January. Origination Insight Report

Transcription

1 January 2019 Origination Insight Report

2 Introduction The Ellie Mae Origination Insight Report provides monthly data and insights from a robust sampling of closed loan applications that flow through Ellie Mae s Encompass mortgage management software and Ellie Mae Network. The characteristics of closed and denied loans presented in this report are averages. The Origination Insight Report mines its application data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass Digital Mortgage Solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country. 2 of 14 Ellie Mae Origination Insight Report January 2019

3 Monthly Origination Overview for Closed Loans Purpose ALL Loans REFI % 35% PUR % 65% Purpose FHA Loans REFI % 21% PUR % 79% Purpose CONV Loans REFI % 35% PUR % 65% Purpose VA Loans REFI % 32% PUR % 68% Type FHA % 19% CONV % 66% VA % 11% Other % 4% of 14 Ellie Mae Origination Insight Report January 2019

4 Monthly Origination Overview for Closed Loans Time to Close ALL (Days) ALL REFI PUR Time to Close FHA (Days) ALL REFI PUR Time to Close CONV (Days) ALL REFI PUR Time to Close VA (Days) ALL REFI PUR Time to shifts as we welcome 2019 The average time to close decreased two days in January to 45. The average time to close a refinance decreased to 38 days, while the average time to close a purchase increased to 49 days. 4 of 14 Ellie Mae Origination Insight Report January 2019

5 Monthly Origination Overview for Closed Loans ALL Loans ARM % 8.6% Year Note Rate FHA Loans ARM % 0.8% Year Note Rate CONV Loans ARM % 8.1% Year Note Rate VA Loans ARM % 0.4% Year Note Rate The average 30-year rate for all loans fell to 5.01 percent in January, down from 5.17 the month prior. The average 30-year rate on FHA loans decreased to 5.05 percent in January. Conventional and VA rates decreased to 5.04 and 4.83 percent, respectively. 5 of 14 Ellie Mae Origination Insight Report January 2019

6 Monthly Origination Overview for Closed Loans Percentage of loan applications in previous 90-day cycle that have closed ALL Loans Closing 75.0% Rate % REFI % 69.5% PUR % 78.1% FHA Loans Closing 71.5% Rate % REFI % 60.5% PUR % 75.6% CONV Loans Closing 75.0% Rate % REFI % 70.3% PUR % 77.9% VA Loans Closing 71.6% Rate % REFI % 61.9% PUR % 77.3% Closing rates for all loans increased to 75.0 in January. Refinance closing rates increased to 69.5 percent in January, while purchase closing rates increased to 78.1 percent in January. 6 of 14 Ellie Mae Origination Insight Report January 2019

7 January 2019 Average FICO Score Distribution Purchase 34.32% Refinance 29.84% Percentage of Closed Loans 30% 20% 10% 0.08% 0.85% 9.23% 18.72% 24.01% 12.79% Percentage of Closed Loans 30% 20% 10% 1.01% 2.94% 9.91% 20.50% 25.01% 10.67% 0% 0% % Conventional 40.71% 40% FHA 35.88% Percentage of Closed Loans 30% 20% 10% 0.35% 0.67% 3.68% 13.47% 25.40% 15.65% Percentage of Closed Loans 30% 20% 10% 0.64% 4.84% 25.21% 21.24% 10.36% 1.86% 0% 0% percent of all closed loans had FICO scores over percent of purchase loans had FICO scores over percent of refinances had FICO scores over of 14 Ellie Mae Origination Insight Report January 2019

8 Profiles of All Closed Loans Closed Loans ALL FICO LTV DTI 26/39 26/39 26/39 26/39 25/39 26/39 26/39 26/39 26/39 26/39 26/39 26/40 26/40 25/39 25/39 25/39 25/39 The average FICO score on all closed loans decreased two points to 724 in January. Average LTV decreased to 77 and DTI held at 26/39 in January. 8 of 14 Ellie Mae Origination Insight Report January 2019

9 Profiles of Closed FHA Loans Closed Loans FHA-REFI FICO LTV DTI 28/43 28/43 28/43 27/43 27/43 28/44 28/44 28/43 30/47 30/47 29/47 30/49 29/48 29/48 30/49 29/47 29/47 FHA-PUR FICO LTV DTI 29/44 30/44 30/44 29/44 29/44 29/44 29/44 29/44 29/44 29/44 29/44 29/44 29/44 28/43 28/43 28/43 28/43 FHA-REFI (% OF 95 LTV+) % 7.3% The average FHA purchase FICO increased to 675 in January, while FHA refinance FICO scores increased to 662 in January. Conventional refinance FICO scores held steady at 732, and Conventional purchase FICO scores decreased to 750 in January. 9 of 14 Ellie Mae Origination Insight Report January 2019

10 Profiles of Closed Conventional Loans Closed Loans CON-REFI FICO LTV DTI 25/38 25/37 25/38 25/38 24/37 25/39 26/39 26/40 26/40 26/40 26/40 26/39 25/40 25/39 25/39 25/39 25/39 CON-PUR FICO LTV DTI 25/37 25/37 25/37 25/37 24/36 24/36 25/36 24/36 24/36 24/36 24/36 24/37 24/36 24/36 24/36 24/36 23/35 10 of 14 Ellie Mae Origination Insight Report January 2019

11 Profiles of Closed VA Loans Closed Loans VA-REFI FICO LTV DTI 28/42 28/43 27/42 27/43 27/42 27/42 27/42 27/42 27/42 27/42 26/42 26/42 26/42 26/42 26/42 25/41 26/41 VA-PUR FICO LTV DTI 27/43 27/43 27/43 27/43 27/43 27/43 27/43 27/43 27/43 26/42 26/42 26/42 26/42 26/42 26/42 25/41 25/41 VA-REFI (% OF 95 LTV+) % 54.4% of 14 Ellie Mae Origination Insight Report January 2019

12 Terminology Closing Rate Percentage of loan applications begun in the previous 90-day cycle that have closed. Debt-to-Income Ratio (DTI) A personal finance measure that compares an individual s debt payments to the income he or she generates. Includes front-end ratio/back-end ratio. FICO A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant s credit risk and determine whether to extend a loan. FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score. The Ellie Mae Origination Insight Report looks at the average middle score from a tri-merge credit report. Loan-to-Value Ratio (LTV) A lending risk-assessment ratio that financial institutions and other lenders examine before approving a mortgage. It is calculated by dividing the mortgage amount by the appraised value of the property. Refinance Includes both no-cash-out and cash-out refinances. Time-to-Close Time from loan application to funding. 12 of 14 Ellie Mae Origination Insight Report January 2019

13 Methodology The Origination Insight Report mines its application data from a robust sampling of approximately 80 percent of all mortgage applications that are initiated through Ellie Mae s Encompass digital mortgage solution. The Origination Insight Report focuses on loans that closed in a specific month. 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 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. 13 of 14 Ellie Mae Origination Insight Report January 2019

14 About Ellie Mae Ellie Mae (NYSE: ELLI) is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae s technology solutions enable lenders to originate more loans, reduce origination costs, and shorten the time to close, all while ensuring the highest levels of compliance, quality, and efficiency. Visit or call (877) to learn more. Jonathan Corr, President and CEO 2019 Ellie Mae, Inc. Ellie Mae, Encompass, 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 EI