Ellie Mae Releases June 2013 Origination Insight Report and June Year-Over-Year Infographic

Ellie Mae Releases June 2013 Origination Insight Report and June Year-Over-Year Infographic

Mix of Refinance-to-Purchase Loans at 51%-to-49%

PLEASANTON, Calif.--(BUSINESS WIRE)-- Ellie Mae® (NYS: ELLI) , a leading provider of enterprise-level, on-demand automated solutions for the residential mortgage industry, today released its Origination Insight Report for June 2013 and infographic comparing mortgage metrics from June of 2012 to June of 2013. 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 the Ellie Mae Network™.

MONTHLY ORIGINATION OVERVIEW FOR JUNE 2013

    June 2013*   May 2013*   6 Months Ago

(December 2012)*

  1 Year Ago

(June 2012)*

Closed Loans
Purpose
Refinance   51 %   58 %   69 %   54 %
Purchase   49 %   42 %   31 %   46 %
Type
FHA   19 %   19 %   19 %   23 %
Conventional   71 %   72 %   73 %   67 %
Days to Close
All   47     44     55     47  
Refinance   47     44     57     47  
Purchase   46     45     51     46  
ARMs vs. Fixed, Length, Rate
ARM %   4 .0%   3 .1%   2 .1%   3 .3%
15 Year %   16 .5%   16 .4%   15 .9%   15 .8%
30 Year - Note Rate   3 .918   3 .747   3 .609   3 .992

*All references to months should be read as month ended.

 

PROFILES OF CLOSED AND DENIED LOANS FOR JUNE 2013

   

Closed First-Lien Loans

(All Types)

 

Denied Loans

(All Types)

FICO Score (FICO)   742   701
Loan-to-Value (LTV)   80   84
Debt-to-Income (DTI)   23/35   28/44

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/about-us/news-reports/ellie-mae-reports/ .

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 2013 applications) to calculate an overall closing rate of 54.3% in June 2013, up from 53.5% in May 2013 (see full report).

"In June, the mix of refinance-to-purchase loans continued to rebalance as higher rates made refinancing less attractive and the prospect of higher home prices and potentially higher interest rates may have brought more buyers to the closing table," said Jonathan Corr, president and chief operating officer of Ellie Mae. "Closed purchase loans accounted for 49% of the volume in June 2013, the highest level since we began tracking in August 2011.

"The average interest rate on a 30-year loan rose to 3.918% in June 2013, the highest point since June 2012 when it was 3.992%," Corr noted. "The transition from a refinance to a purchase market may also be why we saw a growth in adjustable rate mortgages in June 2013, hitting 4% for the first time since May 2012. This may be a sign that some buyers are trying to stretch their budget as both home prices and interest rates tick up.

Finally, Corr noted, "HARP-related refinancing activity continued to cool with conventional refinances at 95%-plus LTV dropping from 9.40% in May 2013 to 8.00% in June 2013."

About Ellie Mae Origination Insight Report

In 2012, the total volume of mortgages that ran through Ellie Mae's Encompass360 mortgage management software was approximately three 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 44% 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 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.

About Ellie Mae

Ellie Mae, Inc. (NYS: ELLI) 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™ that allows Encompass® users to electronically conduct 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.

© 2013 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.



Campbell Lewis Communications
Bill Campbell, 212-995-8057
bill@campbelllewis.com

KEYWORDS:   United States  North America  California

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