• Mortgage News Daily summed up Ellie Mae’s latest “Origination Insight Report” (covering 20% of mortgage originations and coming through a 33% sample of Ellie’s platform) showing that “the time needed to close a mortgage loan has increased by almost 25 percent over the last year, from an average of 40 days to 49 and it was refinances that drove the change.
  • The time needed to close a loan for purchase increased from 43 days in August 2011 to 47 days in August 2012 while during the same period the average time required to close a refinancing increased by two full weeks to 51 days.
  • 61% of loans closed in August were for the purpose of refinancing compared to 58% in July.” Interestingly “the 61%/39% refinancing/purchase split in August was identical to that of one year earlier.
  • FHA loans represented 21% of all loans closed in August and conventional loans had a 70% share.
  •  Pipeline hedgers were especially interested in the closing rates:  48% versus 46% in July 2012.  The closing rate for refinancing was 41% and for purchases 60%.
  • For more fun with numbers: ARM’s were less than 3% of fundings in August, the average closed loan had a FICO score of 750, LTV of 79%, and a DTI of ratio of 23/34. One year earlier those numbers were 741, 79, and 25/36. 
  • At the same time, denied loans had an average FICO score of 708 in August, an LTV of 88, and a DTI of 27/43 where one year earlier those numbers were 696, 82, and 29/45. Lastly, “The percentage of refinances at 95%-plus LTV dropped for the third consecutive month, from 10.2% in June and 8.7% in July to 7.74% in August, a possible sign that HARP 2.0 continues to be cooling off.”

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