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 Network™. MONTHLY ORIGINATION OVERVIEW FOR JUNE 2012 June 2012* May 2012 3 Months Ago 6 Months Ago (March 2012) (December 2011) Closed Loans Purpose Refinance 54 % 54 % 61 % 60 % Purchase 46 % 46 % 39 % 40 % Type 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 PROFILES OF CLOSED AND DENIED LOANS FOR JUNE 2012 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 http://www.elliemae.com/aboutus/about_reports.asp. 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 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. 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 owners. Contact: Campbell Lewis Communications Bill Campbell, 212-995-8057 firstname.lastname@example.org
Ellie Mae Releases June 2012 Origination Insight Report
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