PLEASANTON, Calif.,
Sept. 16, 2020 /PRNewswire/
-- Refinances rebounded slightly in August, representing the
majority of closed loans in August at 56 percent, up from 54
percent in July, according to the latest Origination Insight
Report from Ellie Mae®, the leading cloud-based
loan origination platform provider for the mortgage
industry and now part of Intercontinental Exchange, Inc.
(NYSE: ICE). The percentage of purchases dipped to 44 percent in
August, down from 46 percent the month prior.
This comes as the 30-year rate on all loans continued to fall to
3.09 percent, now the lowest rate since Ellie Mae began tracking
this data and down from 3.24 percent the month prior. The 30-year
note rate VA loans fell below 3 percent to 2.86 percent in August,
down from 3.02 percent in July. The 30-year note rate on
conventional loans fell to 3.12 percent in August, down from 3.26
percent in July. Similarly, the 30-year rate on FHA loans fell to
3.10 percent in August, down from 3.26 percent in July.
Other statistics of note in August included:
- The time to close all loans increased to 49 days in August, up
from 47 days the month prior. Time to close for purchase loans
increased to 45 days in August, up from 44 days in July and time to
close for refinances increased to 51 days in August, up from 50 the
month prior.
- FICO scores continued to increase to 2020 highs, rising to 752
for all loans, up from 750 the month prior.
- Closing rates increased slightly to 77.2 in August, up from
77.1 percent in July.
"Interest rates are at historic lows, driving volume across both
purchases and refinances. In August of 2019 we saw 30-year rates
just over four percent across all loans, while this month we're
seeing average rates almost one percentage point lower. Not only
does this enable homebuyers to get more home for their dollar, it
allows new homebuyers who might be waiting for a good deal to enter
the market," said Joe Tyrrell, chief
operating officer, Ellie Mae. "As lenders continue to manage high
volumes, technology is bridging the gap to add efficiency to manual
workflows behind the scenes while freeing up workforces to provide
the human interaction that homebuyers demand."
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.
Ellie Mae also offers Ellie Mae Insights™, the only analytics
solution in the market that provides peer benchmarking comparison
analysis in near real time. Ellie Mae Insights analyzes key metrics
such as efficiency levels, operational costs, rates and market
penetration, demographic data and pull through rates to help
lenders of all sizes to make informed decisions.
MONTHLY ORIGINATION OVERVIEW FOR AUGUST 2020
|
August
2020*
|
July
2020*
|
6 Months
Ago
(February
2020*)
|
1 Year
Ago
(August
2019*)
|
Closed
Loans
|
Purpose
|
Refinance
|
56%
|
54%
|
51%
|
43%
|
Purchase
|
44%
|
46%
|
49%
|
57%
|
Type
|
FHA
|
11%
|
11%
|
14%
|
17%
|
Conventional
|
79%
|
79%
|
74%
|
69%
|
VA
|
6%
|
6%
|
8%
|
10%
|
Days to
Close
|
All
|
49
|
47
|
43
|
42
|
Refinance
|
50
|
50
|
40
|
39
|
Purchase
|
45
|
44
|
45
|
45
|
Percentage of ARM
and Fixed Loan Volume
|
ARM
%
|
2.8%
|
3.0%
|
5.3%
|
5.3%
|
30-Year
Rate
|
Average
|
3.09%
|
3.24%
|
3.86%
|
4.07%
|
*All references to
months should be read as month ended.
|
PROFILES OF CLOSED LOANS FOR AUGUST
2020
|
Closed First-Lien
Loans
(All Types)
|
FICO Score
(FICO)
|
752
|
Loan-to-Value
(LTV)
|
74
|
Debt-to-Income
(DTI)
|
23/35
|
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 May 2020 applications—to
calculate an overall closing rate of 77.2 percent in August 2020 (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. 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 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 is the leading cloud-based
loan origination platform provider for the mortgage industry. Ellie
Mae's technology solutions 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 EllieMae.com or call (877)
355-4362 to learn more.
© 2020 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®,
Mavent®, Velocify®, Capsilon®, 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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SOURCE Ellie Mae