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 December 2013, as well as an infographic of key mortgage statistics and trends for 2013. The report draws its data and insights from a robust sampling of the significant volume of loan applications that flow through Ellie Mae's Encompass® mortgage management software and the Ellie Mae Network TM.

 

MONTHLY ORIGINATION OVERVIEW FOR DECEMBER 2013

   

December
2013*

  

November
2013*

  

6 Months Ago
(June 2013)*

  

1 Year Ago
(December 2012)*

Closed Loans
Purpose
Refinance   46%   45%   51%   69%
Purchase   54%   55%   49%   31%
Type
FHA   20%   20%   19%   19%
Conventional   69%   69%   71%   73%
Days to Close
All   43   42   47   55
Refinance   40   37   47   57
Purchase   46   45   46   51
ARMs vs. Fixed, Length, Rate
ARM %   6.6%   5.8%   4.0%   2.1%
15 Year %   15.1%   14.5%   16.5%   15.9%
30 Year - Note Rate   4.592   4.526   3.918   3.609

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

 

PROFILES OF CLOSED AND DENIED LOANS FOR DECEMBER 2013

   

Closed First-Lien Loans
(All Types)

  

Denied Loans
(All Types)

FICO Score (FICO)   727   698
Loan-to-Value (LTV)   82   82
Debt-to-Income (DTI)   25/39   28/45

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 September 2013 applications) to calculate an overall closing rate of 54.3% in December, up from 53.1% in November 2013 (see full report).

"Purchases represented 54% of closed loans in December 2013, which was double the share of at the beginning of the year," said Jonathan Corr, president and chief operating officer of Ellie Mae. "Meanwhile, refinances ticked up by 1% over November to 46% in December, helped in part by the average 30-year note rate staying below 4.6%.

"HARP-related refinancing activity increased for the second month in a row, as conventional refinances at 95%-plus LTV rose to 12.1% in December, the highest they've been since August 2013."

Corr added, "2013 closed with the loosest credit requirements of the year. The average FICO score for all closed loans last month was 727, 11 points below the 2013 average of 738 and 21 points lower than December 2012, when the average was 748. Last month, 31% of closed loans had FICO scores below 700, compared to 21% in December 2012.

"In addition, both back-end DTI (39%) and average LTV (82%) for December were at their highest points for 2013."

About Ellie Mae Origination Insight Report

In 2013, approximately 3.5 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 57% 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. (NYSE: 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 TM 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 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.

© 2014 Ellie Mae, Inc. Ellie Mae®, Encompass®, DataTrac®, Ellie Mae Network TM 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.

Ellie Mae
Press Contact:
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Bill Campbell, 212-995-8057
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