Ellie Mae Releases November 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 November 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 NOVEMBER 2013
   

November 2013*
 

October 2013*
 

6 Months Ago (May 2013)*
 

1 Year Ago (November 2012)*
Closed Loans
Purpose
Refinance   45%   39%   58%   68%
Purchase   55%   61%   42%   32%
Type
FHA   20%   19%   19%   19%
Conventional   69%   68%   72%   73%
Days to Close
All   42   45   44   50
Refinance   37   43   44   51
Purchase   45   46   45   48
ARMs vs. Fixed, Length, Rate
ARM %   5.8%   5.6%   3.1%   2.0%
15 Year %   14.5%   15.5%   16.4%   16.7%
30 Year – Note Rate   4.526   4.750   3.747   3.600

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

PROFILES OF CLOSED AND DENIED LOANS FOR NOVEMBER 2013
   

Closed First-Lien Loans (All Types)
 

Denied Loans (All Types)
FICO Score (FICO)   729   694
Loan-to-Value (LTV)   81   82
Debt-to-Income (DTI)   25/38   28/44

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 August 2013 applications) to calculate an overall closing rate of 53.1% in November, up from 51.4% in October 2013 (see full report).

“Refinances increased by six percentage points in November, the first time in ten months refinance share increased on a month-over-month basis,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This was probably attributable to the quarter of a point decline in the interest rates on the 30-year note in November, which declined to 4.526.

“HARP-related refinancing activity also increased, as conventional refinances at 95%-plus LTV rose to 8.30% in November from 7.30% in October.

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