June Origination Insight Report from Ellie Mae Shows Home Purchases Remained Steady at 68 Percent of All Closed Loans
PLEASANTON, Calif. – July 19, 2017 – The percentage of purchase home loans relative to refinances remained steady at 68 percent of all closed loans according to the June Origination Insight Report released by Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. The percentage of refinances remained at 32 percent for the second straight month.
Specifically, the percentage of Conventional purchase loans increased to 63 percent, up two percentage points from the prior month. FHA purchase loans decreased slightly to 81 percent, and VA purchase loans increased to 75 percent.
The average 30-year note continued to decrease to 4.27 in June, down from 4.33 in May. The percentage of Adjustable Rate Mortgages (ARMs) on all loans declined to 5.9 percent in June, down from 6.1 percent the month prior. Additionally, the average time to close all loans increased by one day to 43 days in June. The time to close a refinance held at 41 days, while the time to close a purchase increased to 43 days.
“While low inventory levels are slowing the growth of home purchases, the percentage of home loan purchases stayed steady in June, representing 68 percent of total closed loans,” said Jonathan Corr, president and CEO of Ellie Mae.
The Origination Insight Report mines its application data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.
Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker, which focuses on mortgage applications submitted by millennials during specific time periods. Ellie Mae defines millennials as applicants born between the years 1980 and 1999. The Millennial Tracker will continue to be released on the first Wednesday of each month.
MONTHLY ORIGINATION OVERVIEW FOR JUNE 2017
6 Months Ago
1 Year Ago
|Days to Close|
|Percentage of ARM and Fixed Loan Volume|
*All references to months should be read as month ended.
PROFILES OF CLOSED AND DENIED LOANS FOR JUNE 2017
|Closed First-Lien Loans (All Types)|
|FICO Score (FICO)||724|
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—or the March 2017 applications—to calculate an overall closing rate of 70 percent in June 2017 (see full report).
About the Ellie Mae Origination Insight Report
The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed 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 non-qualification.
The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass origination platform.
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 the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae’s technology solutions enable lenders to originate more loans, reduce origination costs, and shorten the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.
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