January ICE Mortgage Technology Origination Insight Report Shows Continued Refinance Market Growth as Interest Rates Further ...
February 17 2021 - 9:00AM
Business Wire
Interest rates on all closed loans continued to decline in
January to 2.88 percent, down from 2.93 percent in December,
according to the latest Origination Insight Report from ICE
Mortgage Technology™, a division of Intercontinental Exchange, Inc.
(NYSE: ICE) and the leading cloud-based loan origination platform
provider for the mortgage industry.
Declining interest rates were seen across all loan types in
January. The 30-year rate on conventional loans continued its
steady decline, dropping to 2.91 percent from 2.96 percent in
December. Similarly, the 30-year rate on FHA loans fell to 2.86
percent in January, down from 2.94 percent in December. The 30-year
rate on VA loans dropped to 2.60 percent in January, down from 2.66
percent in December.
As rates dropped, the percentage of refinances continued to
increase, representing 67 percent of closed loans, up from 60
percent in December 2020.
Other statistics of note in January included:
- The time to close all loans held steady at 58 days from
December to January
- Average FICO scores on all loans slightly increased, returning
to 752 after dipping to 751 in December
- Conventional refinance FICO scores increased to 764 on average,
up from 763 in December
“Interest rates continued to decline in January, driving up the
share of refinances by seven percent,” said Joe Tyrrell, president
of ICE Mortgage Technology. “We’re continuing to keep an eye on
average FICO scores as many lenders tighten credit during this time
of rising loan volume. We continue to see growth on our Encompass
Lending Platform, indicating that our lenders are utilizing digital
mortgage technology to serve their customers and close these record
number of loans as quickly as possible.”
The Origination Insight Report leverages data from a robust
sampling of approximately 80 percent of all mortgage applications
that were initiated on the Encompass® Lending Platform. ICE
Mortgage Technology 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, ICE Mortgage
Technology also distributes data from its monthly Millennial
Tracker on the first Wednesday of each month. The Millennial
Tracker focuses on mortgage applications submitted by borrowers
born between the years 1980 and 1999.
MONTHLY ORIGINATION OVERVIEW FOR JANUARY 2021
January 2021*
December
2020*
6 Months Ago
(July 2020*)
1 Year Ago
(January 2020*)
Closed Loans
Purpose
Refinance
67%
60%
54%
50%
Purchase
32%
39%
46%
50%
Type
FHA
9%
10%
11%
16%
Conventional
84%
81%
79%
71%
VA
5%
6%
6%
8%
Days to Close
All
58
58
47
48
Refinance
59
59
50
48
Purchase
57
56
44
48
Percentage of ARM and Fixed Loan
Volume
ARM %
2.3%
2.4%
3.0%
6.3%
30-Year Rate
Average
2.88%
2.93%
3.24%
3.96%
*All references to months should be read as month ended.
PROFILES OF CLOSED LOANS FOR JANUARY 2021
Closed First-Lien Loans (All
Types)
FICO Score (FICO)
752
Loan-to-Value (LTV)
71
Debt-to-Income (DTI)
23/34
More information and analysis of closed and denied loans by loan
purpose and investor are available in the full report at
https://www.icemortgagetechnology.com/mortgage-data/origination-insight-reports.
To get a meaningful view of lender pull-through, the company
reviewed a sampling of loan applications initiated 90 days prior—or
the October 2020 applications—to calculate an overall closing rate
of 76.2 percent in January 2021 (see full report).
About the Origination Insight Report by ICE Mortgage
Technology
The Origination Insight Report focuses on loans that closed in a
specific month and compares their characteristics to similar loans.
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, de-identified
data pulled from the Encompass origination platform.
News organizations have the right to reuse this data, provided
that ICE Mortgage Technology is credited as the source.
About ICE Mortgage Technology
ICE Mortgage Technology, a division of Intercontinental
Exchange, Inc. (NYSE: ICE), combines the innovation and expertise
of Ellie Mae, Simplifile and MERS to automate the entire mortgage
process from consumer engagement through loan registration and
every step and task in between. Ellie Mae, as part of ICE Mortgage
Technology, is the leading cloud-based loan origination platform
provider for the mortgage industry with solutions that enable
lenders to originate more loans, lower origination costs, and
reduce the time to close, all while ensuring the highest levels of
compliance, quality, and efficiency. Visit
icemortgagetechnology.com or call (877) 355-4362 to learn more.
© 2021 Ellie Mae, Inc., doing business as ICE Mortgage
Technology. All rights reserved. Encompass®, Millennial Tracker™,
and the ICE Mortgage Technology logo are trademarks of the entities
of ICE Mortgage Technology.
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version on businesswire.com: https://www.businesswire.com/news/home/20210217005338/en/
Sara Holtz ICE Mortgage Technology (925) 227-2193
sara.holtz@elliemae.com
Caitlin Coffee Allison+Partners (312) 635-8204
EllieMae@allisonpr.com
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