ICE Mortgage TechnologyTM, a leading global provider of data,
technology and market infrastructure, today shared that the time to
close all loans decreased over the first quarter of 2021, from 58
days in January to 52 days in March, according to the March
Origination Insight Report. Time to close all purchase loans
decreased over the quarter, from 57 days in January, to 53 days in
February, and down to 51 days in March. Refinances saw similar
decreases in days-to-close, falling from 59 days in January, to 52
in both February and March.
“We’re seeing a compelling reduction in the time to close a
mortgage as we continue into 2021,” said Joe Tyrrell, president of
ICE Mortgage Technology. “Part of the reason is lenders are
continuing to adopt digital mortgage tools to improve their loan
origination process and serve homebuyers more efficiently, for
example eClose, which makes for a more streamlined process that
saves time, and that shift is showing up in the data.”
Closing rates increased slightly for the month on all loans
increasing from 76.4 percent in February to 77.9 percent in March
and closing rates on refinances increased from 76.3 percent to 78.0
percent month-over-month. Closing rates on purchases increased from
77.1 to 78.1 percent, respectively.
The percentage of refinances dropped from 68 percent of all
closed loans in February to 63 percent of all closed loans in
March. The percentage of purchases increased to 36 percent of total
closed loans for the month of March, up from 32 percent the month
prior.
“After months of near record numbers of refinances, it is clear
that the pandemic has shifted how people view their homes and in
doing so, prompted homeowners to refinance, often in order to
access the equity,” said Tyrrell. “As we enter the summer home
buying months, if we continue to see higher than normal refinance
volumes, as some homeowners commit to staying in their current
homes, it will mean new buyers face an even more competitive
purchase market driven by tight supply.”
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 MARCH
2021
March 2021*
February
2021*
6 Months Ago
(September 2020*)
1 Year Ago
(March 2020*)
Closed Loans
Purpose
Refinance
63%
68%
58%
55%
Purchase
36%
32%
42%
45%
Type
FHA
9%
8%
10%
13%
Conventional
83%
84%
80%
76%
VA
3%
5%
6%
7%
Days to Close
All
52
53
51
40
Refinance
52
52
54
35
Purchase
51
53
47
45
Percentage of ARM and Fixed Loan
Volume
ARM %
2.4%
2.3%
2.5%
3.2%
30-Year Rate
Average
2.99%
2.89%
3.00%
3.65%
*All references to months should be read
as month ended.
PROFILES OF CLOSED LOANS FOR MARCH
2021
Closed First-Lien Loans (All
Types)
FICO Score (FICO)
751
Loan-to-Value (LTV)
71
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
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 December 2020 applications—to calculate an overall closing rate
of 77.9 percent in March 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.
ICE Mortgage Technology combines technology, data and expertise
to automate the entire mortgage process from consumer engagement
through loan registration and every step and task in between. 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.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500
company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate exchanges,
including the New York Stock Exchange, and clearing houses that
help people invest, raise capital and manage risk across multiple
asset classes. Our comprehensive fixed income data services and
execution capabilities provide information, analytics and platforms
that help our customers capitalize on opportunities and operate
more efficiently. At ICE Mortgage Technology, we are transforming
and digitizing the U.S. residential mortgage process, from consumer
engagement through loan registration. Together, we transform,
streamline and automate industries to connect our customers to
opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for certain
products covered by the EU Packaged Retail and Insurance-based
Investment Products Regulation can be accessed on the relevant
exchange website under the heading “Key Information Documents
(KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2020, as
filed with the SEC on February 4, 2021.
© 2021 Ellie Mae, Inc., doing business as ICE Mortgage
Technology. All rights reserved. Encompass® and the ICE Mortgage
Technology logo are trademarks of the entities of ICE Mortgage
Technology.
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20210427005408/en/
Sara Holtz ICE Mortgage Technology (925) 227-2193
sara.holtz@ice.com
Jenny Gendron ICE Mortgage Technology (925) 437-9118
jenny.gendron@ice.com
Caitlin Coffee Allison+Partners (312) 635-8204
ICEMortgageTechnology@allisonpr.com
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