*More Of The Same*
***Drawing on data from the May Origination Insight Report, the company’s president and COO Jonathan Corr, believes, “On a month-over-month basis, the market in May mirrored April, and credit quality, as measured by FICO, LTV and DTI, continued its slow loosening that started in January 2013. The refinance-to-purchase mix stayed at 58% vs. 42%.”
****To get a meaningful view of lender “pull-through,” Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the February 2013 applications) to calculate an overall closing rate of 53.5% in May 2013, up slightly from 53.2% in April 2013.
****“The average interest rate on a 30-year loan was 3.747 in May, down from 3.808 in April. An interest rate dip often prompts borrowers and lenders to lock in their refinance rates and close,” Corr noted. “While this probably factored into the steady pull-through rate in May, it didn’t affect days to close, which registered their lowest point this year (44 days in May).”
****The report draws its data and insights from a robust sampling of the significant volume of loan applications—more than 20% of all originations in the United States—that flow through Ellie Mae’s Encompass360 LOS and the Ellie Mae Network.
****“For the past few months, we’ve noted a gradual decline in high-LTV refinances that are most likely HARP-related,” said Corr. “In May, for the first time this year, HARP-related refinancing activity fell below 10% to 9.4%.”