PLEASANTON, Calif.--(BUSINESS WIRE)--
Ellie Mae® (ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry, today released its Origination Insight Report for July 2014. The report draws its data and insights from a robust sampling of the significant volume of loan applications that flow through Ellie Mae’s Encompass® mortgage management software and the Ellie Mae Network™.
MONTHLY ORIGINATION OVERVIEW FOR JULY 2014
|July 2014*||June 2014*||
6 Months Ago
1 Year Ago
|Days to Close|
|ARMs vs. Fixed / Length / Rate|
|15 Year %||8.9%||9.0%||15.0%||15.5%|
*All references to months should be read as month ended.
PROFILES OF CLOSED AND DENIED LOANS FOR JULY 2014
Closed First-Lien Loans
|FICO Score (FICO)||727||689|
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 (i.e., the April 2014 applications) to calculate an overall closing rate of 57.7 percent in July 2014, down from 60.7 percent in June 2014 (see full report).
“The purchase market continued to climb in July with the share of closed purchase loans reaching 67 percent, the highest percentage since we began tracking this data in August 2011,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “Meanwhile, time to close for all loans dropped to 37 days, the lowest average we’ve seen since we began tracking. This reflects time to close decreasing across the board, with an average of 36 days for conventional loans and 38 days for FHA and VA loans.”
Corr added, “The average 30-year rate for all loans declined once again to its lowest level of 2014: 4.388 percent in July, down from 4.421 percent in June 2014.
“The average FICO score fell one point to 727 in July, reversing a four-month trend. A further sign of easing: 32 percent of closed loans had an average FICO score under 700 last month compared to 25 percent in July 2013.”
About the Ellie Mae Origination Insight Report
In 2013, approximately 3.5 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 57 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 nonqualification.
The Origination Insight Report details aggregated, anonymized data and 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 (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.
© 2014 Ellie Mae, Inc. Ellie Mae®, Encompass®, DataTrac®, Ellie Mae Network™, Total Quality Loan™, TQL™ and the Ellie Mae logo are registered trademarks or 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.
Bill Campbell, 212-995-8057