Ellie Mae Releases February 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 February 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 FEBRUARY 2013
                           
           

February 2013*
     

January 2013*
     

3 Months Ago (November 2012)*
     

6 Months Ago (August 2012)*
Closed Loans
Purpose
Refinance           68%       73%       68%       61%
Purchase           32%       27%       32%       39%
Type
FHA           20%       18%       19%       21%
Conventional           71%       74%       73%       70%
Days to Close
All           50       54       50       49
Refinance           51       55       51       51
Purchase           47       51       48       47
ARMs vs. Fixed, Length, Rate
ARM %           2.3%       2.1%       2.0%       2.7%
15 Year %           16.8%       16.9%       16.7%       16.8%
30 Year – Note Rate           3.723       3.634       3.600       3.763

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

PROFILES OF CLOSED AND DENIED LOANS FOR FEBRUARY 2013
           
       

Closed First-Lien Loans (All Types)
     

Denied Loans (All Types)
FICO Score (FICO)       745       705
Loan-to-Value (LTV)       80       85
Debt-to-Income (DTI)       23/35       27/43

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 November 2012 applications) to calculate an overall closing rate of 56.8% in February 2013, up from 55.0% in January 2013 (see full report).

“Last month, the average FICO, LTV and DTI for closed loans all showed signs of easing,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “The average FICO dropped from 749 in January 2013 to 745 in February 2013, the lowest point since May 2012. Meanwhile, the average loan-to-value hit 80% for the first time since July 2012 and the backend debt-to-income ratio was 35% for the first time since June 2012––suggesting that the credit box may be expanding.

“The purchase market is strengthening as the run-up begins for the spring buying season, rising from 27% of all closed loans in January 2013 to 32% in February 2013.” Corr continued, “Time to close improved considerably, dropping to 50 days in February 2013 from 54 days in January 2013.”

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