December Origination Insight Report From Ellie Mae Shows Refinances Rise to 40 Percent of Total Closed Loans; Closing Rates Increase for All Loans
In December, closing rates increased across the board with closing rates on all loans increasing from 70.9 percent to 71.2 percent, closing rates on refinances increasing from 65.1 percent to 65.6 percent and closing rates on purchases increasing from 75.5 percent to 76.1 percent. Closing rates also increased across FHA, conventional and VA loans for both purchases and refinances.
“As we closed out 2017 we saw an increase in the percentage of
refinances due to seasonality as fewer purchases take place in the
fourth quarter, and likely homebuyers were taking advantage of the
mortgage deductibility limit before it decreased to
Other statistics of note in December included:
- The percentage breakdown of all closed loans remained steady with conventional loans at 66 percent, FHA loans at 20 percent and VA loans at 10 percent.
- Closing time for all loans increased slightly to 44 days, up 1 day from the month prior.
- 30-year interest rates increased to 4.280 from 4.240 the month prior.
- The percentage of ARMs held steady at 5.6 percent.
The Origination Insight Report mines 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.
In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.
MONTHLY ORIGINATION OVERVIEW FOR DECEMBER 2017
|Dec. 2017*||Nov. 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 LOANS FOR DECEMBER 2017
|Closed First-Lien Loans
|FICO Score (FICO)||722|
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
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
About Ellie Mae