Average FICO Score On Closed Mortgages Jumped To 726

Posted by Patrick Barnard on July 20, 2016 No Comments
Categories : Residential Mortgage

Looser credit? What looser credit?

The average FICO score for all loans closed through Ellie Mae’s Encompass loan origination system increased to 726 in June – up from 724 in May and up from 719 in January to reach the highest level since June 2015, when it hit 727, according to Ellie Mae’s Origination Insight Report.

Looking at total loan volume for the month, about 34% of loans processed using Encompass were refinances, while about 65% were purchases.

About 64% of the loans processed for the month were conventional, while about 23% were Federal Housing Administration loans, 9% were Veterans Affairs loans, and 4% were “other.”

The number of days to close stood at about 46, which has been the average for about the past two years, with the exception of an increase that took place shortly after the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule that took effect on Oct. 3, 2015.

The closing rate for all loans was about 69.6%, down slightly from 70.6% in May.

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