Ellie Mae says Loan Closing Rate Highest in Four Years

Ellie Mae said thisrnweek that the closing rate for purchase mortgages reached 70.7 percent in Julyrnup from 69.0 in June.  This is thernhighest rate since the company started tracking this data in August 2011 and isrncalculated based on a sampling ofrnloan applications initiated 90 days earlier. </p

The closing rate forrnall loans was 66.2 percent.  The highestrnrate was for VA purchase loans at 72.5 percent and the lowest was for FHArnrefinances at 42.5 percent.  Those loansrnwere the only ones for which the closing rate did not improve over June.</p

The share ofrnpurchase loans rose to 63 percent, up 22 percent since February.  The refi share for all loan types was belowrnthe corresponding average share for all of 2014.  The purchase share of conventional loans rosern3 percentage points from June to 54 percent, the highest since last September.</p

Sixty-two percent ofrnloans originated during the month were conventional loans, 24 percent were FHA,rnand 10 percent were VA.  Thesernpercentages were essentially unchanged from the previous month. </p

The number of daysrnrequired to close loans was also about the same as in June, 48 days.  Refinances required an average of 52 days andrnpurchase loans 45 days.  </p

The average FICO</bscore on a closed loan dropped 2 points to 725, the second decrease in as manyrnmonths but only 1 point below the 2014 average. rnThe average score on a denied loan, 668 was 4 points lower than in Junernand down by 20 points from the average for all of 2014. The loan-to-value ratiornfor a closed loan was 81, unchanged since May, and the debt to income ratio wasrnalso static at 25/38.</p