MAY. Origination Insight Report

Transcription

1 MAY Origination Insight Report

2 INTRODUCTION The Ellie Mae Origination Insight Report provides monthly data and insights from a robust sampling of closed loan applications that flow through Ellie Mae s Encompass mortgage management software and Ellie Mae Network. The characteristics of closed and denied loans presented in this report are averages. The Origination Insight Report mines its application data from a robust sampling of approximately 75% 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. PAGE 2 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

3 MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS PURPOSE ALL LOANS REFI % 37% PUR % 62% PURPOSE FHA LOANS REFI % 17% PUR % 83% PURPOSE CONV LOANS REFI % 47% PUR % 51% PURPOSE VA LOANS REFI % 22% PUR % 78% TYPE FHA % 23% CONV % 64% VA % 9% OTHER % 4% PAGE 3 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

4 MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS TIME TO CLOSE ALL (DAYS) ALL REFI PUR TIME TO CLOSE FHA (DAYS) ALL REFI PUR TIME TO CLOSE CONV (DAYS) ALL REFI PUR TIME TO CLOSE VA (DAYS) ALL REFI PUR Time to close increases Closing time for all loans increased to 45 days, up from 44 in April. Average FICO score for closed loans increases See page 7 for new FICO distribution data. PAGE 4 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

5 MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS ALL LOANS ARM % 4.5% YR NOTE RATE FHA LOANS ARM % 0.2% YR NOTE RATE CONV LOANS ARM % 5.5% YR NOTE RATE VA LOANS ARM % 0.1% YR NOTE RATE The average 30-year rate for all loans continued to decrease from 4.10 in April to 4.06 in May. PAGE 5 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

6 MONTHLY ORIGINATION OVERVIEW FOR CLOSED LOANS Percentage of loan applications in previous 90-day cycle that have closed ALL LOANS CLOSING 70.6% RATE % REFI % 67.2% PUR % 74.5% FHA LOANS CLOSING 71.2% RATE % REFI % 69.2% PUR % 74.6% CONV LOANS CLOSING 71.2% RATE % REFI % 69.2% PUR % 74.6% VA LOANS CLOSING 63.8% RATE % REFI % 45.7% PUR % 75.0% Closing rates for purchase loans and refinances increased. PAGE 6 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

7 MAY 2016 AVERAGE FICO SCORE DISTRIBUTION Percentage of Closed of Closed Loans Loans Percentage Percentage of Closed of Closed Loans Loans PURCHASE 31.89% 31.89% 30.93% 30.93% 31.89% 30.93% PURCHASE REFINANCE 30% 30% 30% 30% 30% 24.00% 24.00% 30% 22.08% 22.08% 24.00% 22.93% 22.93% 22.08% 22.93% 18.44% 18.44% 20% 20% 20% 20% 18.44% 20% 20% 14.60% 14.60% 12.79% 12.79% 14.60% 12.79% 8.76% 8.76% 8.47% 8.47% 10% 10% 8.76% 10% 10% 8.47% 10% 10% 2.96% 2.96% 1.37% 1.37% 2.96% 0.02% 0.02% 0.45% 0.45% 1.37% 0.02% 0.45% Percentage of Closed of Closed Loans Loans Percentage Percentage of Closed of Closed Loans Loans REFINANCE 40% 40% 40% CONVENTIONAL CONVENTIONAL 40.16% 40.16% 40.16% 40% 40% 40% FHA FHA 37.32% 37.32% 37.32% Percentage of Closed of Closed Loans Loans Percentage Percentage of Closed of Closed Loans Loans 30% 30% 30% 20% 20% 20% 10% 10% 10% 22.97% 22.97% 22.97% 18.70% 18.70% 18.70% 12.73% 12.73% 12.73% 3.91% 3.91% 0.40% 0.40% 0.40% 1.06% Percentage of Closed of Closed Loans Loans Percentage Percentage of Closed of Closed Loans Loans 30% 30% 30% 20% 20% 20% 10% 10% 10% 24.22% 24.22% 24.22% 19.18% 19.18% 19.18% 12.48% 12.48% 12.48% 2.94% 2.94% 1.23% 1.23% 2.94% 2.30% 2.30% 1.23% 2.30% % of closed purchase loans in May had a FICO score above % closed with a score under 600. PAGE 7 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

8 PROFILES OF ALL CLOSED LOANS Closed Loans ALL FICO LTV DTI 24/38 25/38 25/38 25/39 25/39 25/39 25/39 25/39 25/38 25/38 25/38 24/38 24/37 24/38 24/37 24/37 24/37 The average FICO score on all closed loans was 724 in May, the fourth consecutive monthly increase. PAGE 8 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

9 PROFILES OF CLOSED FHA LOANS Closed Loans FHA-REFI FICO LTV DTI 28/45 28/45 28/45 28/46 29/46 29/47 30/47 29/46 28/45 28/45 28/45 27/44 26/41 26/41 26/41 26/40 27/41 FHA-PUR FICO LTV DTI 27/41 27/41 27/41 27/41 28/42 28/41 28/42 28/41 28/41 28/41 28/41 27/41 27/41 27/41 27/41 27/40 28/41 FHA-REFI (% OF 95 LTV+) % 19.4% The average FHA purchase FICO score increased to 686. PAGE 9 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

10 PROFILES OF CLOSED CONVENTIONAL LOANS Closed Loans CON-REFI FICO LTV DTI 25/38 25/39 25/39 25/40 25/40 25/39 25/40 25/40 25/40 25/40 25/40 25/39 24/38 24/38 24/37 24/36 24/37 CON-PUR FICO LTV DTI 22/34 23/34 22/34 23/35 23/35 23/35 23/35 22/34 23/34 23/34 23/34 22/34 22/34 22/34 22/34 22/34 23/35 PAGE 10 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

11 PROFILES OF CLOSED VA LOANS Closed Loans VA-REFI FICO LTV DTI 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/39 24/39 24/39 24/38 24/39 VA-PUR FICO LTV DTI 24/40 24/40 24/40 24/41 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/40 24/39 24/39 24/39 VA-REFI (% OF 95 LTV+) % 50.2% PAGE 11 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

12 TERMINOLOGY CLOSING RATE Percentage of loan applications begun in the previous 90-day cycle that have closed. DEBT-TO-INCOME RATIO (DTI) A personal finance measure that compares an individual s debt payments to the income he or she generates. Includes front-end ratio/back-end ratio. TIME-TO-CLOSE Time from loan application to funding. REFINANCE Includes both no-cash-out and cash-out refinances. FICO A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant s credit risk and determine whether to extend a loan. FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score. The Ellie Mae Origination Insight Report looks at the average middle score from a tri-merge credit report. LOAN-TO-VALUE RATIO (LTV) A lending risk-assessment ratio that financial institutions and other lenders examine before approving a mortgage. It is calculated by dividing the mortgage amount by the appraised value of the property. PAGE 12 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

13 METHODOLOGY The Origination Insight Report mines its application data from a robust sampling of approximately 75% percent of all mortgage applications that are initiated through Ellie Mae s Encompass all-in-one mortgage management solution. 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. PAGE 13 OF 16 ELLIE MAE ORIGINATION INSIGHT REPORT MAY 2016

14 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 or call (877) to learn more. JONATHAN CORR, PRESIDENT AND CEO 2016 Ellie Mae, Inc. Ellie Mae, Encompass, 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.