Ellie Mae: Purchase Share Ends 2015 on Upswing

Ellie Mae, Pleasanton, Calif., said purchase loans represented 56 percent of all closed loans in 2015, while refinances as a percentage of lenders’ overall loan volume decreased for the first time in seven months from 46 percent in November to 43 percent in December.  

The company’s monthly Origination Insight Report said 2015 ended with the average time to close a loan holding steady at 49 total days. While the average time to close a refinance fell from 49 days to 47 days, purchases climbed by one day to 50. The average time to close FHA and conventional loans remained largely unchanged at 49 days, while VA loans increased from 50 to 52 days.  

“While the time to close loans remained consistent from November, the 49-day cycle is still a week longer than the time to close at this same time last year,” said Ellie Mae president and CEO Jonathan Corr.  

Ellie Mae also reported the average FICO score on closed loans increased for the first time since May from 720 in November to 722 in December, while the average FHA refinance FICO score increased to 651, up from 648 in November.  

The report said closing rates for all loans remained high at 67 percent in December, dropping slightly from 68 percent in November, with November representing the highest percent in all of 2015. Closing rates on refinances reached their highest point of the year at 63 percent in December, while closing rates on purchases dropped slightly from 72 percent in November to 71 percent in December.  

Ellie Mae reported the average 30-year rate for all loans increased slightly to 4.26 percent. Conventional purchase closing rates climbed above 72 percent for the first time since Ellie Mae began tracking data in August 2011.