Ellie Mae's Origination Insight Report also showed the average FICO score on loans originated in November was 721, a decrease of 1 point from October and the sixth month the average score has declined. Average FICO scores for all loans has dropped 10 points since January. Ellie Mae said the driver of the November reduction appears to be a decline, for the second month in a row, of FHA scores.
Closing rates for all loans reached their highest point, 68.4 percent, since Ellie Mae began tracking data in August of 2011. The closing rate on purchase loans increased to 72 percent.
Loans for home purchases had a 53 percent share of all originations during the month - down 2 percentage points from October. The refinancing share rose to 46 percent from 44 percent.
"We are beginning to see the anticipated impacts of the Know Before You Owe changes that went into effect in October," said Jonathan Corr, president and CEO of Ellie Mae. "The time to close loans has crept up to 49 days, a 3-day increase over October, while the closing rate on purchased loans increased to 72 percent. Additionally, we've seen the percentage of refinances increase to 46 percent of all closed loans, most likely driven by a recent dip in rates over the last three months since the 2015 high point in August."
Conventional loans made up 64 percent of all originations while FHA loans comprised 23 percent, both unchanged from the previous month. The VA share ticked up one percentage point to 10 percent.
The Origination Insight Report mines its application data from a sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution.
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