January Origination Insight Report from Ellie Mae Shows Refinances Represent 45 Percent of Total Closed Loans; Interest Rates Tick Up
In January, 30-year interest rates increased to 4.330 from 4.280 the month prior, while the percentage of closed ARMs decreased slightly to 5.5 percent, down from 5.6 percent the month prior.
Closing rates decreased slightly across the board, with closing rates on all loans decreasing from 71.2 percent to 70.9 percent, closing rates on refinances decreasing from 65.6 percent to 65.5 percent and closing rates on purchases decreasing from 76.1 percent to 75.7 percent.
“As we ring in 2018, we see refinances rise as a percent of overall loan
volume, something that we have seen every January since we began
reporting this data,” said
Other statistics of note in January included:
- The percentage breakdown of all closed loans changed slightly with conventional loans at 67 percent, FHA loans at 19 percent and VA loans at 10 percent.
- Closing time for all loans remained at 44 days; time to close a refinance was 40 days, down one day from December; and time to close a purchase was 47 days, up one day from December.
- Overall FICO scores dropped one point to 721, LTV dropped from 79 to 77 and DTI moved from 25/39 to 26/40.
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 JANUARY 2018
|Jan. 2018*||Dec. 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 JANUARY 2018
|Closed First-Lien Loans|
|FICO Score (FICO)||721|
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