The average number of days to close a mortgage loan fell to 46 days in February – down from 50 days in January, according to Ellie Mae’s Origination Insight Report.
That drop in the average number of days to close could be a sign that lenders are now having an easier time with – or are getting used to – the Consumer Financial Protection Bureau’s new TILA-RESPA Integrated Disclosure rules.
The new rules, which require lenders to provide consumers with a “closing disclosure” document outlining the terms of the loan three days before the closing, were cited as a probable cause for an increase in the number of days to close that occurred in November (49 days), December (49 days) and January (50 days), according to the monthly report.
The average of 46 days is about the same average in October, which is the month the rules took effect.
Refinances accounted for 46% of all mortgage activity in February – down from 47% in January, according to the report. Purchases represented about 52% of all originations – about flat compared with the previous month.
The closing rate for all loans was about 69.9%, up slightly from 68.4% in January.
For more, click here.