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Mortgage Refinance Share Rose Further in February, According to Ellie Mae Origination Insight Report
Average refinance days to close drops to shortest time since Ellie Mae began tracking data in 2011
PLEASANTON, Calif. – March 18, 2015 – Mortgage refinancing as a share of overall loan volume jumped 8 percent in February to comprise 59 percent of lenders’ loan volume, 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. Meanwhile, the average time to close a refi loan fell to 36 days, the lowest level since Ellie Mae began tracking this data in August 2011.
The average interest rate for a 30-year fixed rate mortgage fell from 4.154% to 4.008%, the lowest level in two years, according to Ellie Mae’s data. The average interest rate for 30-year fixed FHA loans fell below 4% for the first time since June 2013.
“The drop in the average 30-year fixed rate in last few months has kept lenders busy with increased refinance business,” said Jonathan Corr, president and CEO of Ellie Mae. “Considering the demand, the fact that lenders are taking fewer days to close the average refi loan is very good news.”
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® origination platform. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.
MONTHLY ORIGINATION OVERVIEW FOR FEBRUARY 2015
6 Months Ago
1 Year Ago
|Days to Close|
|ARMs vs. Fixed, Length, Rate|
|15 Year %||11.1%||10.8%||9.1%||13.3%|
|30 Year – Note Rate||4.008%||4.154%||4.386%||4.655%|
*All references to months should be read as month ended.
|Closed First-Lien Loans (All Types)||
|FICO Score (FICO)||732||694|
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 November 2014 applications—to calculate an overall closing rate of 60.0 percent in February 2015 (see full report).
About the Ellie Mae Origination Insight Report
In 2014, approximately 3.7 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 66 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 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.
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