October Origination Insight Report From Ellie Mae Shows Percentage of Refinances Ticks Slightly Higher as Interest Rates Dip to New 2017 Low
“We are continuing to see borrowers take advantage of the lower interest
rates as the refinance percentage increased to 39 percent of total loans
in the month,” said
Other statistics of note in October 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.
- The average FICO score on all closed loans remained steady at 724 in October. FHA purchase FICO scores dropped one point to 681 and FHA refinances increased one point to 650. Conventional refinance FICO scores rose one point to 732 and conventional purchase FICO scores held at 752. VA refinance FICO scores increased one point to 702 and VA purchase FICO scores also dropped a point to 708.
- Closing time for all loans held at 43 days for the second straight month.
- The percentage of ARMs remained at 5.5 percent for the second straight month.
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 OCTOBER 2017
|Oct. 2017*||Sept. 2017*||
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 OCTOBER 2017
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 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