Origination Insight Report

Transcription

Compliance.
Quality.
Efficiency.
Origination
Insight Report
NOVEMBER 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 | NOVEMBER 2015
TRID Affecting Time to Close?
Average days to close a loan increased by 3
days to 49 total in November, possibly due to
lenders adjusting to new TRID (aka Know
Before You Owe) regulations. See page 4.
Refis Continue to Rise
Refinances as a percentage of
lenders’ overall loan volume
reached its highest point since
April 2015 (46%). See page 3.
Compliance.
Quality.
Efficiency.
MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS
2015
2014
2014
NovOctSepAugJulyJuneMayAprMarFeb JanAVGDecNovOctSepAugJul
PURPOSE
ALL LOANS
REFI %
46%4442373638424753595138434540363332
PUR %
53%5557626361585246414861565460636667
PURPOSE
FHA LOANS
REFI %
26%2221181720232834361719161716141414
PUR %
73%7879828280777266638281848383868585
PURPOSE
CONV LOANS
REFI %
55%5452484548525964686247535649454140
PUR %
43%4546515451474136313752464350545859
PURPOSE
VA LOANS
REFI %
33%29282624262932354142 –323531282827
PUR %
67%71727476747168655958 –686569727273
TYPE
FHA %
23%2323242424242422191520171719192020
CONV %
64%6464636263636466697065676865646464
VA %
10% 9 910101010 9 9 911 –111111121211
OTHER %
PAGE 3 OF 16
4%4444433334–455555
Compliance.
Quality.
Efficiency.
2015
2014
2014
TIME TO
CLOSE ALL
(DAYS)
ALL
494646474848464544384040423940413937
REFI 494546505252494845363939423739403937
PUR 494646454545434344404041424140413838
TIME TO
CLOSE FHA
(DAYS)
ALL
494747464747454443384241424041423938
REFI 474548505353494743334240443744444039
PUR 504846454646434343404241424140423938
TIME TO
CLOSE CONV
(DAYS)
ALL
494545474748464645373939413838393836
REFI 494446505252494845363939423738403937
PUR 494544434544424244393840413939393736
TIME TO
CLOSE VA
(DAYS)
ALL
5048484849494646453939 –413941413838
REFI 5252525456545149483738 –423946444136
PUR 5047474646474545444039 –413840403739
Average time to close conventional purchases and refinances increased 4 and 5 days, respectively.
PAGE 4 OF 16
Compliance.
Quality.
Efficiency.
2015
2014
2014
ALL LOANS
ARM %
5.3%5.45.35.65.54.94.74.54.24.05.16.85.86.16.36.36.26.5
15-YR %
10.7%10.310.3 9.8 9.2 9.7 9.810.311.111.110.810.7 9.910.3 9.6 9.1 9.1 8.9
30-YR NOTE RATE
4.2264.2464.2804.3134.2884.1184.0134.0624.0414.0084.154 4.467 4.2514.2734.3714.3814.3864.388
FHA LOANS
ARM %
0.6%0.80.80.90.80.60.70.60.60.60.71.80.91.41.41.51.52.0
15-YR %
1.7%1.61.51.51.31.31.21.51.61.82.22.32.12.22.01.92.01.8
30-YR 4.2034.2034.2364.2684.2434.0473.9423.9893.9863.9454.0664.3114.1314.1504.2374.2724.2694.264
NOTE RATE
CONV LOANS
ARM %
6.4%6.46.46.96.96.25.85.65.14.75.68.37.06.97.57.77.57.9
15-YR %
15.3%14.814.814.413.614.214.215.015.615.014.114.013.414.013.312.913.012.7
30-YR NOTE RATE
4.2874.3114.3484.3844.3644.2184.1064.1514.1124.0794.253 4.583 4.3744.3924.4864.5054.5114.514
VA LOANS
ARM %
0.7%0.90.81.20.80.60.40.50.50.40.6 –0.81.21.21.71.71.5
15-YR %
3.0%2.83.23.53.72.73.12.93.10.43.1 –2.92.92.72.42.52.4
30-YR 4.062
NOTE RATE
4.064
4.088
4.1264.0953.8713.8413.8303.8193.7693.852 The average 30-year rate for all loans declined for the third
straight month, falling to its lowest point since June 2015.
PAGE 5 OF 16
– 3.9573.9724.1234.1224.128 4.119
Compliance.
Quality.
Efficiency.
Percentage of loan applications in previous 90-day cycle that have closed
2015
2014
2014
ALL LOANS
CLOSING
RATE %
68.4%66.866.866.366.264.264.065.263.660.062.458.260.260.059.458.161.157.7
REFI %
62.7%60.360.159.260.258.560.164.059.653.056.550.951.251.249.348.354.250.3
PUR %
72.2%71.171.070.870.769.068.266.567.567.268.363.367.166.566.164.365.161.7
FHA LOANS
CLOSING
RATE %
63.8%62.161.360.258.257.657.155.053.654.857.054.756.355.056.054.656.254.3
REFI %
53.2%50.848.645.642.644.648.950.037.534.436.441.435.033.336.437.242.245.7
PUR %
67.8%66.565.965.865.364.163.159.560.662.864.659.463.262.161.559.660.157.1
CONV LOANS
CLOSING
RATE
68.1%66.366.766.266.163.964.366.063.160.462.759.760.260.059.458.262.258.2
REFI %
64.8%62.562.562.163.261.162.666.061.055.458.854.653.853.951.350.456.852.2
PUR %
71.9%70.871.270.870.168.067.765.767.168.869.865.868.268.067.966.367.663.9
VA LOANS
CLOSING
RATE %
63.0%61.161.361.663.562.062.962.561.363.265.5
–63.064.063.060.061.456.8
REFI %
44.3%41.240.942.348.147.351.455.250.850.255.3
–46.248.446.443.646.639.8
PUR %
73.9%72.972.272.572.571.271.370.270.473.073.3
–73.573.973.071.271.268.0
The closing rate for all loans reached its highest point
(68.4%) since we began tracking data in August 2011.
PAGE 6 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF ALL CLOSED AND DENIED LOANS
Closed Loans
2015
2014
2014
ALL
FICO
721722723724725727730729731732731726728729726726727727
LTV 798080818181818079797982808081828282
DTI 25/3925/3925/3825/3825/3824/3824/3724/3824/3724/3724/3724/3724/3824/3725/3824/37 24/3724/37
The average FICO score on all
closed loans fell to 721, the
sixth straight month of decline.
Denied Applications
2015
2014
2014
ALL
FICO
651650668668668672669674676675675688679678681694695689
LTV
878783848483848383838381807980818181
DTI
28/4928/4928/4728/4728/4828/4728/4628/4728/4728/4728/4728/4529/4629/4729/4628/4528/4328/45
PAGE 7 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED FHA LOANS
Closed Loans
2015
2014
2014
FHA-REFI
FICO
648654661660660677683682685690674673674675667676675673
LTV 808181818182848585898284838383838384
DTI 30/4729/4628/4528/4528/4527/4426/4126/4126/4126/4027/4126/4226/4127/4127/4227/41 27/4127/42
FHA-PUR
FICO
687687689689689689688686685683682684681683683682682683
LTV 969696969695959595959595959595959595
DTI 28/4228/4128/4128/4128/4127/4127/4127/4127/4127/4028/4128/4128/4128/4128/4128/4127/4128/41
FHA-REFI (% OF REFIS @ 95 LTV+)
%
2015
2014
19.9%15.415.423.927.530.935.838.141.639.412.610.914.513.410.112.011.711.0
The average FHA refinance FICO score
fell for the second straight month to 648.
PAGE 8 OF 16
2014
Compliance.
Quality.
Efficiency.
PROFILES OF DENIED FHA LOANS
Denied Applications
2015
2014
2014
FHA-REFI
FICO
649647639640637637629619622623615635612612615627637641
LTV 818181818080808179807882787778808381
DTI 29/4829/4829/4730/4631/4830/4830/4930/4531/5031/5033/5230/4732/5032/5032/5131/4929/4631/47
FHA-PUR
FICO
637635636635635638635633630627630663658659661668660664
LTV 969696969696969696969695959595959596
DTI 30/5030/5030/4930/4930/5029/4829/4729/4829/4828/4728/4831/4732/4733/4932/4931/4731/4732/47
PAGE 9 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED CONVENTIONAL LOANS
Closed Loans
2015
2014
2014
CON-REFI
FICO
727726728727727732738738742747741733737739734732735733
LTV 696969707070707070707071707070717070
DTI 25/4025/4025/4025/4025/4025/3924/3824/3824/3724/3624/3724/3924/3824/3825/3923/3924/38 24/38
CON-PUR
FICO
754754755756757757757756755754752755753754754755755755
LTV 808080808080818181818080808080808080
DTI 23/3522/3423/3423/3423/3422/3422/3422/3422/3422/3423/3523/3423/3423/3423/3423/3423/3422/34
CON-REFI (% OF REFIS @ 95 LTV+)
%
PAGE 10 OF 16
2015
2014
2014
5.1%5.75.85.95.85.44.95.24.34.96.07.96.25.56.46.56.35.9
Compliance.
Quality.
Efficiency.
PROFILES OF DENIED CONVENTIONAL LOANS
Denied Applications
2015
2014
2014
CON-REFI
FICO
700695694694693697700702703700696702694695 696714720699
LTV 7071717272727272717273737271 71727573
DTI 28/4728/4728/4728/4829/4828/4828/4728/4628/4728/4628/4728/4528/4628/47 28/4627/4327/42 28/45
CON-PUR
FICO
702700700701700706705699701698701724719722 723725723727
LTV 8382828282828283828383818180 81808182
DTI 27/4526/4526/4526/4526/4526/4426/4325/4326/4425/4325/4326/4226/4427/43 26/4326/42 26/42 26/42
PAGE 11 OF 16
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED VA LOANS
Closed Loans
2015
2014
2014
VA-REFI
FICO
LTV DTI 705707707707708710713715716717716
–708709 704702699704
8988888988888888889090 –9090 91899091
24/4024/4024/4024/4024/4024/4024/39 24/39 24/3924/3824/39 – 25/3924/39 25/4024/3925/4025/39
VA-PUR
FICO
LTV DTI 706705707708709709708705702702704
–701702 701705707709
9898989898989898989898 –9898 98989898
24/4024/4024/4024/4024/4024/4024/4024/4024/3924/3924/39
–25/3924/3924/3924/4024/39 24/39
VA-REFI (% OF REFIS @ 95 LTV+)
%
2015
2014
47.3%36.047.145.747.953.853.340.2 40.246.648.0
After holding steady for three months, the
average VA refinance FICO score declined
slightly to 705.
PAGE 12 OF 16
2014
–47.447.8 46.844.943.946.0
Compliance.
Quality.
Efficiency.
PROFILES OF DENIED VA LOANS
Denied Applications
2015
2014
2014
VA-REFI
FICO
LTV DTI 652647647646645650649664664668671
–674657 682682666691
9093939493949491919292 –9292 91919088
29/5426/4826/4725/4827/4927/4825/4527/47 27/4726/4628/46
–25/4527/45 28/4628/4627/4428/43
VA-PUR
FICO
584584642642644651642641641635636
–663656 666677671669
LTV 102102100100100100100100100100100
–100101 100100100100
DTI PAGE 13 OF 16
29/5426/4826/4727/4727/48 26/47 26/4727/48 27/4826/4725/46
–26/4526/43 28/4728/4627/4526/44
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®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®, Mortgage Returns®, Prospect Manager, Total Quality Loan™, True CRM®, TQL™ and the Ellie Mae logo are
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

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