Origination Insight Report

Transcription

Compliance.
Quality.
Efficiency.
Origination
Insight Report
SEPTEMBER 2015
Compliance.
Quality.
Efficiency.
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.
In 2014, approximately 3.7 million loan applications
ran through Ellie Mae’s Encompass mortgage
management solution.
The Origination Insight Report mines its application data
from a robust sampling of approximately 66 percent
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.
PAGE 2 OF 16
ELLIE MAE ORIGINATION INSIGHT REPORT | SEPTEMBER 2015
Refi Momentum
Refinances represented 42 percent of lenders’ overall
loan volume in September, a one-month increase of 5
percent. See page 3.
Time to Close Declines
Overall time to close
decreased for the second
consecutive month.
See page 4.
Compliance.
Quality.
Efficiency.
MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS
2015
2014
2014
SepAug JulyJuneMay AprMar Feb JanAVG Dec Nov Oct SepAug Jul JunMay
PURPOSE
ALL LOANS
REFI %
42%3736384247535951384345403633323333
PUR %
57%6263615852464148615654606366676566
PURPOSE
FHA LOANS
REFI %
21%1817202328343617191617161414141819
PUR %
79%8282807772666382818483838685858281
PURPOSE
CONV LOANS
REFI %
52%4845485259646862475356494541404340
PUR %
46%5154514741363137524643505458595659
PURPOSE
VA LOANS
REFI %
28%2624262932354142 –3235312828272728
PUR %
72%7476747168655958 –6865697272737372
TYPE
FHA %
23%2424242424221915201717191920202122
CONV %
64%6362636364666970656768656464646564
VA %
9%10101010 9 9 911 –11111112121110 9
OTHER %
4%44433334–45555555
PAGE 3 OF 16
Compliance.
Quality.
Efficiency.
2015
2014
2014
TIME TO
CLOSE ALL
(DAYS)
ALL
464748484645443840404239404139374140
REFI 465052524948453639394237394039373939
PUR 464545454343444040414241404138384240
TIME TO
CLOSE FHA
(DAYS)
ALL
474647474544433842414240414239384341
REFI 485053534947433342404437444440394239
PUR 464546464343434042414241404239384341
TIME TO
CLOSE CONV
(DAYS)
ALL
454747484646453739394138383938364039
REFI 465052524948453639394237384039373939
PUR 444345444242443938404139393937364139
TIME TO
CLOSE VA
(DAYS)
ALL
484849494646453939 –4139414138384141
REFI 525456545149483738 –4239464441364142
PUR 474646474545444039 –4138404037394141
Average time to close for conventional refinances declined four days to 46.
PAGE 4 OF 16
Compliance.
Quality.
Efficiency.
2015
2014
2014
ALL LOANS
ARM %
5.3%5.65.54.94.74.54.24.05.16.85.86.16.36.36.26.57.27.6
15-YR %
10.3%9.89.29.79.8
10.3
11.1
11.1
10.8
10.79.9
10.39.69.19.18.99.09.7
30-YR NOTE RATE
4.2804.3134.2884.1184.0134.0624.0414.0084.154 4.467 4.2514.2734.3714.3814.3864.3884.4214.530
FHA LOANS
ARM %
0.8%0.90.80.60.70.60.60.60.71.80.91.41.41.51.52.01.61.9
15-YR %
1.5%1.51.31.31.21.51.61.82.22.32.12.22.01.92.01.81.92.6
30-YR 4.2364.2684.2434.0473.9423.9893.9863.9454.0664.3114.1314.1504.2374.2724.2694.2644.2904.383
NOTE RATE
CONV LOANS
ARM %
6.4%6.96.96.25.85.65.14.75.68.37.06.97.57.77.57.99.29.6
15-YR %
14.8%14.413.614.214.215.015.615.014.114.013.414.013.312.913.012.712.513.6
30-YR NOTE RATE
4.3484.3844.3644.2184.1064.1514.1124.0794.253 4.583 4.3744.3924.4864.5054.5114.5144.5444.669
VA LOANS
ARM %
0.8%1.20.80.60.40.50.50.40.6 –0.81.21.21.71.71.52.12.3
15-YR %
3.2%3.53.72.73.12.93.10.43.1 –2.92.92.72.42.52.42.62.8
30-YR 4.088
NOTE RATE
4.1264.0953.8713.8413.8303.8193.7693.852 The average 30-year rate for all loans
declined for the first time since May, falling to 4.280.
PAGE 5 OF 16
– 3.9573.9724.1234.1224.128 4.1194.1414.240
Compliance.
Quality.
Efficiency.
Percentage of loan applications in previous 90-day cycle that have closed
2015
2014
2014
ALL LOANS
CLOSING
RATE %
66.8%66.366.264.264.065.263.660.062.458.260.260.059.458.161.157.760.757.8
REFI %
60.1%59.260.258.560.164.059.653.056.550.951.251.249.348.354.250.355.852.3
PUR %
71.0%70.870.769.068.266.567.567.268.363.367.166.566.164.365.161.763.661.6
FHA LOANS
CLOSING
RATE %
61.3%60.258.257.657.155.053.654.857.054.756.355.056.054.656.254.357.053.6
REFI %
48.6%45.642.644.648.950.037.534.436.441.435.033.336.437.242.245.749.443.9
PUR %
65.9%65.865.364.163.159.560.662.864.659.463.262.161.559.660.157.159.757.5
CONV LOANS
CLOSING
RATE %
66.7%66.266.163.964.366.063.160.462.759.760.260.059.458.262.258.261.658.7
REFI %
62.5%62.163.261.162.666.061.055.458.854.653.853.951.350.456.852.258.354.9
PUR %
71.2%70.870.168.067.765.767.168.869.865.868.268.067.966.367.663.965.363.3
VA LOANS
CLOSING
RATE %
61.3%61.663.562.062.962.561.363.265.5
–63.064.063.060.061.456.858.056.2
REFI %
40.9%42.348.147.351.455.250.850.255.3
–46.248.446.443.646.639.843.843.3
PUR %
72.2%72.572.571.271.370.270.473.073.3
–73.573.973.071.271.268.068.767.8
Overall loan closing climbed for
the fourth consecutive month.
PAGE 6 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF ALL CLOSED AND DENIED LOANS
Closed Loans
2015
2014
2014
ALL
FICO
723724725727730729731732731726728729726726727727728727
LTV 808181818180797979828080818282828282
DTI 25/3825/3825/3824/3824/3724/3824/3724/3724/3724/3724/3824/3725/3824/37 24/3724/37 24/3724/37
The average FICO score on
all closed loans fell to 723,
the lowest score since we began
reporting data in August 2011.
Denied Applications
2015
2014
2014
ALL
FICO
668668668672669674676675675688679678681694695689686689
LTV
838484838483838383818079808181818282
DTI
28/4728/4728/4828/4728/4628/4728/4728/4728/4728/4529/4629/4729/4628/4528/4328/45 28/4528/45
PAGE 7 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED FHA LOANS
Closed Loans
2015
2014
2014
FHA-REFI
FICO
661660660677683682685690674673674675667676675673672673
LTV 818181828485858982848383838383848384
DTI 28/4528/4528/4527/4426/4126/4126/4126/4027/4126/4226/4127/4127/4227/41 27/4127/4227/4326/43
FHA-PUR
FICO
689689689689688686685683682684681683683682682683683684
LTV 969696959595959595959595959595959595
DTI 28/4128/4128/4127/4127/4127/4127/4127/4028/4128/4128/4128/4128/4128/4127/4128/41 28/4128/41
FHA-REFI (% OF REFIS @ 95 LTV+)
%
2015
2014
15.4%23.927.530.935.838.141.639.412.610.914.513.410.112.011.711.011.5 9.6
The average FICO score on closed FHA
refinances remained steady for the
fourth consecutive month at 689.
PAGE 8 OF 16
2014
Compliance.
Quality.
Efficiency.
PROFILES OF DENIED FHA LOANS
Denied Applications
2015
2014
2014
FHA-REFI
FICO
639640637637629619622623615635612612615627637641640646
LTV 818180808081798078827877788083818282
DTI 29/4730/4631/4830/4830/4930/4531/5031/5033/5230/4732/5032/5032/5131/4929/4631/4730/4430/46
FHA-PUR
FICO
636635635638635633630627630663658659661668660664661669
LTV 969696969696969696959595959595969595
DTI 30/4930/4930/5029/4829/4729/4829/4828/4728/4831/4732/4733/4932/4931/4731/4732/4731/4631/47
PAGE 9 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED CONVENTIONAL LOANS
Closed Loans
2015
2014
2014
CON-REFI
FICO
728727727732738738742747741733737739734732735733733735
LTV 697070707070707070717070707170707171
DTI 25/4025/4025/4025/3924/3824/3824/3724/3624/3724/3924/3824/3825/3923/3924/38 24/38 24/3825/38
CON-PUR
FICO
755756757757757756755754752755753754754755755755755755
LTV 808080808181818180808080808080808080
DTI 23/3423/3423/3422/3422/3422/3422/3422/3423/3523/3423/3423/3423/3423/3423/3422/3422/3422/34
CON-REFI (% OF REFIS @ 95 LTV+)
%
PAGE 10 OF 16
2015
2014
2014
5.8%5.95.85.44.95.24.34.96.07.96.25.56.46.56.35.96.77.0
Compliance.
Quality.
Efficiency.
PROFILES OF DENIED CONVENTIONAL LOANS
Denied Applications
2015
2014
2014
CON-REFI
FICO
694694693697700702703700696702694695 696714720699695703
LTV 717272727272717273737271 717275737372
DTI 28/4728/4829/4828/4828/4728/4628/4728/4628/4728/4528/4628/47 28/4627/4327/42 28/45 28/4528/45
CON-PUR
FICO
700701700706705699701698701724719722 723725723727725726
LTV 828282828283828383818180 818081828182
DTI 26/4526/4526/4526/4426/4325/4326/4425/4325/4326/4226/4427/43 26/4326/42 26/42 26/42 26/4226/42
PAGE 11 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED VA LOANS
Closed Loans
2015
2014
2014
VA-REFI
FICO
LTV DTI 707707708710713715716717716
–708709 704702699704706700
888988888888889090 –9090 918990919090
24/4024/4024/4024/4024/39 24/39 24/3924/3824/39 – 25/3924/39 25/4024/3925/4025/39 25/3925/39
VA-PUR
FICO
LTV DTI 707708709709708705702702704
–701702 701705707709708711
989898989898989898 –9898 989898989898
24/4024/4024/4024/4024/4024/4024/3924/3924/39
–25/3924/3924/3924/4024/39 24/39 24/3924/39
VA-REFI (% OF REFIS @ 95 LTV+)
%
2015
2014
47.1%45.747.953.853.340.2 40.246.648.0
The average FICO score on closed VA
refinances and purchases came in at 707.
PAGE 12 OF 16
2014
–47.447.8 46.844.943.946.043.741.8
Compliance.
Quality.
Efficiency.
PROFILES OF DENIED VA LOANS
Denied Applications
2015
2014
2014
VA-REFI
FICO
LTV DTI 647646645650649664664668671
–674657 682682666691661679
939493949491919292 –9292 919190889391
26/4725/4827/4927/4825/4527/47 27/4726/4628/46
–25/4527/45 28/4628/4627/4428/4327/4627/42
VA-PUR
FICO
642642644651642641641635636
–663656 666677671669666671
LTV 100100100100100100100100100
–100101 100100100100101 99
DTI PAGE 13 OF 16
26/4727/4727/48 26/47 26/4727/48 27/4826/4725/46
–26/4526/43 28/4728/4627/4526/4427/4528/46
Compliance.
Quality.
Efficiency.
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.
DENIED APPLICATIONS Loan applications denied as
indicated by lender for Home Mortgage Disclosure
Act (HMDA) reporting purposes. Loan applications
not reported as denied or as originated (closed) may
include active applications, applications withdrawn
by consumers, or files closed for incompleteness.
TIME-TO-CLOSE Time from loan application to funding.
REFINANCE Includes both no-cash-out and cash-out
refinances.
PAGE 14 OF 16
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.
Compliance.
Quality.
Efficiency.
METHODOLOGY
The Origination Insight Report mines its application
data from a robust sampling of approximately 66 percent
of all mortgage applications that are initiated through
Ellie Mae’s Encompass all-in-one mortgage management
solution. In 2014, approximately 3.7 million loan
applications ran through Encompass. 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.
PAGE 15 OF 16
Compliance.
Quality.
Efficiency.
ABOUT ELLIE MAE
Ellie Mae (NYSE: ELLI) is a leading provider of innovative
on-demand software solutions and services for the
residential mortgage industry. Mortgage lenders of all
sizes use Ellie Mae’s Encompass® all-in-one mortgage
management solution, Mavent Compliance Service, and
AllRegs research, reference and education resources to
improve compliance, loan quality and efficiency across
the entire mortgage lifecycle.
Visit www.EllieMae.com or call 877-355-4362
to learn more.
SIG ANDERMAN, FOUNDER AND EXECUTIVE CHAIRMAN
© 2015 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.
PAGE 16 OF 16

Origination Insight Report

Transcription

Similar documents

Origination Insight Report

EllieMae Origination Insight Report

Origination Insight Report