Ellie Mae Releases June 2012 Origination Insight Report

  Ellie Mae Releases June 2012 Origination Insight Report

             Average Closed Loan in June Had Sub-4% Interest Rate

Business Wire

PLEASANTON, Calif. -- July 18, 2012

Ellie Mae^® (NYSE:ELLI), a leading provider of enterprise-level, on-demand
automated solutions for the residential mortgage industry, today released its
Origination Insight Report for June 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


                     June 2012*  May 2012   3 Months Ago  6 Months Ago
                                                (March 2012)   (December 2011)
Closed Loans                                            
Refinance             54      %  54     %  61       %   60         %
Purchase              46      %  46     %  39       %   40         %
FHA                   23      %  25     %  28       %   26         %
Conventional          67      %  65     %  64       %   66         %
Days to Close                                           
All                   47        46       42          47         
Refinance             47        48       42          48         
Purchase              46        44       42          45         
ARMs vs. Fixed,                                         
Length, Rate
ARM %                 3   .3   %  4  .3   %  4   .2    %   5    .4     %
15 Year %             15  .8   %  17 .6   %  20  .2    %   18   .1     %
30 Year – Note Rate   3   .992   4  .116   4   .080     4    .263   
* All references to months should be read as month ended


                     Closed First-Lien Loans  Denied Loans
                       (All Types)               (All Types)
FICO Score (FICO)     746                      701
Loan-to-Value (LTV)   80                       87
Debt-to-Income (DTI)  23/35                    27/43

More information and analysis of closed and denied loans by loan purpose and
investor are available in the full report at

To get a meaningful view of lender “pull-through,” Ellie Mae reviewed a
sampling of loan applications initiated 90 days prior (i.e., the March
applications) to calculate a closing rate for June. Ellie Mae found that 46.2%
of all applications closed in June 2012 compared to 47.2% in May 2012 (see
full report).

“In June, the average closed loan had a slightly higher credit score (746 vs.
744), lower loan to value (80% vs. 81%), and more conservative debt-to-income
ratio (23/35 vs. 24/35) than in May,” said Jonathan Corr, chief operating
officer of Ellie Mae. “This tracks with the slight decline in closed
conventional refinances with LTVs of 95%-plus, which were 10.2% in June, down
from 11% in May.

“June’s 30-year note rate at 3.992% was the lowest monthly rate since we
started tracking in August 2011 and nearly two-thirds of a point lower than
the rate at that time,” Corr noted. “So it is hardly surprising that borrowers
are opting for 30-year mortgages and that the share of adjustable rate
mortgages (3.3%) and 15-year loans (15.8%) is diminishing.

“In June, the average refinance loan closed in 47 days, one day faster than in
May, but the average purchase loan took two days longer, or 46 days, to
close,” he said.

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 months to two months from
application to closing. Loans that do not close could still be active
applications, withdrawn by the consumer or denied for incompleteness or

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™, which allows mortgage professionals to conduct electronic 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


Campbell Lewis Communications
Bill Campbell, 212-995-8057
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