Lenders Sped up Refi Processing in November

Metrics ofrnloans originated through Ellie Mae’s mortgage management software and networkrnwere largely unchanged from earlier months according to its OriginationrnInsight Report for November 2012 released today.  The report covers over 20% of allrnoriginations in the United States.  </p

Loans originated forrnthe purpose of refinancing declined from 69 percent of the total loansrnoriginated to 68 percent and the FHA share of originations remained at 19rnpercent.  This is, however down from anrnFHA share of 25 percent in November 2011. rn</p

Jonathan Corr, chief operatingrnofficer of Ellie Mae said “There were also signs that HARP may still have somernlegs: Conventional refinances at 95%-plus LTV rose for the third month in arnrow, hitting 9.62% in November 2012.” </p

To determine arnpull-through rate ElliernMae reviewed a sampling of loan applications initiated 90 days prior (i.e., thernAugust applications) to calculate an overall closing rate of 52.3% in Novemberrn2012, down slightly from 54.5% in October 2012. </p

The time to close loans didrnimprove from October to November.  Thernaverage closing time for all loans in November was 50 days compared to 54 daysrnin October, the longest period in the 16 months Ellie Mae has been furnishingrndata but the improvement was driven by a large improvement in refinancing.  Those loans took an average of 51 days tornclose in November compared to 57 in October but the length of time required forrnpurchase mortgages ticked up one day to 48 days. </p

The profile of closedrnand rejected loans remained virtually unchanged from previous months withrnapproved loans having an average FICO score of 750, debt-to-income-ratio (DTI)rnof 23/34 and loan-to-value (LTV) of 79. rnThe average FICO score of a denied loan was up one point from October torn707 and average LTV went down one point to 86 percent while DTI was unchangedrnat 27/44.

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