Purchases Continue Upswing, Representing Sixty Five Percent of Closed Loans, According to June Origination Insight Report from Ellie Mae

PLEASANTON, Calif.--(BUSINESS WIRE)--

Purchases increased to 65 percent of all closed loans in June, up from 62 percent in May according to the latest Origination Insight Report released by Ellie Mae^® ELLI, a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. This is the highest closed loan purchase percentage since August of 2014. Refinances represented 34 percent of closed loans in June, down from 37 percent in May. Additionally, the 30-year note rate dropped to 4.04 from 4.06 in May, the lowest point in over a year.

The average time to close all loans increased to 46 days in June, up from 45 days in May. The time to close a purchase rose to 46 days in June, up from 45 days in May, and the time to close a refinance rose to 47 days in June, up from 44 days in May. Similarly, the average time to close FHA loans rose to 47 days in June, up from 45 days in May. Time to close VA loans increased to 50 days in June, up from 49 days in May.

Closing rates for all loans decreased slightly to 69.6 percent in June, down from 70.6 percent in May. Refinance closing rates dipped to 64.7 percent in June, down from 67.2 percent in May, and purchase closing rates dropped to 73.7 percent in June, down from 74.5 percent in May.

"Purchases are continuing their upswing, representing 65 percent of the total loans closed in June, the highest percentage since August of 2014. Refinances represented only 34 percent of closed loans last month," said Jonathan Corr, president and CEO of Ellie Mae. "FHA purchases are also on the rise, representing 85 percent of closed FHA loans, the highest percentage since September of 2014."

The Origination Insight Report mines its application data from a robust sampling of approximately 75 percent of all mortgage applications that were initiated on the Encompass^® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

The Origination Insight Report is a supplement to Ellie Mae's monthly Millennial Tracker, which focuses on millennial mortgage applications during specific time periods. Ellie Mae defines millennials as applicants born between the years 1980 and 1999. The Millennial Tracker will continue to be released on the first Wednesday of each month.

Other findings from the June report:

• June days to close increased to 46 days, up from 45 days in May.
• Debt-to-Income (DTI) ratio remained steady at 24/38 and Loan-to-Value (LTV) ratio held at 81.

MONTHLY ORIGINATION OVERVIEW FOR JUNE 2016
		June 2016*		May 2016*		6 Months Ago (Dec. 2015*)		1 Year Ago (June 2015*)
Closed Loans
Purpose
Refinance		34%		37%		43%		38%
Purchase		65%		62%		56%		61%
Type
FHA		23%		23%		22%		24%
Conventional		64%		64%		65%		63%
VA		9%		9%		9%		10%
Days to Close
All		46		45		49		48
Refinance		47		44		47		52
Purchase		46		45		50		45
Percentage of ARM and Fixed Loan Volume
ARM %		4.8%		4.5%		5.3%		4.9%
30-Year Rate
Average		4.04%		4.06%		4.26%		4.12%

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

PROFILES OF CLOSED LOANS FOR JUNE 2016
		Closed First-Lien Loans (All Types)
FICO Score (FICO)		726
Loan-to-Value (LTV)		81
Debt-to-Income (DTI)		24/38

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—or the March 2016 applications—to calculate an overall closing rate of 69.6 percent in June 2016 (see full report).

About the Ellie Mae Origination Insight Report

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 non-qualification.

The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae's Encompass origination platform. The report 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 ELLI is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae's Encompass^® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit EllieMae.com or call (877) 355-4362 to learn more.

© 2016 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®, Mortgage Returns®, Prospect Manager®, Total Quality Loan®, True CRM®, TQL® and the Ellie Mae logo are 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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