Ellie Mae Releases April 2013 Origination Insight Report

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Ellie Mae Releases April 2013 Origination Insight Report

Purchase Loans Climb for the Third Consecutive Month; Credit Scores Continue 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 April 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 APRIL 2013

  April 2013* March 2013* 3 Months Ago

(January 2013)*

 6 Months Ago

(October 2012)*

Closed Loans
Purpose
Refinance58%62%73%69%
Purchase42%38%27%31%
Type
FHA22%21%18%19%
Conventional68%70%74%74%
Days to Close
All46465454
Refinance47475557
Purchase44445147
ARMs vs. Fixed, Length, Rate
ARM %3.2%2.5%2.1%2.2%
15 Year %15.3%15.9%16.9%16.9%
30 Year - Note Rate3.8083.8133.6343.671

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


PROFILES OF CLOSED AND DENIED LOANS FOR APRIL 2013

  

Closed First-Lien Loans
(All Types)

 

Denied Loans
(All Types)

FICO Score (FICO)742701
Loan-to-Value (LTV)8185
Debt-to-Income (DTI)23/3528/45

More information and analysis of closed and denied loans by loan purpose and investor are available in the full report athttp://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 January 2013 applications) to calculate an overall closing rate of 53.2% in April 2013, down from 55.1% in March 2013 (see full report).

"The spring buying season appeared to be in full bloom in April with the percentage of closed purchase loans reaching 42% last month, up from 38% in March 2013 and 32% in February 2013," said Jonathan Corr, president and chief operating officer of Ellie Mae.

"The last time purchase loans broke the 40% mark was back in July 2012.

"The trend toward more relaxed credit also continued in April 2013 as the average FICO score decreased slightly for the fifth consecutive month to 742 in April 2013 from 743 in March 2013," added Corr. "Pull-through closing rates dropped slightly last month to 53.2% from 55.1% in March 2013. This may be a reaction to interest rates, which had been climbing for the past five months and then reversed course and fell to 3.808 in April 2013 from 3.813 in March 2013.

"In April, there were some signs that HARP 2.0 may be slowing down: Conventional refinances at 95%-plus LTV dropped for the first time since August 2012, falling to 11.6% in April 2013 from 13% in March 2013," Corr said.

"Finally, days to close held steady on a month-over-month basis at 46 days," Corr added.

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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