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Lenders’ Purchase Share Continues to Rise, According to Latest Ellie Mae Origination Insight Report

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Purchase loans as a percentage of lenders’ overall mortgage volume eclipsed 50 percent in April, according to the latest Origination Insight Report released by Ellie Mae(R) (NYSE:ELLI) , a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Last month’s overall purchase share of 52 percent represented a 6 percent jump from March.

According to the latest report, the average closing period for all loans rose from 44 to 45 days. Meanwhile, the overall closing rate on all loans exceeded 65 percent for the first time since reporting began in August 2011, reaching 65.2 percent.

“An improving economy and ongoing attractive rates seem to be contributing to the rise in purchase percentage as we move full speed into the spring buying season,” said Jonathan Corr, president and CEO of Ellie Mae.

The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass(R) 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.

MONTHLY ORIGINATION OVERVIEW FOR APRIL 2015

April 2015* March 2015*

6 Months Ago
(Oct. 2014*)

1 Year Ago

(April 2014*)

Closed Loans
Purpose
Refinance 47% 53% 40% 37%
Purchase 52% 46% 60% 63%
Type
FHA 24% 22% 19% 22%
Conventional 64% 66% 65% 64%
VA 9% 9% 11%
Days to Close
All 45 44 40 39
Refinance 48 45 39 37
Purchase 43 44 40 40
Percentage of ARM and Fixed Loans
ARM % 4.5% 4.2% 6.3% 7.6%
15 Year % 10.3% 11.1% 9.6% 12.2%
30-Year Rate
Average 4.062% 4.041% 4.371% 4.622%

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

PROFILES OF CLOSED AND DENIED LOANS FOR APRIL 2015

Closed First-Lien Loans
(All Types)
Denied Loans

(All Types)

FICO Score (FICO) 729 674
Loan-to-Value (LTV) 80 83
Debt-to-Income (DTI) 24/38 28/47

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 January 2015 applications-to calculate an overall closing rate of 65.2 percent in April 2015 (see full report).

About the Ellie Mae Origination Insight Report

The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that are initiated through Ellie Mae’s Encompass all-in-one mortgage management solution. In 2014, approximately 3.7 million loan applications ran through Encompass. 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 non-qualification.

The Origination Insight Report details aggregated anonymized data. The report 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 Encompass(R) all-in-one 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.

(c) 2015 Ellie Mae, Inc. Ellie Mae(R), Encompass(R), AllRegs(R), DataTrac(R), Ellie Mae NetworkTM Total Quality LoanTM, TQLTM and the Ellie Mae logo are 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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