September Origination Insight Report from Ellie Mae Shows Refinances Increase as Interest Rates Dip to 2017 Low
October 18 2017 - 09:00AM
Business Wire
The percentage of refinances climbed to 38 percent of total
loans as interest rates dipped to 4.21 percent, the lowest rate in
2017, according to the September Origination Insight Report from
Ellie Mae® (NYSE:ELLI), the leading cloud-based platform provider
for the mortgage finance industry. Time to close a refinance also
dropped to 40 days, the shortest time to close a refinance since
February 2015.
“The increase in refinances was most likely due to interest
rates on closed loans dipping to 4.21 percent, the low for 2017,”
said Jonathan Corr, president and CEO of Ellie Mae. “Additionally,
time to close a refinance dropped to 40 days as more lenders
leverage technology to close loans faster.”
Other statistics of note in September included:
- The percentage breakdown of all closed
loans shifted slightly as conventional loans rose to 66 percent,
FHA loans shrank to 20 percent and VA loans held steady at 10
percent.
- The average FICO score on all closed
loans remained steady at 724 in September, as did FHA refinance
FICO scores at 649. FHA purchase FICO scores dropped one point to
682. Conventional refinance FICO scores rose one point to 731 and
conventional purchase FICO scores held at 752. VA refinance FICO
scores dropped a point to 701 and VA purchase FICO scores also
dropped a point to 709.
- Closing time for all loans increased to
43 days in September, up from 42 days the month prior.
- The percentage of ARMs dipped to 5.5
percent, down from 5.7 percent in August.
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
SEPTEMBER 2017
Sep. 2017*
Aug. 2017*
6 MonthsAgo(Mar.
2017*)
1 Year Ago(Sep. 2016*)
Closed Loans Purpose Refinance 38%
35% 37% 45%
Purchase 62%
65% 63% 54%
Type FHA 20%
22% 23% 20%
Conventional 66% 64%
63% 68%
VA 10% 10% 10%
9%
Days to Close All 43 42
43 48
Refinance 40 41 43
50
Purchase 44 43 43 47
Percentage of ARM and Fixed Loan Volume ARM %
5.5% 5.7% 5.6% 4.0%
30-Year Rate
Average 4.21% 4.27% 4.39% 3.75%
*All references to months should be read as month ended.
PROFILES OF CLOSED LOANS FOR SEPTEMBER
2017
Closed First-Lien Loans (All
Types) FICO Score (FICO) 724
Loan-to-Value
(LTV) 79
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 June 2017 applications—to calculate an overall closing rate of
71.6 percent in September 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 reduce 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/20171018005324/en/
Ellie Mae, Inc.Erica Harvill,
925-227-5913Erica.Harvill@elliemae.comorAllison+PartnersAlexandra
Gardell Kreuter, 646-428-0618EllieMae@allisonpr.com
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