Ellie Mae Releases September 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 September 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 the Ellie Mae Network™.

MONTHLY ORIGINATION OVERVIEW FOR SEPTEMBER 2013
 
        September 2013*       August 2013*       6 Months Ago

(March 2013)*
      1 Year Ago

(September 2012)*
Closed Loans                                
Purpose                                
Refinance       42 %       43 %       62 %       65 %
Purchase       58 %       57 %       38 %       35 %
Type                                
FHA       19 %       18 %       21 %       19 %
Conventional       70 %       70 %       70 %       72 %
Days to Close                                
All       42         41         46         50  
Refinance       40         41         47         53  
Purchase       43         42         44         47  
ARMs vs. Fixed, Length, Rate
ARM %       5.5 %       5.9 %       2.5 %       2.6 %
15 Year %       15.5 %       14.6 %       15.9 %       17.3 %
30 Year – Note Rate       4.761         4.618         3.813         3.773  

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

PROFILES OF CLOSED AND DENIED LOANS FOR SEPTEMBER 2013
 
       

Closed First-Lien Loans

(All Types)
      Denied Loans

(All Types)
FICO Score (FICO)       732       696
Loan-to-Value (LTV)       81       84
Debt-to-Income (DTI)       25/37       28/45

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 June 2013 applications) to calculate an overall closing rate of 52.3% in September 2013, down from 53.1% in August 2013 (see full report).

“The share of purchase loans continued to grow in September 2013, climbing 1% to 58% of all loans even in the face of higher interest rates and seasonality,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This was the eighth consecutive month that the purchase loan percentage has increased or stayed steady. In January 2013, purchases represented only 27% of closed loans.

“The credit standards also continued to ease in September with average FICO scores for closed loans dropping to 732 compared to 734 in August. September’s averages were 15 points below where they were at the beginning of the year (January 2013) and the lowest level since we began our tracking in August 2011,” noted Corr. “When you drill down farther, the change is even more apparent. For example, 31% of the closed loans in September 2013 had FICO scores under 700 compared to 17.46% of closed loans in September 2012.

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