Ellie Mae Releases February 2014 Origination Insight Report

The Share of Purchase Loans Rises Sharply and Time to Close Decreases

PLEASANTON, Calif. – March 19, 2014 – 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 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™.


6 Months Ago
(August 2013)*
1 Year Ago
(February 2013)*
Closed Loans
Refinance 43% 47% 43% 68%
Purchase 57% 53% 57% 32%
FHA 22% 21% 18% 20%
Conventional 65% 67% 70% 71%
Days to Close
All 41 45 41 50
Refinance 40 44 41 51
Purchase 42 47 42 47
ARMs vs. Fixed, Length, Rate
ARM % 6.9% 7.2% 5.9% 2.3%
15 Year % 13.3% 15.0% 14.6% 16.8%
30 Year – Note Rate 4.655 4.723 4.618 3.723
*All references to months should be read as month ended.


  Closed First-Lien Loans (All Types) Denied Loans
(All Types)
FICO Score (FICO) 724 689
Loan-to-Value (LTV) 82 82
Debt-to-Income (DTI) 25/38 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 November 2013 applications) to calculate an overall closing rate of 55.3% in February 2014, up from 54.9% in January 2014 (see full report).

“The share of purchase loans jumped four percentage points, representing 57% of all closed loans in February 2014,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This is the first time in four months that the share of purchase loans increased month over month and the largest one-month increase since August 2013, when the share of purchase loans also jumped four percentage points.

“The average time to close a loan dropped from 45 days in January 2014 to 41 days in February 2014,” Corr noted.

“Credit requirements remained steady month over month, but there has been significant loosening compared to where we were a year ago. The average FICO score on all closed loans was 724 in February 2014 compared to 745 in February 2013, or a 21-point decrease. Last month, 33% of closed loans had an average FICO score under 700 compared to 24% in February 2013.

“In February, the average 30-year note rate fell for the first time in three months to 4.655. And correspondingly, the percentage of ARM loans decreased for the first time in five months, representing 6.9% of closed loans. However, this was still higher than the 2013 average ARM share of 4.2%.”

About 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% 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.

© 2014 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.


Bill Campbell
Campbell Lewis Communications

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