Posts

30-Year Fixed Rate Drops, Refis Tick Up Slightly

According to the March Origination Insight Report from Ellie Mae, the 30-year note rate dropped for the third straight month to 4.77 percent, down from 4.86 percent in February and 5.01 percent in January. The percentage of refinances on all loans increased to 35 percent, up from 34 percent the month prior.


Featured Sponsors:

 


“As we enter the busy spring home buying season, we are seeing activity tick back up across the board with the 30-year note rate decline,” said Jonathan Corr, President and CEO of Ellie Mae. “We will continue to watch closing rates as they have stayed at or above 75 percent through the first quarter of 2019, a possible indication of buyers’ conviction.”


Featured Sponsors:

 


Other statistics of note in March included:

The percentage of FHA refinances increased to 23 percent in March, up from 20 percent in February.


Featured Sponsors:

 


Time to close all loans continued to decrease. Time to close all loans was 42 days in March, down from 43 in February and 45 in January. The time to close a purchase loan dropped to 45 days in March, down from 47 in February and 49 in January.

The percentage of Adjustable Rate Mortgages (ARMs) decreased to 7.4 percent, down from 7.6 percent in February.


Featured Sponsors:

 


The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.

LOS Looks To Transform The User Experience

Wipro Gallagher Solutions (WGS), a Wipro Limited company and a provider of loan origination software solutions, has released the latest version of its Loan Origination System (LOS), NetOxygen v6.0. Here’s what they are looking to accomplish:


Featured Sponsors:

 


The new version features an all-new, intuitive user interface (UI), an in-built operations dashboard, an integration with Business Intelligence (BI) and Reporting Engine, additions to the application program interface (API) library and a number of process automation features. With these key updates, NetOxygen v6.0 offers more control to lenders and enables them to build a tailored and streamlined digital experience.


Featured Sponsors:

 


The NetOxygen v6.0 UI offers its users a more enriching user experience, designed to streamline operations and improve personnel productivity. NetOxygen v6.0 also offers a web-based dashboard, designed to provide updates, at-a-glance about a pipeline and loan’s status for all personnel. The dashboard offers users customizable widgets and display features for greater control and more efficient originations.


Featured Sponsors:

 


The latest version supports the goal to introduce newer automation features with every release to minimize manual work and move the lending process forward, faster. These features shorten the overall loan approval process by ensuring that work is triggered automatically and instantly resolved in workflow.


Featured Sponsors:

 


NetOxygen v6.0 introduces its latest business intelligence feature by offering an integration with a BI engine that allows users to create or tailor reports, and an easy-to-use collaboration service that allows lenders and settlement agents to securely share, validate, and collaborate on loan documents.

“Our latest release, NetOxygen v6.0 is designed to elevate the overall user experience by offering lenders more control through an intuitive user interface, all while creating a more intelligent and automated platform” said Alok Bansal, Vice President and Head, Wipro Gallagher Solutions, Wipro Limited. “As lenders continue to focus on efficiency and productivity, we continually evolve our software to solve the issues most important to them, through constant innovation.”

Additionally, NetOxygen v6.0 is designed to support Fannie Mae and Freddie Mac’s updates to the Uniform Residential Loan Application (URLA) and the Uniform Loan Application Dataset (ULAD), while the loan import functionality has been updated to accommodate the MISMO 3.4.0 loan XML.

Lender Looks For Quicker LOS Deployment

Washington Trust Bank, the oldest and largest privately held commercial bank in the Northwest, went live on Empower, Black Knight’s loan origination system (LOS). Washington Trust Bank leveraged the Empower Now! implementation model – a quicker and more cost-effective deployment approach designed specifically for mid-tier financial institutions. 


Featured Sponsors:

 


“Washington Trust Bank is now using Empower to support our organization’s growth strategy,” said Shane Patnoi, vice president of consumer lending for Washington Trust Bank. “Replacing our legacy technology with Black Knight’s system will provide advanced functionality, system scalability and flexible configuration to increase the effectiveness of our expanding lending efforts.”


Featured Sponsors:

 


The Empower Now! implementation model gives lenders a base set of capabilities from Empower, which have been pre-configured based on the industry’s most common lending practices. Lenders can then add functionality and additional components, enabling them to remain on the same LOS as their business grows, and to adjust system parameters to meet their specific compliance needs.


Featured Sponsors:

 


Empower is a comprehensive LOS used by many of the nation’s top lenders to electronically capture, process, underwrite and close loans in support of their retail, wholesale, consumer direct, correspondent and home equity channels. Empower also provides Web APIs for easy access to data and documents, which are needed to provide consumers with a digital user experience. By selecting the Empower Now! model, lenders such as Washington Trust Bank receive the same Empower functionality and integrations, but the system can be implemented in a reduced timeline and at a lower cost.


Featured Sponsors:

 


              “We are pleased to support Washington Trust Bank with advanced origination capabilities that will scale as the bank’s loan volume increases,” said Rich Gagliano, president, Black Knight Origination Technologies. “With an accelerated implementation timeline and a cost structure that aligns with mid-market lenders’ needs, Washington Trust Bank will be able to quickly and cost-effectively take advantage of Empower’s ability to help the bank’s customers buy new homes and refinance existing mortgages.”

Ellie Mae Program Gets Early Adopters

Ellie Mae announced the early-adopters of the Ellie Mae Integrated Partner Program. The Integrated Partner Program was first announced in October of 2018 and already includes a number of Independent Software Vendors and Developers, further growing the capabilities offered on the Ellie Mae Encompass Digital Lending Platform.


Featured Sponsors:

 


The program provides Ellie Mae lenders with innovative, sanctioned and easily implemented integrations for the mortgage lending process. Some of the early adopter solutions include quality assurance (QA) and quality control (QC), business analytics, robotic process automation (RPA), document management, customer relationship management (CRM) and optical character recognition (OCR).


Featured Sponsors:

 


This program means more efficient workflows and business processes can be easily implemented to help lenders engage and acquire more prospective homebuyers, originate and close loans more efficiently, lower the cost of origination and fund and sell loans faster to ensure a steady flow of capital. 


Featured Sponsors:

 


Through the Integrated Partner Program, partners leverage Ellie Mae’s APIs to develop secure widgets, apps and next-generation integrations including business rule analyzer, lock reconciliation, data extract and pipeline highlighter.


Featured Sponsors:

 


The Integrated Partner Program early adopters include:

AI Foundry– AI and ML-based cognitive business automation and Agile Mortgages solution 

Capsilon, Capsilon IQ – Intelligent Process Automation, leveraging Data and Document extraction technology

Digital Risk, LuminateT – Automatic Document Recognition, OCR and RPA solutions

focusIT, Pulse CRM for Mortgage Professionals: A lead and marketing management system 

Silverline, a Salesforce Platinum Partner – Salesforce/Encompass Digital Lending Platform integration

Tabrasa  – marketing automation, CRM, real-time market insights, print and custom branded merchandise solutions  for mortgage clients

TRK Connection, cloud-based Insight Risk and Defect Management – Quality Control audit platform

Whiteboard Technologies, LLC, Powered by The Mortgage Playbook, is the scalable CRM for LO’s, Teams and Enterprise

“We are excited to offer more trusted integrations via our Encompass Digital Lending Platform through Ellie Mae’s Integrated Partner Program and Marketplace,” said Parvesh Sahi, senior vice president of business development, Ellie Mae. “For our partners, this new program provides the opportunity to build and deploy fully tested, scalable API integrations to more efficiently reach our network of lenders. For our lenders, integrations with these leading edge business software and systems providers enable a more efficient workflow, furthers mortgage innovation and delivers on the promise of a true digital mortgage.”

For more information about Ellie Mae’s ISV Partner Program or to become a member, visit https://explore.elliemae.com/independent-software-vendors

About The Author

ARMs Hit Eight-Year High

According to the December Origination Insight Report from Ellie Mae, the percentage of Adjustable Rate Mortgages (ARMs) reached 9.2 percent, the highest percentage in 2018 and since Ellie Mae began tracking data in 2011. This is up from 8.9 percent the month prior and the 2018 low of 5.5 percent. 


Featured Sponsors:

 


The increase in ARMs continues to be correlated to the 30-year rate, which rose to 5.17 for loans closed in December, up from 5.15 the month prior. For FHAs, the 30-year rate increased to 5.20, Conventional rates increased to 5.19 and VA rates rose to 5.01.


Featured Sponsors:

 


“With the strong demand for housing and the rapid increase in property value appreciation, more consumers are turning to Adjustable Rate Mortgages in order to gain additional flexibility when competing for a home,” said Jonathan Corr, president and CEO of Ellie Mae. “This is another key indication of how demand has outpaced supply in the housing market as consumers pursue their dream of homeownership.”


Featured Sponsors:

 


Other statistics of note in December included:

>>The time to close all loans increased to 47 days in December, up from 46 days in November. Time to close a purchase loan decreased to 47 days, while time to close a refinance increased to 44 days. 


Featured Sponsors:

 


>>The percentage of purchase loans rose to 71 percent of total loans in December, up from 70 percent the month prior.

>>Overall FICO scores dropped one point to 726. LTV held at 79 for the fifth month and DTI held at 26/39.

The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.

Adjustable Rate Mortgages Reach A High

 According to the November Origination Insight Report from Ellie Mae the percentage of Adjustable Rate Mortgages (ARMs) reached 8.9 percent, the highest percentage since Ellie Mae began tracking data in 2011.


Featured Sponsors:

 


The increase in ARMs is directly correlated to the 30-year rate, which rose to 5.15 in November, up from 5.01 the month prior. For FHAs, the 30-year rate increased from 5.05 in October to 5.19 in November. Conventional rates increased from 5.03 in October to 5.17 in November, and VA rates rose from 4.83 to 4.99.


Featured Sponsors:

 


“As interest rates continue to rise, we are seeing the percentage of Adjustable Rate Mortgages rise in lockstep, and this month they’ve risen to the highest percentage we’ve seen since we began tracking data,” said Jonathan Corr, president and CEO of Ellie Mae. “As expected, we are also continuing to see the percentage of refinances remain low—30 percent in November—due to higher interest rates.”


Featured Sponsors:

 


Other statistics of note in November included:

The time to close all loans increased to 46 days in November, up from 45 days in October. Time to close a purchase loan increased to 48 days, up from 46 days in October, while time to close a refinance remained at 43 days for the second consecutive month.

The percentage of purchase loans rose to 70 percent of total loans in November, up from 68 percent the month prior.

Overall FICO scores remained steady at 727 in November for the third month. LTV held at 79 for the fourth month, and DTI held at 26/39 for the second month.

The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae  Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.

Ellie Mae Strengthens Identity, Employment And Income Verification Services

Ellie Mae has made enhancements to Encompass Consumer Connect that include identity, employment and income verification. These enhancements help lenders engage with homebuyers and provide a more streamline application process to help foster interest, engage borrowers and convert opportunities.


Featured Sponsors:

 


The enhancements include the integration of Experian’s CrossCore platform, which enables lenders to use a passive, multi-layered approach to establish identity and assess risk, providing a positive experience for borrowers. Mortgage lenders can combine historical data, such as demographic information, and first-party fraud risk assessment with step-up authentication methods to verify an individual during the application process. Upon submission of the loan application, the data is immediately sent to the identity verification provider and a report is generated and sent to the Encompass® eFolder within one hour of submission.


Featured Sponsors:

 


Since the launch on July 9, 2018, Encompass Consumer Connect continues to add key functionality which now includes support for Verification Services that provides lenders the ability to automate borrower identity, employment and income verification to achieve Day 1 Certainty from Fannie Mae to close loans faster.


Featured Sponsors:

 


In addition to providing a seamless digital experience for homebuyers, Encompass Consumer Connect helps lenders close loans faster. Since the launch of Encompass Consumer Connect, Ellie Mae has seen significant momentum including more than 500 clients with more than 2,000 unique sites and more than 140,000 applications in progress. Some lenders are seeing a three-day reduction in turn times from application to underwritten loan.

“At Experian, we are constantly innovating to modernize the mortgage process and support the industry’s evolution,” said Michele Pearson, general manager of Experian Mortgage. “We’re proud to work with Ellie Mae to maximize the power of data and analytics to more quickly and accurately authenticate prospective borrowers, while helping businesses make smarter lending decisions.”

Encompass Consumer Connect gives Ellie Mae Encompass lenders the ability to offer a consumer web experience that goes beyond a mere online application. It is truly a state-of-the-art, completely customizable, branded and engaging digital mortgage experience for homebuyers – accessible from any device.

“Lenders are looking for more efficient ways to engage homebuyers and with these updates to Encompass Consumer Connect, we’re making it easier for borrowers to complete their loan applications,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “Our recent enhancements to Encompass Consumer Connect offer identity, employment and income verification and an integration with Experian that simplifies and expedites key verification activities for an improved borrower experience.”

Dave Ard Joins Ellie Mae As SVP Of Enterprise Sales

Dave Ard has joined Ellie Mae as senior vice president of enterprise sales. In this role, Dave will manage the enterprise team of account executives and relationship managers responsible for providing digital mortgage technology to the largest lenders across the United States.


Featured Sponsors:

 


Prior to joining Ellie Mae, Dave held various leadership and management roles at First American Mortgage Solutions. Most recently he served as senior vice president, sales and business development where he led the client executive team of representatives across top clients and designed and implemented the “Solution Executive” framework where he hired and led a team of solution and business development representatives to drive solution-level focus and accountability. He also led and integrated the partner and channel sales effort across multiple product lines and acquisitions. Before First American Mortgage Solutions, Dave held roles at CoreLogic, including senior vice president of Business Development, Client Executive and Senior Vice President of Mortgage Analytics. Dave began his career at Intel Corporation. He holds a Bachelor of Science in Managerial Economics from the University of California, Davis.


Featured Sponsors:

 


“Dave has a proven history of leading successful sales teams and knows the mortgage market well,” said Jeff Benjamin, senior vice president of sales and client management, Ellie Mae. “Going forward, Dave will be responsible for driving the sales and relationship management strategy with a focus on the largest lenders as Ellie Mae drives toward our North Star of automating everything automatable for the residential mortgage industry. It is an opportunity to help these lenders succeed and grow Ellie Mae’s market share.”


Featured Sponsors:

 


“This is an exciting time to join Ellie Mae,” said Dave Ard. “The digital mortgage is a game-changer for all lenders as they strive to compete in today’s changing market. The Enterprise segment has so much to gain from the efficiencies, cost savings and fast return on their technology investment as they turn to Encompass to close more loans, close loans faster and reduce their cost of origination. I look forward to working alongside a great team to bring the promise of Ellie Mae’s true digital mortgage to the country’s largest lenders.”

Integrations That Make Sense

As we all know, lenders have a lot of needs that can’t be fulfilled by any one vendor. So vendors have to integrate to help their clients. For example, Mortgage Cadence, an Accenture company, has integrated Radian’s mortgage insurance – (MI) service into its Enterprise Lending Center solution, further expanding on-platform access to top-tier services.


Featured Sponsors:

 

 


Enterprise Lending Center (ELC) facilitates lending in all forward and reverse mortgage channels and across all mortgage products, including home equity. Through the Radian integration, Mortgage Cadence clients can quickly obtain Radian MI rate quotes, order insurance, and receive order status updates without ever leaving ELC.


Featured Sponsors:

 


“At Mortgage Cadence, our goal is to help our clients connect to the providers they want to work with and operate at optimal efficiency,” said Brian Benson, executive manager of services at Mortgage Cadence. “This integration extends our provider network and offers direct, on-platform access to Radian’s mortgage insurance services.”


Featured Sponsors:

 


The integration centralizes all data and documents related to the mortgage insurance transaction and stores this information within ELC to avoid rekeying of information from external sites. This single-system approach benefits lenders by eliminating the risk of human error, reducing labor and accelerating loan closing.

“Radian’s integration with Mortgage Cadence is a testament of our commitment to making it easier for our customers to do business with us,” said Brien McMahon, chief franchise officer, Radian. “With this integration, customers can obtain accurate Radian MI rate quotes with greater speed and accuracy.”

About The Author

Millennials Undeterred From Purchasing Homes Despite Rising Interest Rates

Millennials were not deterred from purchasing homes in October as the market continued to tighten, interest rates rose, and average loan amounts decreased. According to the latest Ellie Mae Millennial Tracker the average loan amount to Millennial borrowers for all closed loans was $189,686 in October, down from $192,005 in September, yet higher than last October’s average of $186,567. When men were listed as the primary borrower, the average closed loan in October was $198,864, compared to a much lower $188,607 when women were the primary borrower.


Featured Sponsors:

 

 


Even with rising mortgage rates, purchase loans still accounted for 88 percent of closed loans to Millennial borrowers in October, four percentage points higher than a year ago. Of all closed loans to this demographic, 68 percent were conventional loans, while 27 percent were for FHA loans, 2 percent were VA loans and 3 percent were undisclosed.


Featured Sponsors:

 


“Although housing prices and interest rates are still rising at a faster pace in 2018 than they have in previous years, those trends are not yet stopping Millennials from purchasing homes and putting down roots,” said Joe Tyrell, executive vice president of corporate strategy for Ellie Mae. “It is important for lenders to educate Millennials on the value of FHA loans that bring lower down payments and can allow these new homebuyers to stretch their dollar a little further even with rising interest rates.”


Featured Sponsors:

 


Additional findings from the October 2018 Ellie Mae Millennial Tracker include:

>>Interest rates on all loans rose to 4.96 percent, the highest percentage point since Ellie Mae started tracking this data in 2016, up from 4.87 percent in September, and up from 4.13 percent a year ago.

>>Refinances slowly began to rise in the fourth quarter, representing 11 percent of all home loans to Millennial borrowers.

>>Across all home loans, it took an average of 42 days to close last month. A year ago, it took one day longer at 43 days to close. Purchase loans took an average of 41 days to close last month, compared to an average of 42 days to close a year ago. Refinance loans closed in 48 days last month, on average, compared to 45 days in 2017.

>>The average FICO score for Millennial borrowers remained flat for the third consecutive month at 722, slightly down from 723 in July.

>>The average age of all Millennial borrowers remained flat at 29.7 from the previous month, and essentially flat from 29.3 in October 2017.

>>Millennial males (both single and married) were listed as the primary borrower on 60 percent of closed loans in October. Women were listed on 32 percent and the remainder did not specify a gender.