Ellie Mae: Lenders Working ‘Harder Than Ever’ To Close Loans

Posted by Patrick Barnard on July 17, 2014 No Comments
Categories : Residential Mortgage

Ellie Mae's lender pull-through closing rate reached 60.7% for the month of June – the first time it has topped 60% – according to the software solutions provider's June 2014 Origination Insight Report.

To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the March 2014 applications) to calculate an overall closing rate of 60.7%: up around three percentage points from May and five from April.

Jonathan Corr, president and chief operating officer, says this is the first time the rate has been over 60% since the company first started tracking the data in August 2011.

"Clearly, lenders are working harder than ever to convert and close loans," he says.

The average 30-year rates of Federal Housing Administration, conventional and Veterans Affairs loans reached the lowest levels seen this year, Corr adds, with the average 30-year rate for closed loans at 4.421% – the lowest since July of last year, when it was at 4.357%.

He explains that in June, the market was "heavily purchased-oriented" and that the declining interest rates might have had something to do with the "slight shift in the purchase/refinance mix." Additionally, the declines may have caused more borrowers to choose 30-year fixed-rate mortgages, causing the lowest percentage of the year for 15-year loans.

"The average time to close a loan increased for the third straight month, rising slightly to 41 days," Corr adds.

The full report can be found here.

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