Ellie Mae Releases November 2012 Origination Insight Report
Ellie Mae Releases November 2012 Origination Insight Report
HARP 2.0 Showing Renewed Traction: Conventional Refinances at 95%-Plus LTV Near 10% of Loans
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 November 2012. 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 NOVEMBER 2012 | ||||||||
November | October | 3 Months Ago | 6 Months Ago | |||||
Closed Loans | ||||||||
Purpose | ||||||||
Refinance | 68% | 69% | 61% | 54% | ||||
Purchase | 32% | 31% | 39% | 46% | ||||
Type | ||||||||
FHA | 19% | 19% | 21% | 25% | ||||
Conventional | 73% | 74% | 70% | 65% | ||||
Days to Close | ||||||||
All | 50 | 54 | 49 | 46 | ||||
Refinance | 51 | 57 | 51 | 48 | ||||
Purchase | 48 | 47 | 47 | 44 | ||||
ARMs vs. Fixed, Length, Rate | ||||||||
ARM % | 2.0% | 2.2% | 2.7% | 4.3% | ||||
15 Year % | 16.7% | 16.9% | 16.8% | 17.6% | ||||
30 Year - Note Rate | 3.600 | 3.671 | 3.763 | 4.116 | ||||
*All referencesto months should be read as month ended.
PROFILES OF CLOSED AND DENIED LOANS FOR NOVEMBER 2012 | ||||
Closed First-Lien Loans | Denied Loans | |||
FICO Score (FICO) | 750 | 707 | ||
Loan-to-Value (LTV) | 79 | 86 | ||
Debt-to-Income (DTI) | 23/34 | 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 August applications) to calculate an overall closing rate of 52.3% in November 2012, down slightly from 54.5% in October 2012 (see full report).
"The 30-year note rate on closed loans continued to decline, falling to 3.6% in November 2012 from 3.671% in October 2012," said Jonathan Corr, chief operating officer of Ellie Mae. "The overall time to close decreased to 50 days last month mainly due to speedier closing of refinances, coming in at 51 days in November 2012, six days shorter than in October 2012."
Corr added, "There were also signs that HARP may still have some legs: Conventional refinances at 95%-plus LTV rose for the third month in a row, hitting 9.62% in November 2012."
About Ellie Mae Origination Insight Report
In 2011, the total volume of mortgages that ran through Ellie Mae's Encompass360 mortgage management software was approximately two 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 33% 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. 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.
© 2012 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
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