Ellie Mae: Mortgage Refinancings Increased In November

Mortgage refinancings increased six percentage points in November, month-over-month, according to Ellie Mae's Market Insight Report.

Jonathan Corr, president and chief operating officer of Ellie Mae, says it was the first time in 10 months refinance share increased on a month-over-month basis.

‘This was probably attributable to the quarter of a point decline in the interest rates on the 30-year note in November, which declined to 4.526,’ Corr says in a release.

Corr noted that HARP-related refinancing activity also increased, as conventional refinances at 95%-plus loan-to-value (LTV) rose to 8.30% in November from 7.30% in October.

‘Credit requirements also continued to loosen,’ Corr adds. ‘The average FICO score for all closed loans in November 2013 was 729, compared to 750 in November 2012. Also, 30 percent of closed loans had an average FICO score below 700 in November 2013, compared to 22 percent in 2012.

According to the report, the average time to close a loan in November decreased to 42 days, with refinances falling to 37 days, the lowest since Ellie Mae began tracking in August 2011.

Purchase loans represented 55% of the market, while refinancings represented 45%. In October, purchase loans represented 61% of the market, while refinancings represented 39%.

A year ago in November refinancings represented 68% of origination volume while purchase loans represented 32%.

Ellie Mae's Market Insight Report is based on data flowing through its Encompass mortgage management software and the Ellie Mae Network, representing more than 20% of all originations in the U.S.


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