Purchase Loans Exceeding Mortgage Refinance in April According to Ellie Mae

The share of home purchase loans in the overall mortgage volume of lenders reached 52% in April. This is revealed in the Origination Insight Report of Ellie Mae for April 2015.

The share of home purchase loans rose 6% from 46% in March. The share of mortgage refinance activity declined to 47% in April from 52% in April. April 2015 is the first month during which the share of purchase originations is larger than the share of refinance originations since December 2014.

The share of conventional mortgage originations went down to 64% in April from 66% in March. The share of FHA loans rose 2% on a month-over-month basis. It reached 24% in April moving up from 22% in March. The share of VA loans in the total volume of mortgage originations remained unchanged at 9%.

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The average time necessary for closing a mortgage loans rose slightly in April. It increased to 45 days compared to 44 days in the previous month. The average number of days needed to close a loan for mortgage refinance increased to 48 days from 45 days in March. The average period required for closing a home purchase loan decline to 43 days in April from 44 days in March.

In April, the average FICO score on closed first-lien loans was 729. The average loan-to-value ratio (LTV) was 80%. The average debt-to-income ratio (DTI) was 24/38.

The president and CEO of Ellie Mae, Jonathan Corr, commented the improvement in the U.S. economy and the attractive mortgage rates contributed to the rise in the purchase share occuring with the development of the spring homebuying season.

The data for the Origination Insight Report of Ellie Mae is taken from sampling around 66% of mortgage applications started through the company’s Encompass all-in-one mortgage management solution. The Report is focused on the approved and denied loan applications during the month.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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