Magazine article Mortgage Banking
Ellie Mae Finds Lenders Taking Longer to Close Loans
Ellie Mae Inc., Pleasanton, California, released results from its latest Origination Insight Report on Oct. 17, and the findings show it is taking lenders much longer to close both purchase and refinance loans than six months ago. The average days to close for purchase originations reached 47, up from 42 days six months ago. The days to close for refinancing applications hit 53, up from 42 days six months earlier.
The latest report covers September 2012 origination activity drawn from a sampling of loan applications that flow through Ellie Mae's Encompass36o® software and its Ellie Mae Network(TM). The company says the data and findings are drawn from a sampling that represents 20 percent of all mortgage applications taken in the United States.
The September report also shows that the share of loans that are Federal Housing Administration (FHA) mortgages continues to drop. Six months ago, the Ellie Mae report found the FHA share was 28 percent. In the September report, that share was down to 19 percent.
"In September, the share of conventional loans continued to outpace FHA loans," said Jonathan Corr, chief operating officer of Ellie Mae. …