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Ellie Mae Releases October 2012 Origination Insight Report

Ellie Mae ® (NYSE: ELLI), a leading provider of enterprise-level, on-demand automated solutions for the residential mortgage industry, today released its Origination Insight Report for October 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 United States—that flow through Ellie Mae’s Encompass360 ® mortgage management software and Ellie Mae Network™.

MONTHLY ORIGINATION OVERVIEW FOR OCTOBER 2012

     

October 2012*

   

September 2012*

   

3 Months Ago (July 2012)*

   

6 Months Ago (April 2012)*

Closed Loans
Purpose
Refinance     69%     65%     58%     56%
Purchase     31%     35%     42%     44%
Type
FHA     19%     19%     24%     28%
Conventional     74%     72%     67%     62%
Days to Close
All     54     50     48     45
Refinance     57     53     48     47
Purchase     47     47     47     43
ARMs vs. Fixed, Length, Rate
ARM %     2.2%     2.6%     3.1%     5.1%
15 Year %     16.9%     17.3%     15.3%     18.4%
30 Year – Note Rate     3.671     3.773     3.870     4.151

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

PROFILES OF CLOSED AND DENIED LOANS FOR OCTOBER 2012

     

Closed First-Lien Loans (All Types)

   

Denied Loans (All Types)

FICO Score (FICO)     750     706
Loan-to-Value (LTV)     78     87
Debt-to-Income (DTI)     23/34     27/44

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/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 July applications) to calculate an overall closing rate of 54.5% in October 2012, compared to 50.5% in September 2012 (see full report).

“In October, the closing rate for refinances was 51.3%, up from 45.3% in September 2012, and the first time since we began our tracking, in August 2011, that the pull-through rate for refinances topped 50%,” said Jonathan Corr, chief operating officer of Ellie Mae. “The 30-year note rate on closed loans also hit a new low last month for our report, dropping to 3.671% in October 2012 from 3.773% in September 2012.

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