January Origination Insight Report from Ellie Mae Shows Refinances Represented 35 Percent of All Closed Loans
February 20 2019 - 8:00AM
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190220005292/en/
Erica HarvillEllie Mae, Inc.(925)
227-5913Erica.Harvill@elliemae.comCaitlin
CoffeeAllison+Partners(312) 635-8204EllieMae@allisonpr.com
Ellie Mae, Inc. (NYSE:ELLI)
Historical Stock Chart
From Apr 2024 to May 2024
Ellie Mae, Inc. (NYSE:ELLI)
Historical Stock Chart
From May 2023 to May 2024