• Home
  • About
  • Press Releases
  • September Origination Insight Report from Ellie Mae sees Percentage of Closed Purchase Loans Increase


Press Release

September Origination Insight Report from Ellie Mae sees Percentage of Closed Purchase Loans Increase

PLEASANTON, Calif. – October 17, 2018 – The percentage of closed purchase loans increased in September to 71 percent of total loans according to the Origination Insight Report from Ellie Mae® (NYSE:ELLI), the leading cloud-based platform provider for the mortgage finance industry. Closed refinances represented 29 percent of total closed loans, returning to the July average.

In September, the average 30-year interest rate for all loans decreased for the first time in 2018 to 4.91 percent, down from the 2018 high of 4.92 percent in August. The percentage of Adjustable Rate Mortgages (ARMs) increased to 7.2 percent in September, up from 6.6 percent the month prior.

“We see refinances remain at a low percentage of aggregate closed loans and purchase inventory continues to be tight as we move into the fall,” said Jonathan Corr, president and CEO of Ellie Mae. “We did see the first reduction in interest rates this month and with that, the percentage of ARMs began to increase. However, we believe that the seasonal decline in home buying and continued affordability constraints will shape the purchase market.”

Other statistics of note in September included:

  • Closing rates for all loans held steady at 71.1 percent for the second month, the highest percentage in 2018. Closing rates on purchase loans increased to 76.4 percent, up from 75.9 percent the month prior. Closing rates on refinances increased to 64.4 percent in September, up from 63.5 percent in August.
  • The time to close all loans increased to 44 days in September, up from 43 days in August. Time to close a purchase loan held steady at 45 days, while time to close a refinance increased to 42 days in September, up from 38 the month prior.
  • Overall FICO scores increased by 3 points to 727 in September. LTV held at 79 for the second month while DTI decreased to 25/39.

The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.


6 Months Ago
(Mar. 2018)*
1 Year Ago
(Sept. 2017)*
Closed Loans
Refinance 29% 32% 38% 38%
Purchase 71% 68% 62% 62%
FHA 20% 20% 20% 20%
Conventional 65% 66% 66% 66%
VA 10% 10% 10% 10%
Days to Close
All 44 43 41 43
Refinance 42 38 37 40
Purchase 45 45 43 44
Percentage of ARM and Fixed Loan Volume
ARM % 7.2% 6.6% 6.3% 5.5%
30-Year Rate
Average 4.910% 4.920% 4.690% 4.210%

*All references to months should be read as month ended.

  Closed First-Lien Loans (All Types)
FICO Score (FICO) 727
Loan-to-Value (LTV) 79
Debt-to-Income (DTI) 25/39

More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/.

To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior—or the June 2018 applications—to calculate an overall closing rate of 71.7 percent in September 2018 (see full report).

About the Ellie Mae Origination Insight Report

The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or nonqualification.

The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass origination platform.

News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.

About Ellie Mae

Ellie Mae (NYSE:ELLI) is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae’s technology solutions enable lenders to originate more loans, reduce origination costs, and shorten the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.


Erica Harvill
Ellie Mae, Inc.
(925) 227-5913

Caitlin Coffee
(312) 635-8204

# # #

© 2018 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®, Velocify®, the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

Schedule a demo with an ICE Mortgage Technology solutions expert to learn how we can help you improve your digital mortgage experience.

* Required information

By submitting this form, you agree to receive marketing communications from ICE Mortgage Technology. You can unsubscribe at any time. Your personal information will be handled according to ICE Mortgage Technology’s Privacy Policy.