Time to close all loans remained steady at 44 days according to the latest Origination Insight Report released by Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. The average time to close a purchase also remained steady at 45 days in April, while the time to close a refinance increased to 44 days in April, up from 41 days in March. Similarly, the average time to close FHA loans increased from 44 days in March to 45 days in April. Time to close VA loans remained steady at 48 days.
Closing rates for all loans decreased to 69% in April, down from the high of 71% in March. Refinance closing rates decreased to 65% in April, down from 66% in March, while purchase closing rates fell to 73%, down from 75% in March.
In terms of loan purpose, purchases increased to 59% of all closed loans, up from 55% in March.
Ellie Mae’s new FICO distribution charts in the April Origination Insight Report showed that 68% of purchases and 69% of refinances had FICO scores of 700 or above. Thirty-one percent of purchases had a FICO score between 600–699, while only 26% of refinances had FICO scores between 600–699. Conventional loan FICO distribution showed 81% of scores above 700, while FHA FICO distribution showed only 39% of FICO scores over 700 and 56% of FHA loans with FICO scores between 600 and 699.