January Origination Insight Report from Ellie Mae Shows Refinances Represented 35 Percent of All Closed Loans
“The increase in refinances in January is likely due to seasonality with
lower purchase volume tied to the holiday season as well a modest drop
in rates from November and December,” said
Other statistics of note in January included:
- The time to close all loans dropped to 45 days in January, down from 47 days in December. Time to close a purchase loan increased to 48 days, while time to close a refinance dropped to 38 days.
- The 30-year note rate dropped from 5.17 percent in December to 5.01 percent in January.
- The percentage of Adjustable Rate Mortgages (ARMs) decreased from 9.2 percent in December to 8.6 percent in January.
- Overall FICO scores dropped two points from 726 in December to 724 in January. LTV decreased to 77 and DTI held at 26/39.
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 2019
|Jan. 2019*||Dec. 2018*||6 Months Ago||1 Year Ago|
|(Jul. 2018*)||(Jan. 2018*)|
|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 2019
|Closed First-Lien Loans|
|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
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. 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
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