Origination Insight Report

Transcription

Compliance.
Quality.
Efficiency.
Origination
Insight Report
MARCH 2016
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.
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 14
ELLIE MAE ORIGINATION INSIGHT REPORT | MARCH 2016
Time to Close Falls Again
Reaches lowest point since
March 2015. See page 4.
Majority of Loans Close
with 700+ FICO score
See page 7 for new FICO
distribution data.
Compliance.
Quality.
Efficiency.
MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS
2016
2015
2014
Mar Feb JanDecNov Oct SepAug JulyJuneMay AprMar Feb JanDecNov
PURPOSE
ALL LOANS
REFI %
45%46474346444237363842475359514345
PUR %
55%52525653555762636158524641485654
PURPOSE
FHA LOANS
REFI %
20%23242126222118172023283436171617
PUR %
80%77767973787982828077726663828483
PURPOSE
CONV LOANS
REFI %
56%57585455545248454852596468625356
PUR %
43%42414543454651545147413631374643
PURPOSE
VA LOANS
REFI %
27%29312633292826242629323541423235
PUR %
73%71697467717274767471686559586865
TYPE
FHA %
22%22222223232324242424242219151717
CONV %
66%65656564646463626363646669706768
VA %
9% 910 910 9 910101010 9 9 9111111
OTHER %
3%3334444443333445
PAGE 3 OF 14
Compliance.
Quality.
Efficiency.
2016
2015
2014
TIME TO
CLOSE ALL
(DAYS)
ALL
4446504949464647484846454438404239
REFI 4144484749454650525249484536394237
PUR 4548515049464645454543434440404241
TIME TO
CLOSE FHA
(DAYS)
ALL
4447514949474746474745444338424240
REFI 4243474547454850535349474333424437
PUR 4549525050484645464643434340424241
TIME TO
CLOSE CONV
(DAYS)
ALL
4346494949454547474846464537394138
REFI 4144484749444650525249484536394237
PUR 4547505049454443454442424439384139
TIME TO
CLOSE VA
(DAYS)
ALL
4850535250484848494946464539394139
REFI 5153585652525254565451494837384239
PUR 4749505150474746464745454440394138
Average time to close for all loans fell two days to 44.
PAGE 4 OF 14
Compliance.
Quality.
Efficiency.
2016
2015
2014
ALL LOANS
ARM %
4.4%5.15.35.35.35.45.35.65.54.94.74.54.24.05.15.86.1
30-YR 4.12
NOTE RATE
4.22
4.30
4.264.2264.2464.2804.3134.2884.1184.0134.0624.0414.0084.154 4.2514.273
FHA LOANS
ARM %
0.3%0.50.40.50.60.80.80.90.80.60.70.60.60.60.70.91.4
30-YR 4.07 4.17 4.25
NOTE RATE
4.22
4.2034.2034.2364.2684.2434.0473.9423.9893.9863.9454.0664.1314.150
CONV LOANS
ARM %
30-YR NOTE RATE
5.2%5.96.36.46.46.46.46.96.96.25.85.65.14.75.67.06.9
4.19
4.29
4.37
4.334.2874.3114.3484.3844.3644.2184.1064.1514.1124.0794.253 4.3744.392
VA LOANS
ARM %
30-YR NOTE RATE
0.2%0.40.30.50.70.90.81.20.80.60.40.50.50.40.60.81.2
3.90
4.01 4.06 4.05
4.062
4.064
4.088
4.1264.0953.8713.8413.8303.8193.7693.852 3.9573.972
The average 30-year rate for all loans decreased from
4.22 in February to 4.12 in March.
PAGE 5 OF 14
Compliance.
Quality.
Efficiency.
Percentage of Loan Applications in Previous 90-Day Cycle That Have Closed
2016
2015
2014
ALL LOANS
CLOSING
RATE %
70.6%69.968.467.368.466.866.866.366.264.264.065.263.660.062.460.260.0
REFI %
66.2%65.664.963.562.760.360.159.260.258.560.164.059.653.056.551.251.2
PUR %
75.1%74.272.271.072.271.171.070.870.769.068.266.567.567.268.367.166.5
FHA LOANS
CLOSING
RATE
67.5%67.866.063.463.862.161.360.258.257.657.155.053.654.857.056.355.0
REFI %
58.6%59.058.651.653.250.848.645.642.644.648.950.037.534.436.435.033.3
PUR %
71.1%71.469.067.367.866.565.965.865.364.163.159.560.662.864.663.262.1
CONV LOANS
CLOSING
RATE
70.1%70.370.268.868.166.366.766.266.163.964.366.063.160.462.760.260.0
REFI %
67.1%67.367.866.364.862.562.562.163.261.162.666.061.055.458.853.853.9
PUR %
74.4%74.573.872.471.970.871.270.870.168.067.765.767.168.869.868.268.0
VA LOANS
CLOSING
RATE %
62.8%63.163.462.463.061.161.361.663.562.062.962.561.363.265.563.064.0
REFI %
44.0%44.345.443.544.341.240.942.348.147.351.455.250.850.255.346.248.4
PUR %
75.0%75.375.173.873.972.972.272.572.571.271.370.270.473.073.373.573.9
The closing rate for purchase loans increased to 75.1%, the highest
percentage we’ve seen since first tracking data in August 2011.
PAGE 6 OF 14
Compliance.
Quality.
Efficiency.
MARCH 2016 AVERAGE FICO SCORE DISTRIBUTION
FICO Score
% of Total Loans
35%
300 - 399
0%
400 - 449
0%
450 - 499
0%
30%
25%
500 - 549
1%
550 - 599
2%
600 - 649
9%
20%
15%
650 - 699
21%
700 - 749
24%
750 - 799
31%
800+
12%
10%
5%
0%
300—399
400—449
450—499
500—549
550—599
600—649
650—699
700—749
750—799
% of Total Loans
67% of loans in March closed with a FICO score of above 700. 12% closed with a score under 650.
PAGE 7 OF 14
800+
Compliance.
Quality.
Efficiency.
PROFILES OF ALL CLOSED LOANS
Closed Loans
2016
2015
2014
ALL
FICO
722720719722721722723724725727730729731732731728729
LTV 8079798079808081818181807979798080
DTI 25/3825/3925/3925/3925/3925/3925/3825/3825/3824/3824/3724/3824/3724/3724/3724/3824/37
The average FICO score on all
closed loans increased to 722, up
three points from January.
PAGE 8 OF 14
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED FHA LOANS
Closed Loans
2016
2015
2014
FHA-REFI
FICO
652650645651648654661660660677683682685690674674675
LTV 7979808080818181818284858589828383
DTI 28/4528/4629/4629/4730/4729/4628/4528/4528/4527/4426/4126/4126/4126/4027/4126/4127/41
FHA-PUR
FICO
685686687688687687689689689689688686685683682681683
LTV 9696969596969696969595959595959595
DTI 27/4127/4128/4228/4128/4228/4128/4128/4128/4127/4127/4127/4127/4127/4028/4128/4128/41
FHA-REFI (% OF REFIS @ 95 LTV+)
2016
%
2015
20.9%18.617.718.919.915.415.423.927.530.935.838.141.639.412.614.513.4
The average FHA purchase FICO score
declined for the third consecutive month.
PAGE 9 OF 14
2014
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED CONVENTIONAL LOANS
Closed Loans
2016
2015
2014
CON-REFI
FICO
731726726727727726728727727732738738742747741737739
LTV 6969696969696970707070707070707070
DTI 25/3925/4025/4025/3925/4025/4025/4025/4025/4025/3924/3824/3824/3724/3624/3724/3824/38
CON-PUR
FICO
753752753754754754755756757757757756755754752753754
LTV 8181808080808080808081818181808080
DTI 22/3423/3523/3523/3523/3522/3423/3423/3423/3422/3422/3422/3422/3422/3423/3523/3423/34
CON-REFI (% OF REFIS @ 95 LTV+)
2016
%
PAGE 10 OF 14
2015
2014
4.3%5.25.75.35.15.75.85.95.85.44.95.24.34.96.06.25.5
Compliance.
Quality.
Efficiency.
PROFILES OF CLOSED VA LOANS
Closed Loans
2016
2015
2014
VA-REFI
FICO
706706705707705707707707708710713715716717716708709
LTV 8988888889888889888888888890909090
DTI 24/4024/4024/4024/4024/4024/4024/4024/4024/4024/4024/39 24/39 24/3924/3824/39 25/3924/39
VA-PUR
FICO
704704704706706705707708709709708705702702704701702
LTV 9898989898989898989898989898989898
DTI 24/4024/4124/4024/4024/4024/4024/4024/4024/4024/4024/4024/4024/3924/3924/3925/3924/39
VA-REFI (% OF REFIS @ 95 LTV+)
2016
%
2015
49.9%48.848.144.647.336.047.145.747.953.853.340.2 40.246.648.047.447.8
The average VA FICO score for purchases held
steady at 704 for the third consecutive month.
PAGE 11 OF 14
2014
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.
TIME-TO-CLOSE Time from loan application to funding.
REFINANCE Includes both no-cash-out and cash-out
refinances.
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.
PAGE 12 OF 14
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.
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 13 OF 14
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
© 2016 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 14 OF 14

Origination Insight Report

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