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.


Originators Improve Closing Rate

Lenders ease underwriting requirements in February

March 20, 2013

By Mortgage Daily staff


Loan originators are finding their groove in today's new environment -- closing a bigger share of applications than during any month since at least 2011. Meanwhile, lenders have loosened their purse strings as refinances represented a smaller share of overall business.

The closing rate was 56.8 percent last month. The rate, which is defined as the "percentage of loan applications begun in the previous 90-day cycle that have closed," improved from 55.0 percent in January.

February's closing rate was also better than a year prior, when the ratio was just 47.9 percent, and the highest since tracking began in November 2011.

The findings were reported by Ellie Mae Inc. and based on a 44 percent sampling of closed loan applications that were run through its Encompass360 system and the Ellie Mae Network. The Pleasanton, Calif.-based company claims that 20 percent of all home loans originated last year were processed through Encompass360.

On refinances, the closing rate climbed to 54.6 percent from 52.6 percent in January. The ratio for purchase financing rose to 61.7 percent from 60.8 percent.

For the second month in a row, the time to close a loan fell. It took 50 days to close a home loan in February, down from 54 days the prior month. But turnaround was still slower than the same month in the prior year, when it took 44 days to process and close a loan.

Refinance turn times sped up to 51 days from 55 days in January, while purchase turnaround dropped to 47 days from 51 days.

Refinance share fell to 68 percent from 73 percent in January. Refinance share was little changed from 67 percent in February 2012.

Lenders eased up on underwriting last month, with the average FICO score on closed loans dropping to 745 from 749 in the first month of this year. FICO scores have been reduced from 750 in the same month during 2012.

It was the same story for denied loan applications, with the average FICO score reduced to 705 from 707. But borrowers who were denied in February of last year had an average score of just 699.

Similarly, the average loan-to-value ratio rose to 80 percent from 79 percent in January and 76 percent a year prior. The average LTV ratio on denied applications was unchanged at 85 percent but was up from 83 percent in February 2012.

Ellie Mae President and Chief Operating Officer Jonathan Corr suggested that "that the credit box may be expanding."

At 23/35 percent, average debt-to-income ratios on funded loans were little changed, creeping up from 23/34 percent a month earlier and a year earlier. DTI ratios slipped to 27/43 percent from 27/44 percent in January on denied applications.

While the share of originations insured by the Federal Housing Administration rose to 20 percent last month from 18 percent, it was off from a quarter a year earlier.

A slightly larger share of borrowers went with an adjustable-rate mortgage last month, with ARM share inching up to 2.3 percent from 2.1 percent. ARM share was 4.3 percent in the year-earlier period.

Fifteen-year share slipped to 16.8 percent from 16.9 percent in January and was down from 19.6 percent in the same month last year.

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