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Ellie Mae Releases October 2013 Origination Insight Report

Stocks in this article: ELLI

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 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 Encompass ® mortgage management software and the Ellie Mae Network™.

MONTHLY ORIGINATION OVERVIEW FOR OCTOBER 2013

     

October 2013*

   

September 2013*

   

6 Months Ago (April 2013)*

   

1 Year Ago (October 2012)*

Closed Loans
Purpose
Refinance     39%     42%     58%     69%
Purchase     61%     58%     42%     31%
Type
FHA     19%     19%     22%     19%
Conventional     68%     70%     68%     74%
Days to Close
All     45     42     46     54
Refinance     43     40     47     57
Purchase     46     43     44     47
ARMs vs. Fixed, Length, Rate
ARM %     5.6%     5.5%     3.2%     2.2%
15 Year %     15.5%     15.5%     15.3%     16.9%
30 Year – Note Rate     4.750     4.761     3.808     3.671

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

PROFILES OF CLOSED AND DENIED LOANS FOR OCTOBER 2013

     

Closed First-Lien Loans (All Types)

   

Denied Loans (All Types)

FICO Score (FICO)     732     689
Loan-to-Value (LTV)     81     83
Debt-to-Income (DTI)     25/38     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 July 2013 applications) to calculate an overall closing rate of 51.4%, down from 52.3% in September 2013 (see full report).

“In October 2013, the share of purchase loans climbed to 61%, the highest since we began tracking in August 2011. In October 2012, purchase loans represented only 31% of closed loans,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This has been the ninth consecutive month that the purchase loan percentage has either increased or stayed steady.

“The average FICO scores for closed loans last month remained at 732, but this was significantly lower than the average of 750 in October 2012,” added Corr. “Similarly, debt-to-income ratios rose for the fourth month in a row, from 25/37 in September 2013 to 25/38 in October 2013.

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