twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Origination News | Lender Ranking | Fundings by Lender | Statistics
Quarterly residential mortgage production by lender. Subprime, Alt-A, home equity and conforming originations. Volume by quarter since 2003.


Closing Rates Rise, Refi Turn Times Slow

Average loan takes 5 days longer to close in December

Jan. 16, 2013

By Mortgage Daily staff


Last month, the number of days it took to close a home loan slowed mostly as a result of longer processing times on refinances. But a bigger share of overall loan applications are converting to funded loans.

During all of 2012 -- a year that saw soaring originations as a result of record-low interest rates and the Home Affordable Refinance Program -- it took an average of 48 days to close a home loan. The process took 49 days for refinances and 46 days for purchase transactions.

Refinances accounted for 62 percent of last year's business, and purchase share was 38 percent.

The data, reported by Ellie Mae, reflect a one-third sampling of all mortgage applications initiated on the Encompass origination platform. Ellie claims that 3 million loan applications, or 20 percent of all mortgage originations, were run through its Encompass360 mortgage management software during 2012.

The average borrower had a credit score of 748 last year. Ellie noted that around 37 percent of 200 million Americans have a score of at least 748.

The average debt-to-income ratio for 2012 was 23/34 percent.

On purchase transactions, borrowers put down an average of 21 percent.

During just December, the average loan took 55 days to close, slowing from 50 days the prior month and 47 days in the same month during the prior year. Refinance turn times jumped to 57 days from 51 days in November, while purchase financing turnaround slowed to 51 days from 48 days.

More than half -- 55 percent -- of applications started three months earlier closed during December. The closing rate improved from 52 percent a month earlier and 48 percent a year earlier.

The refinance closing rate jumped to 52 percent from November's 48 percent. On purchase financing, the closing rate rose to just over 61 percent from just under 61 percent.

The average FICO score slipped to 748 from 750 in November but inched up 2 points from a year prior. Lenders tightened their purse strings somewhat based on denied loans, with the average credit score creeping up to 709 from 707.

There was no month-over-month change in the average loan-to-value ratio, which was 79 percent. The average LTV, however, has climbed from 77 percent in the final month of 2011.

On denied loans, the average LTV slipped to 85 percent from 86 percent.

"Closed conventional refinances with LTVs of 95 percent-plus, a strong indicator of HARP 2.0 activity, jumped up from 9.62 percent in November 2012 to 11.40 percent in December 2012, the highest it has been since we began tracking this data in October 2011," Ellie Mae Chief Operating Officer Jonathan Corr said in the report.

At 23/34, the average debt-to-income ratio hasn't changed for five months. A year previous, the average DTI was 24/35.

Last month's refinance share was 69 percent, up from 68 percent in November and 60 percent in the final month of 2011.

The share of closed loans that was insured by the Federal Housing Administration was 19 percent, the same as in November. FHA share exceeded a quarter in December 2011.

Just 2.1 percent of last month's business was adjustable-rate mortgages, though that was up from 2.0 percent in November. ARM share was 5.4 percent in the same month a year prior.

next story

back to current headlines


FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.


Refinance News | Refinance Share Statistics
News about refinancing programs, pricing and production. Stories about the H o m e
Affordable Refinance Program, H A R P 2.0 and other Making Home Affordable coverage.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders