Press Release

Lenders' Purchase Volume Share Continues to Rise, According to Latest Ellie Mae Origination Insight Report

PLEASANTON, Calif. – June 17, 2015 – Purchase loans as a percentage of lenders' overall mortgage volume eclipsed 50 percent in April, according to the latest 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.

According to the latest report, the average 30-year rate on all closed loans fell slightly for the first time since February, from 4.062% to 4.013%.

“Our May data reflects a home buying season in full swing,” said Jonathan Corr, president and CEO of Ellie Mae. “While the share of purchase loan volume is lower than it was one year ago, lower mortgage rates has given some help to refinancing volumes and share.”

The Origination Insight Report mines its application data from a robust sampling of approximately 66 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.

Other findings of the May report:

  • The overall closing rate for purchase loans climbed to 68.2 percent, the highest since January and almost 5% higher than the 2014 average.
  • The average closing period for all loans rose from 45 to 46 days.
MONTHLY ORIGINATION OVERVIEW FOR MAY 2015
  May
2015*
April
2015*
6 Months Ago
(Nov. 2014)*
1 Year Ago
(May 2014)*
Closed Loans
Purpose
Refinance 42% 47% 45% 33%
Purchase 58% 52% 54% 66%
Type
FHA 24% 24% 17% 22%
Conventional 63% 64% 68% 64%
VA 10% 9% 11% 9%
Days to Close
All 46 45 39 40
Refinance 49 48 37 39
Purchase 43 43 41 40
Percentage of ARM & Fixed Loans
ARM % 4.7% 4.5% 6.1% 7.6%
15 Year % 9.8% 10.3% 10.3% 9.7%
30-Year Rate
Average 4.013% 4.062% 4.273% 4.530%

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

PROFILES OF CLOSED AND DENIED LOANS FOR MAY 2015
  Closed First-Lien Loans (All Types) Denied Loans
(All Types)
FICO Score (FICO) 730 669
Loan-to-Value (LTV) 81 84
Debt-to-Income (DTI) 24/37 28/46

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 February 2015 applications—to calculate an overall closing rate of 64.0 percent in May 2015 (see full report).

About the Ellie Mae Origination Insight Report

The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that are initiated through Ellie Mae's Encompass all-in-one mortgage management solution. In 2014, approximately 3.7 million loan applications ran through Encompass. 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 non-qualification.

The Origination Insight Report details aggregated anonymized data. The report 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 Encompass® all-in-one 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.

PRESS CONTACTS

Erica Harvill
Ellie Mae, Inc.
(925) 227-5913
Erica.harvill@elliemae.com

Warren Lutz
Strategic Vantage Marketing & Public Relations
(925) 899-9773
WarrenLutz@StrategicVantage.com

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