Ellie Mae released its Origination Insight Report for May, analyzing data from over 3-point 5 million loan
applications. The company found that refinances declined slightly for the month to 33 percent of all loans,
down from 37 percent in the previous month. Year-over-year, refinances declined as well from 58 percent
in May 2013. Ellie Mae reported that the average time to close a loan in May was 40 days, up slightly from
April’s average of 39 days.
The average mortgage rate for a 30-year, successfully closed loan decreased to 4-point 5 3 percent, the
lowest rate since November 2013. The profile of closed loans remained roughly the same, with the average
FICO score for successfully closed loans at 727, nearly identical to April’s figure of 726. The loan-to-value
ratio remained the same as it has been since the beginning of the year at 82 percent. In May 2014, 32
percent of closed loans had an average FICO score under 700, compared to 27 percent of loans in May
2013. The average credit score for denied applications was 689.
The National Housing Report from RE/MAX found that for the third month in a row, home sales in May
rose higher than sales in the previous month. May sales were 11-point 5 percent higher than in April, but
stubbornly remained below the same period last year by 9-point 9 percent. Of the 52 metros included in the
study, a mere 3 experienced lower sales than the previous month. Overall, home prices continued to rise,
with a 7-point 7 percent increase over the previous year.
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