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Ellie Mae Releases May 2013 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 May 2013. 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 MAY 2013
    May 2013*   April 2013*  

3 Months Ago (February 2013)*
 

6 Months Ago (November 2012)*
Closed Loans
Purpose
Refinance   58%   58%   68%   68%
Purchase   42%   42%   32%   32%
Type
FHA   19%   22%   20%   19%
Conventional   72%   68%   71%   73%
Days to Close
All   44   46   50   50
Refinance   44   47   51   51
Purchase   45   44   47   48
ARMs vs. Fixed, Length, Rate
ARM %   3.1%   3.2%   2.3%   2.0%
15 Year %   16.4%   15.3%   16.8%   16.7%
30 Year – Note Rate   3.747   3.808   3.723   3.600

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

 
   

PROFILES OF CLOSED AND DENIED LOANS FOR MAY 2013
   

Closed First-Lien Loans (All Types)
 

Denied Loans (All Types)
FICO Score (FICO)   743   701
Loan-to-Value (LTV)   79   84
Debt-to-Income (DTI)   23/35   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/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 (i.e., the February 2013 applications) to calculate an overall closing rate of 53.5% in May 2013, up slightly from 53.2% in April 2013 (see full report).

“On a month-over-month basis, the market in May mirrored April, and credit quality, as measured by FICO, LTV and DTI, continued its slow loosening that started in January 2013,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “The refinance-to-purchase mix stayed at 58% vs. 42%.”

“The average interest rate on a 30-year loan was 3.747 in May, down from 3.808 in April. An interest rate dip often prompts borrowers and lenders to lock in their refinance rates and close,” Corr noted. “While this probably factored into the steady pull-through rate in May, it didn’t affect days to close, which registered their lowest point this year (44 days in May).”

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