Market Overview

Ellie Mae Millennial Tracker Shows Days to Close at Its Shortest in Nearly a Year

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In February, time to close all loans for Millennial borrowers decreased
to 44 days, the shortest average time to close since March 2016,
according to the latest Millennial
Tracker

released by Ellie
Mae®
 (NYSE:ELLI), a leading provider of innovative
on-demand software solutions and services for the residential mortgage
industry. The average time to close a purchase loan for Millennials
decreased from 46 days in January to 42 days in February, while time to
close a refinance loan also decreased to 52 days in February, down from
58 days the month prior. Similarly, the average time to close FHA loans
decreased from 47 days in January to 43 days in February. Average time
to close VA loans decreased dramatically from 57 days to 41 days.

As U.S. housing trends toward a buyer's market, purchases accounted for
86 percent of all closed loans for the month of February, a slight
uptick from 84 percent in January, while refinances fell two percentage
points to 14 percent of all loans to Millennial borrowers. Share of
conventional loans stayed steady from the month prior, representing 61
percent of loans, while FHA loans increased to 36 percent in February,
up from 35 percent the month prior.

FICO scores across all loan types continued to fall in February to an
average of 723, down from 724 in January and their peak of 726 from
August through October 2016. For purchases, the average FICO score was
747 for a conventional loan, 690 for an FHA loan and 745 for a VA loan.

"Purchase loans are increasing, indicating that Millennials are
continuing to enter the first-time homebuyer market," said Joe Tyrrell,
executive vice president of corporate strategy for Ellie Mae. "In
addition, we saw time to close decrease from 49 days in January to 44
days in February, which indicates that our lenders are seeing more
efficiency as they embrace mortgage automation."

In February, the hottest housing market for Millennials was in the state
of Texas. The top markets by percentage of Millennial loans closed in
the state included Odessa, Midland and Beaumont-Port Arthur.

Ellie
Mae®
 (NYSE:ELLI) is a leading provider of innovative
on-demand software solutions and services for the residential mortgage
industry. The Ellie Mae Millennial Tracker is an interactive online tool
that provides access to up-to-date demographic data about this new
generation of homebuyers. It mines data from a robust sampling of
approximately 75 percent of all closed mortgages dating back to 2014
that were initiated on Ellie Mae's Encompass® all-in-one
mortgage management solution. Given the size of this sample and Ellie
Mae's market share, it is a strong proxy of Millennial mortgage
indicators across the country. Searches can be tailored by borrower
geography, age, gender, marital status, FICO score and amortization type.

For more information, visit http://elliemae.com/millennial-tracker

ABOUT THE ELLIE MAE MILLENNIAL TRACKER

The Ellie Mae Millennial Tracker focuses on Millennial mortgage
applications during specific time periods. Ellie Mae defines Millennials
as applicants born between the years 1980 and 1999. New data is updated
on the first Monday of every month for two months prior.

The Millennial Tracker is a subset of our Origination Insight Report,
which details aggregated, anonymized data pulled from Ellie Mae's
Encompass origination platform. Additional information regarding the
Origination Insight Report can be found at http://elliemae.com/resources/origination-insight-reports.
News organizations have the right to reuse this data, provided that
Ellie Mae, Inc. is credited as the source.

ABOUT ELLIE MAE

Ellie Mae (NYSE: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.

© 2017 Ellie Mae, Inc. Ellie Mae®,
Encompass
®, AllRegs®,
the Ellie Mae logo and other trademarks or service marks of Ellie Mae,
Inc. appearing herein are the property 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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