Ellie Mae Releases April Origination Insight Report
May 16 2012 - 8:00AM
Business Wire
Ellie Mae® (NYSE MKT: ELLI), a leading provider of enterprise
level, on-demand automated solutions for the residential mortgage
industry, today released its Origination Insight Report for April
2012. The report draws its data and insights from a robust sampling
of the significant volume of loan applications—more than 20% of all
originations in the U.S.—that flow through Ellie Mae’s
Encompass360® mortgage management software and Ellie Mae
Network™.
MONTHLY ORIGINATION OVERVIEW FOR APRIL
2012
April2012
March2012
3 Months Ago(January
2012)
6 Months Ago(October
2011)
Closed Loans
Purpose
Refinance 56% 61%
66% 65%
Purchase 44% 39% 34%
35%
Type
FHA 28% 28% 25%
24%
Conventional 62% 64% 67% 69%
Days to Close
All 45 42 48 43
Refinance 47 42 48 42
Purchase 43 42 47 44
ARMs Vs.
Fixed, Length, Rate
ARM % 5.1% 4.2% 4.5% 5.2%
15
Year % 18.4% 20.2% 19.1% 22.8%
30 Year – Note Rate 4.151 4.080 4.181
4.274
PROFILES OF CLOSED AND DENIED LOANS FOR
APRIL 2012
Closed First-Lien Loans(All
Types)
Denied Loans(All Types)
FICO Score (FICO) 745 702
Loan-to-Value
(LTV) 80 87
Debt-to-Income (DTI)
24/35 28/43
More information and analysis of closed and denied loans, by
loan purpose and investor, is available in the full report at
http://www.elliemae.com/aboutus/about_reports.asp.
To get a meaningful view of lender “pull-through”, Ellie Mae
reviewed a sampling of loan applications initiated 90 days prior
(i.e., the January applications) to calculate a closing rate for
April. Ellie Mae found that 48.1% of all applications closed in
April compared to 46.9% in March (see full report).
“As we move into the spring and summer buying season, there was
a significant pick up in the percentage of purchase loans: 44% in
April up from 39% in March,” said Jonathan Corr, chief operating
officer of Ellie Mae. “This is the highest level of purchase loans
activity in the last nine months.
“In April, the average loan-to-value (LTV) for closed loans hit
80%, the highest we have seen since we started tracking in August
2011,” Corr added. “The increase was driven by an easing of LTVs on
conventional refinances (the average LTV was 69% in April compared
with 65% in March) and what we believe to be the first surge in
Home Affordable Refinance Program (HARP) 2.0 activity from
correspondent lenders.
“Last month closed refinances with LTVs of 95%-plus, nearly
doubled to 7.1% compared to 3.6% in March. This has been slowly
increasing since the HARP 2.0 announcement in October 2011, but
correspondent lenders have only recently been able to run these
loans through Desktop Underwriter and Loan Prospector.”
“Recently, the Wall Street Journal and other media outlets have
been reporting that the nation’s largest retail lenders are now
quoting long timelines for refinances—in some cases as long as 60
to 90 days,” said Corr. “While the average refinance going through
our platform took five days longer in April than in March, it still
only took 47 days. So, it appears that small and mid-sized lenders
and community banks on our platform are providing faster decisions
than the retail channels of some mega-lenders.”
About Ellie Mae Origination Insight Report
In 2011, the total volume of mortgages that ran through Ellie
Mae’s Encompass360 mortgage management software was approximately
two million loan applications, or 20% of all U.S. mortgage
originations. The Origination Insight Report mines its application
data from a robust sampling of approximately 33% of all mortgage
applications that were initiated on the Encompass origination
platform. Given the size of this sample and Ellie Mae’s market
share, the Company believes the Origination Insight Report is a
strong proxy of the underwriting standards that are being employed
by lenders across the country.
The Origination Insight Report focuses on loans that closed or
were denied in a specific month and compares their characteristics
to similar loans that closed or were denied in the prior
three-month and six-month periods. The closing rate is calculated
on a 90-day cycle, rather than a monthly basis, because most loan
applications typically take one and a half months to two months
from application to closing. Loans that do not close could still be
active applications, withdrawn by consumer, or denied for
incompleteness or non-qualification.
The Origination Insight Report reports aggregated, anonymized
data and does not disclose client-specific or proprietary
information.
News organizations have the right to re-use this data, provided
that Ellie Mae, Inc. is credited as the source.
About Ellie Mae
Ellie Mae, Inc. is a leading provider of on-demand automation
solutions for the mortgage industry. The Company offers an
end-to-end solution, delivered using a Software-as-a-Service
model that serves as the core operating system for mortgage
originators and spans customer relationship management, loan
origination, and business management. The Company also hosts the
Ellie Mae Network™ that allows mortgage professionals to conduct
electronic business transactions with the lenders and settlement
service providers they work with, to process and fund loans. The
company's offerings include the Encompass®, Encompass360® and
DataTrac® mortgage management software systems.
Ellie Mae was founded in 1997 and is based in Pleasanton,
California. To learn more about Ellie Mae, visit www.EllieMae.com
or call 877.355.4362.
© 2012 Ellie Mae, Inc. Ellie Mae®, Encompass®, Encompass360®,
DataTrac®, Ellie Mae Network™ and the Ellie Mae
logo are registered trademarks or trademarks 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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