Ellie Mae Releases June 2014 Origination Insight Report

Ellie Mae ® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry, today released its Origination Insight Report for June 2014. The report draws its data and insights from a robust sampling of the significant volume of loan applications that flow through Ellie Mae’s Encompass ® mortgage management software and the Ellie Mae Network™.

  June   May   6 Months Ago   1 Year Ago
2014* 2014*

(June 2013)*


Closed Loans
Refinance   33%   33%   46%   51%
Purchase   65%   66%   54%   49%
FHA   21%   22%   20%   19%
Conventional   65%   64%   69%   71%
VA   10%   9%   -   -
Days to Close
All   41   40   43   47
Refinance   39   39   40   47
Purchase   42   40   46   46
ARMs vs. Fixed, Length, Rate
ARM %   7.2%   7.6%   6.6%   4.0%
15 Year %   9.0%   9.7%   15.1%   16.5%

Note Rate
  4.421%   4.530%   4.592%   3.918%

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

Closed First-Lien Loans Denied Loans
    (All Types)   (All Types)
FICO Score (FICO)   728   686
Loan-to-Value (LTV)   82   82
Debt-to-Income (DTI)   24/37   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 March 2014 applications) to calculate an overall closing rate of 60.7 percent in June 2014, up from 57.8 percent in May 2014 (see full report).

“For the first time since we began tracking this data in August 2011, the pull-through closing rate eclipsed the 60 percent mark,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This was nearly three percentage points higher than May’s rate and five points higher than where we were in April. Clearly, lenders are working harder than ever to convert and close loans.

“Average 30-year rates for FHA, conventional and VA loans declined to their lowest levels this year. The average 30-year rate for all closed loans was 4.421 percent, down more than a tenth of one percent from May and the lowest since July 2013 (4.357 percent),” added Corr.

“While the market continued to be heavily purchase oriented in June, the decline in interest rates may have contributed to the slight shift in the purchase/refinance mix in June. It may also have prompted more borrowers to select 30-year fixed rate mortgages, which may be why the percentage of 15-year loans hit their lowest point for the year last month.

“The average time to close a loan increased for the third straight month, rising slightly to 41 days,” Corr noted.

About the Ellie Mae Origination Insight Report

In 2013, approximately 3.5 million loan applications ran through Ellie Mae's Encompass mortgage management solution. The Origination Insight Report mines its application data from a robust sampling of approximately 57 percent 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 (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Ellie Mae’s all-in-one Encompass® mortgage management solution provides one system of record that allows banks, credit unions and mortgage lenders to originate and fund mortgages and improve compliance, loan quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.

© 2014 Ellie Mae, Inc. Ellie Mae ® , Encompass ® , DataTrac ® , Ellie Mae Network, Total Quality Loan™, TQL™ 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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