The average number of days to close a mortgage loan fell back to a more normal range – about 44 days – during March, according to Ellie Mae’s Origination Insight Report.
The average number of days to close spiked from 46 days in October to 49 days in November, then hovered at about 49 days in December and 50 days in January due, in part, to implementation of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule, which requires lenders to furnish a newly revised loan estimate disclosure to borrowers within three business days after receiving an application and a new closing disclosure at least three business days prior to the closing. The new rule took effect on Oct. 3, 2015.
It would appear, however, based on this most recent Insight report, that lenders are now adjusting to the new rules.
Low interest rates continued to stimulate the refinance market, to a degree, in March. According to the report, applications refinances accounted for 45% of all applications – down slightly from 46% in February. Applications for purchase loans stood at about 55%.
The closing rate for all loans as of March was about 70.6%, up from 69.9% in February. The closing rate for refinances was about 66.2%, while the closing rate for purchases was about 75.1%.
The average FICO score for all closed loans was 722 in March – up from 720 in February.