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.

“The combination of record low interest rates and higher refinance closing rates pushed out the average time to close on a month-over-month basis from 53 days to 57 days for refinances,” Corr noted.

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 three and six months earlier. 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 nonqualification.

The Origination Insight Report details aggregated, anonymized data and does not disclose client-specific or proprietary information.

News organizations have the right to reuse 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 Encompass ® users to electronically conduct 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.

Copyright Business Wire 2010

If you liked this article you might like

Time to Raise Some Cash: Cramer's 'Mad Money' Recap (Tuesday 8/1/17)

Time to Raise Some Cash: Cramer's 'Mad Money' Recap (Tuesday 8/1/17)

Market Recon: This Barbarous Relic Has Been Seriously Hot Lately

Market Recon: This Barbarous Relic Has Been Seriously Hot Lately

Jim Cramer's Top Takeaways: MGM Resorts, Lululemon, Elli Mae, Ollie's Bargain Outlet

Jim Cramer's Top Takeaways: MGM Resorts, Lululemon, Elli Mae, Ollie's Bargain Outlet

Jim Cramer's 'Mad Money' Recap: How the 'Trump Effect' Has Spurred Stocks

Jim Cramer's 'Mad Money' Recap: How the 'Trump Effect' Has Spurred Stocks

Analysts' Actions -- Freeport, First Solar, Lowe's, Urban Outfitters and More

Analysts' Actions -- Freeport, First Solar, Lowe's, Urban Outfitters and More