Market Overview

Ellie Mae Millennial Tracker™ Shows Millennials Seeking to Buy Homes in Affordable Markets

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While Millennials continue to compete for available housing inventory,
which remains tight, Ellie Mae data showed that Millennials are
attracted to more affordable real estate markets, particularly in the
upper Midwest. According to data from the May Ellie
Mae Millennial Tracker
™, Hutchinson, Minn., Wahpeton, N.D.-Minn.,
Austin, Minn. and Williston, N.D. had the highest percentages of loans
being made to Millennial borrowers. Anniston-Oxford-Jacksonville, Ala.
rounded out the top-five markets.

"Our data shows that Millennials are continuing to establish roots where
housing is more affordable and there are increasingly more jobs,"
said Joe Tyrrell, executive vice president of corporate strategy for
Ellie Mae. "While overall, less than half (48 percent) of Millennials
who closed loans in May were single, in markets like Hutchinson, Minn.,
the majority of borrowers were single men. This suggests millennials may
be embracing homeownership in these areas for reasons other than what we
have historically seen, which was family formation."

Other key findings from the May 2017 Ellie Mae Millennial Tracker
include:

  • Conventional mortgages remained the most popular with Millennial
    borrowers, making up 62 percent of all loans made to them, up from 61
    percent in April
  • The percentage of Millennials taking out FHA loans fell another point
    to 34 percent, continuing a one-point-per-month slide that began in
    March
  • FHA Refinance loans took 55 days to close in May, nearly a week longer
    than the 49 days it took in April
  • VA Purchase Loans shaved a few days off the time-to-close, falling to
    42 days from 45 days on average

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 80
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 the leading cloud-based platform provider for
the mortgage finance industry. Ellie Mae's technology solutions enable
lenders to originate more loans, reduce origination costs, and shorten
the time to close, all while ensuring the highest levels of compliance,
quality and efficiency. 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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