed loans,
according to the July Origination Insight Report from Ellie Mae®
(NYSE:ELLI), the leading cloud-based platform provider for the
mortgage finance industry.
“The market has been shifting from refis to purchases but we saw
a pick-up in refinancing with lower rates,” said Jonathan Corr,
president and CEO of Ellie Mae. “Overall, closing rates rose in
July and Purchase loan closing rates increased to 76.2
percent.”
Other statistics of note in July include:
- On average, the 30-year note rate
dropped to 4.25, down from 4.41 in April. It is now at its lowest
level since January 2017.
- While the average FICO score on all
closed loans remained steady at 724 in July, average FICO scores
for Conventional purchase loans decreased one point to 753. The
average FICO score for closed Conventional refinance loans in July
increased to 730, up from 729 in June.
- Closing time for all loans remained
flat at 43 days in July. Time to close a refinance increased to 42
days, up from 41 days the month prior. Time to close a purchase
loan remained at 43 days in July.
The Origination Insight Report mines 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.
In addition to the Origination Insight Report, Ellie Mae also
distributes data from its monthly Ellie Mae Millennial Tracker on
the first Wednesday of each month. The Ellie Mae Millennial Tracker
focuses on mortgage applications submitted by borrowers born
between the years 1980 and 1999.
MONTHLY ORIGINATION OVERVIEW FOR JULY
2017
Jul. 2017* Jun 2017* 6
Months Ago
(Jan. 2017*)
1 Year Ago
(Jul. 2016*)
Closed Loans Purpose Refinance 35%
32% 47% 37%
Purchase 65%
68% 53% 62%
Type FHA 22%
22% 21% 23%
Conventional 64% 64%
66% 65%
VA 10% 10% 9%
9%
Days to Close All 43 43
51 46
Refinance 42 41 53
48
Purchase 43 43 48 46
Percentage of ARM and Fixed Loan Volume ARM %
5.7% 5.9% 5.4% 4.5%
30-Year Rate
Average
4.25% 4.27% 4.31% 3.87%
*All references to months should be read as month ended.
PROFILES OF CLOSED LOANS FOR JULY
2017
Closed First-Lien Loans (All Types)
FICO Score (FICO) 724
Loan-to-Value (LTV)
80
Debt-to-Income (DTI) 25/38
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 April 2017 applications—to calculate an overall closing rate of
70.6 percent in July 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 the leading cloud-based platform
provider for the mortgage finance industry. Ellie Mae’s technology
solutions enable lenders to originate more loans, reduce
origination costs, and shorten the time to close, all while
ensuring the highest levels of compliance, quality and efficiency.
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/20170816005169/en/
Ellie Mae, Inc.Erica Harvill,
925-227-5913Erica.Harvill@elliemae.comorAllison+PartnersAlexandra
Gardell Kreuter, 646-428-0618EllieMae@allisonpr.com
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