Ellie Mae Releases March 2013 Origination Insight Report and Q1 2013 Infographic

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Ellie Mae Releases March 2013 Origination Insight Report and Q1 2013 Infographic

Purchase Mix Increases as Spring Buying Season Begins and Credit Continues to Ease

PLEASANTON, Calif.--(BUSINESS WIRE)-- Ellie Mae® (NYS: ELLI) , a leading provider of enterprise-level, on-demand automated solutions for the residential mortgage industry, today released its Origination Insight Report for March 2013, as well as averages of key statistics for Q1 2013. The report draws its data and insights from a robust sampling of the significant volume of loan applications—more than 20% of all originations in the United States—that flow through Ellie Mae's Encompass360® mortgage management software and Ellie Mae Network™.

                

MONTHLY ORIGINATION OVERVIEW FOR MARCH 2013

 
MarchFebruary3 Months Ago6 Months Ago
     2013*    2013*    (December 2012)*    (September 2012)*
Closed Loans
Purpose
Refinance    62%    68%    69%    65%
Purchase    38%    32%    31%    35%
Type
FHA    21%    20%    19%    19%
Conventional    70%    71%    73%    72%
Days to Close
All    46    50    55    50
Refinance    47    51    57    53
Purchase    44    47    51    47
ARMs vs. Fixed, Length, Rate
ARM %    2.5%    2.3%    2.1%    2.6%
15 Year %    15.9%    16.8%    15.9%    17.3%
30 Year - Note Rate    3.813    3.723    3.609    3.773

*All references to months should be read as month ended.

 
 

PROFILES OF CLOSED AND DENIED LOANS FOR MARCH 2013

 
    Closed First-Lien Loans    Denied Loans
     (All Types)    (All Types)
FICO Score (FICO)    743    702
Loan-to-Value (LTV)    81    85
Debt-to-Income (DTI)    23/35    27/44

More information and analysis of closed and denied loans by loan purpose and investor are available in the full report athttp://www.elliemae.com/aboutus/about_reports.asp.

To get a meaningful view of lender "pull-through," Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the December 2012 applications) to calculate an overall closing rate of 55.1% in March 2013, down from 56.8% in February 2013 (see full report).

"In March, the average 30-year note rate for closed loans edged up slightly to 3.813%. While this was at its highest point since last July, from an historical perspective it was still very low," said Jonathan Corr, president and chief operating officer of Ellie Mae. "This slight increase didn't dampen the continuing strength of the purchase market. As spring began last month, purchases accounted for 38% of the volume, up from 32% in February 2013 and 27% in January 2013.

"March also saw the continuing easing of credit: The average FICO score for closed loans dropped to 743 last month, the lowest we've seen since tracking began in August 2011 when average credit scores were at 741." Corr added, "The other good news as we move into the time-sensitive spring purchase market was that the overall time to close decreased from 50 days in February 2013 to 46 days in March 2013.

"Finally, borrowers continued to take advantage of HARP 2.0. Conventional refinances at 95%-plus LTV continued their upward trend, rising to 13% in March 2013 from 12.1% in February 2013 and from 3.6% in March 2012."

About Ellie Mae Origination Insight Report

In 2012, the total volume of mortgages that ran through Ellie Mae's Encompass360 mortgage management software was approximately three million loan applications, or 20% of all U.S. mortgage originations. The Origination Insight Report mines its application data from a robust sampling of approximately 44% 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, Inc. (NYS: ELLI) is a leading provider of on-demand automation solutions for the mortgage industry. The Company offers an end-to-end solution, delivered using a Software-as-a-Service model that serves as the core operating system for mortgage originators and spans customer relationship management, loan origination and business management. The Company also hosts the Ellie Mae Network™ that allows Encompass® users to electronically conduct business transactions with the lenders and settlement service providers they work with to process and fund loans. The Company's offerings include the Encompass, Encompass360® and DataTrac® mortgage management software systems.

Ellie Mae was founded in 1997 and is based in Pleasanton, California. To learn more about Ellie Mae, visit www.EllieMae.com or call 877.355.4362.

© 2013 Ellie Mae, Inc. Ellie Mae®, Encompass®, Encompass360®, DataTrac®, Ellie Mae Network 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.



Campbell Lewis Communications
Bill Campbell, 212-995-8057
bill@campbelllewis.com

KEYWORDS:   United States  North America  California

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