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Ellie Mae Releases May 2013 Origination Insight Report

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 May 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 Ellie Mae Network™.

       

MONTHLY ORIGINATION OVERVIEW FOR MAY 2013

    May 2013*   April 2013*  

3 Months Ago
(February
2013)*

 

6 Months Ago
(November
2012)*

Closed Loans
Purpose
Refinance   58%   58%   68%   68%
Purchase   42%   42%   32%   32%
Type
FHA   19%   22%   20%   19%
Conventional   72%   68%   71%   73%
Days to Close
All   44   46   50   50
Refinance   44   47   51   51
Purchase   45   44   47   48
ARMs vs. Fixed, Length, Rate
ARM %   3.1%   3.2%   2.3%   2.0%
15 Year %   16.4%   15.3%   16.8%   16.7%
30 Year – Note Rate   3.747   3.808   3.723   3.600

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

 

 

   

PROFILES OF CLOSED AND DENIED LOANS FOR MAY 2013

   

Closed First-Lien Loans
(All Types)

 

Denied Loans
(All Types)

FICO Score (FICO)   743   701
Loan-to-Value (LTV)   79   84
Debt-to-Income (DTI)   23/35   27/44
 

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 February 2013 applications) to calculate an overall closing rate of 53.5% in May 2013, up slightly from 53.2% in April 2013 (see full report).

“On a month-over-month basis, the market in May mirrored April, and credit quality, as measured by FICO, LTV and DTI, continued its slow loosening that started in January 2013,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “The refinance-to-purchase mix stayed at 58% vs. 42%.”

“The average interest rate on a 30-year loan was 3.747 in May, down from 3.808 in April. An interest rate dip often prompts borrowers and lenders to lock in their refinance rates and close,” Corr noted. “While this probably factored into the steady pull-through rate in May, it didn’t affect days to close, which registered their lowest point this year (44 days in May).”

“For the past few months, we’ve noted a gradual decline in high-LTV refinances that are most likely HARP-related,” said Corr. “In May, for the first time this year, HARP-related refinancing activity fell below 10% to 9.4%.”

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. (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™ 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.

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