Ellie Mae Releases October 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 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™.




6 Months Ago(April 2013)*

1 Year Ago(October 2012)*
Closed Loans
Refinance     39%     42%     58%     69%
Purchase     61%     58%     42%     31%
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.


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.

“HARP-related refinancing activity cooled significantly with conventional refinances at 95%-plus LTV dropping nearly in half: from 13.4% in August 2013 and 10.3% in September 2013 to 7.3% in October 2013,” Corr concluded.

About Ellie Mae Origination Insight Report

In 2012, the total volume of mortgages that ran through Ellie Mae’s Encompass mortgage management software was approximately three 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 44% 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. (NYSE:ELLI) 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 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.

© 2013 Ellie Mae, Inc. Ellie Mae ® , Encompass ® , 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.

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