January Origination Insight Report from Ellie Mae Shows Refinances Represented 35 Percent of All Closed Loans

PLEASANTON, Calif.–(BUSINESS WIRE)–According to the January Origination
Insight Report
from Ellie
Mae
® (NYSE:ELLI), the leading cloud-based platform
provider for the mortgage finance industry, the percentage of refinances
increased to 35 percent in January, up from 29 percent in December of
2018. FHA refinances increased to 21 percent in January, up from 18
percent the month prior and Conventional refinances increased to 35
percent, up from 31 percent the month prior.

“The increase in refinances in January is likely due to seasonality with
lower purchase volume tied to the holiday season as well a modest drop
in rates from November and December,” said Jonathan Corr, president and
CEO of Ellie Mae. “We anticipate that as we move into the traditionally
busier spring months, the percentage of home purchases will increase
relative to refinances.”

Other statistics of note in January included:

  • The time to close all loans dropped to 45 days in January, down from
    47 days in December. Time to close a purchase loan increased to 48
    days, while time to close a refinance dropped to 38 days.
  • The 30-year note rate dropped from 5.17 percent in December to 5.01
    percent in January.
  • The percentage of Adjustable Rate Mortgages (ARMs) decreased from 9.2
    percent in December to 8.6 percent in January.
  • Overall FICO scores dropped two points from 726 in December to 724 in
    January. LTV decreased to 77 and DTI held at 26/39.

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 JANUARY 2019

Jan. 2019* Dec. 2018* 6 Months Ago 1 Year Ago
            (Jul. 2018*)   (Jan. 2018*)
Closed Loans
Purpose
Refinance   35%   29%   29%   45%
Purchase   65%   71%   71%   55%
Type
FHA   19%   20%   20%   19%
Conventional   66%   64%   66%   67%
VA   11%   11%   10%   10%
Days to Close
All   45   47   43   44
Refinance   38   44   41   40
Purchase   49   47   44   47
Percentage of ARM and Fixed Loan Volume
ARM %   8.6%   9.2%   6.6%   5.5%
30-Year Rate
Average   5.010%   5.170%   4.910%   4.330%

*All references to months should be read as month ended.

 

PROFILES OF CLOSED LOANS FOR JANUARY 2019

  Closed First-Lien Loans
    (All Types)
FICO Score (FICO)   724
Loan-to-Value (LTV)   77
Debt-to-Income (DTI)   26/39
 

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 October
2018 applications—to calculate an overall closing rate of 75.0 percent
in January 2019 (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, 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, 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.

© 2019 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®,
Velocify®, 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.

Contacts

Erica Harvill
Ellie Mae, Inc.
(925) 227-5913
Erica.Harvill@elliemae.com

Caitlin
Coffee
Allison+Partners
(312) 635-8204
EllieMae@allisonpr.com

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