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Ellie Mae Releases April 2014 Origination Insight Report

Ellie Mae® (NYSE: ELLI), a leading provider of enterprise-level, on-demand automated solutions for the residential mortgage industry, today released its Origination Insight Report for April 2014. The report draws its data and insights from a robust sampling of the significant volume of loan applications that flow through Ellie Mae’s Encompass® mortgage management software and the Ellie Mae Network™. To get the full report, please visit http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/.

MONTHLY ORIGINATION OVERVIEW FOR APRIL 2014

              April
2014*
      March
2014*
      6 Months Ago

(October 2013)*

      1 Year Ago

(April 2013)*

Closed Loans
Purpose
Refinance             37%       40%       39%       58%
Purchase             63%       60%       61%       42%
Type
FHA             22%       22%       19%       22%
Conventional             64%       65%       68%       68%
Days to Close
All             39       40       45       46
Refinance             37       37       43       47
Purchase             40       41       46       44
ARMs vs. Fixed, Length, Rate
ARM %             7.6%       7.4%       5.6%       3.2%
15 Year %             12.2%       12.4%       15.5%       15.3%
30 Year – Note Rate             4.622       4.604       4.750       3.808

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

PROFILES OF CLOSED AND DENIED LOANS FOR APRIL 2014

       

Closed First-Lien Loans

(All Types)

      Denied Loans

(All Types)

FICO Score (FICO)       726       690
Loan-to-Value (LTV)       82       82
Debt-to-Income (DTI)       24/37       28/44

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 (i.e., the January 2014 applications) to calculate an overall closing rate of 55% in April 2014, down from 58% in March 2014 (see full report).

“Purchase share for all loans increased for the third straight month, jumping another three percentage points to represent 63 percent of all closed loans,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This is the highest percentage of purchase loans we’ve seen since we began reporting data in August 2011 and two percentage points higher than the previous high of 61 percent in October 2013.

“Also, average days to close loans dipped below 40 for the first time since we’ve been reporting data, falling to 39 days in April 2014. That’s the third straight month that days to close a loan declined. The average days to close a purchase loan has fallen seven days since January 2014.

“Looking at rates, the average 30-year rate on a closed loan increased for the first time since January, rising to 4.622 percent in April 2014.”

About the Ellie Mae Origination Insight Report

In 2013, approximately 3.5 million loan applications ran through Ellie Mae's Encompass mortgage management solution. The Origination Insight Report mines its application data from a robust sampling of approximately 57% of all mortgage applications that were initiated on the Encompass origination platform. Given the size of this sample and Ellie Mae’s market share, the Company believes the Origination Insight Report is a strong proxy of the underwriting standards that are being employed by lenders across the country.

The Origination Insight Report focuses on loans that closed or were denied in a specific month and compares their characteristics to similar loans that closed or were denied 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 and does not disclose client-specific or proprietary information.

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 a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Ellie Mae’s end-to-end Encompass® mortgage management solution provides one system of record that allows banks, credit unions and mortgage lenders to originate and fund mortgages and improve compliance, loan quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.

© 2014 Ellie Mae, Inc. Ellie Mae®, Encompass®, DataTrac®, Ellie Mae Network™, Total Quality Loan™, TQL™ and the Ellie Mae logo are registered trademarks or trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

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