Purchase Volume Rises Slightly in December, According to Ellie Mae Origination Insight Report
January 27 2015 - 4:15PM
Business Wire
Closing rates for purchase loans increased,
average 30-year fixed rates continued drop
After a four-month decline, mortgage lenders saw shares of
purchase loan volumes rise in December even as mortgage rates
continued to fall, 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 closing rates for
purchase loans ended the year at 67.1 percent, the highest level
since Ellie Mae began tracking this data in August 2011.
According to the December Origination Insight Report, the
average interest rate for a 30-year fixed rate mortgage dropped
from 4.273% to 4.251%, finishing the year more than a quarter of a
percent lower than the average rate of 4.592% in December of
2013.
“While many observers thought rates would rise last year,
lenders were instead treated to at least a little more refinancing
volume,” said Jonathan Corr, president and COO of Ellie Mae. “The
fact that lenders are closing purchase loans at a higher rate is
great news as we head toward the spring home buying season.”
The Origination Insight Report mines its application data from a
robust sampling of approximately 57 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.
Other findings of the report include:
• The average time to close all loans rose at 42 days
• The average 30-year interest rate for all loans was .472% less
than January 2014 (4.723%)
• The percentage of closed loans with a FICO score less than 700
was 31 percent, the same as one year ago
MONTHLY ORIGINATION OVERVIEW FOR
DECEMBER 2014
December 2014*
November 2014* 6 Months Ago
(June 2014*)
1 Year Ago
(Dec. 2013*)
Closed Loans Purpose Refinance
43% 45% 33% 46%
Purchase 56% 54%
65% 54%
Type FHA
17% 17% 21% 20%
Conventional 67% 68%
65% 69%
VA 11%
11% 10% -
Days to Close
All 41 39
41 43
Refinance 42
37 39 40
Purchase
41 41 42 46
ARMs vs. Fixed /
Length / Rate ARM % 5.8%
6.1% 7.2% 6.6%
15 Year %
9.9% 10.3% 9.0%
15.1%
30-Year
Note Rate
4.251% 4.273%
4.421% 4.592%
*All references to months should be read as month ended.
PROFILES OF CLOSED AND DENIED LOANS FOR
DECEMBER 2014
Closed First-Lien Loans (All
Types) Denied Loans
(All Types)
FICO Score (FICO) 728 679
Loan-to-Value (LTV) 80 80
Debt-to-Income (DTI) 24/38 29/46
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 September 2014 applications—to calculate an overall closing
rate of 60.2 percent in December 2014 (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 all-in-one Encompass® 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.
© 2015 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®,
DataTrac®, Ellie Mae Network™ Total Quality Loan™, TQL™ and
the Ellie Mae logo are trademarks of Ellie Mae, Inc. or its
subsidiaries. All rights reserved. Other company and product names
may be trademarks or copyrights of their respective
owners.
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Strategic Vantage Mortgage Public RelationsWarren Lutz,
925-899-9773WarrenLutz@StrategicVantage.com
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