*Closed Loan Rate Dips Slightly*
**New Ellie Mae Report**
***Ellie Mae released its Origination Insight Report for November 2012. The report draws its data and insights from a sampling of the volume of loan applications that flow through Ellie Mae’s Encompass360mortgage management software and Ellie Mae Network. To get a meaningful view of lender “pull-through,” Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the August applications) to calculate an overall closing rate of 52.3% in November 2012, down slightly from 54.5% in October 2012.
****“The 30-year note rate on closed loans continued to decline, falling to 3.6% in November 2012 from 3.671% in October 2012,” said Jonathan Corr, chief operating officer of Ellie Mae. “The overall time to close decreased to 50 days last month mainly due to speedier closing of refinances, coming in at 51 days in November 2012, six days shorter than in October 2012.”
****Corr added, “There were also signs that HARP may still have some legs: Conventional refinances at 95%-plus LTV rose for the third month in a row, hitting 9.62% in November 2012.”
****The Origination Insight Report mines Ellie Mae’s application data. 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 Loans that do not close could still be active applications, or applications withdrawn by consumers or denied for incompleteness or non-qualification.
****The Origination Insight Report details aggregated, anonymized data and does not disclose client-specific or proprietary information.