The new RESPA-TILA Know Before You Owe regulations, commonly
called TRIID, was cited as a probable reason for a three day increase in the
average time it took to close a mortgage loan in November compared to
October. Ellie Mae said the average
application-to-closing time of 49 days was the longest time to close a loan
since February 2013. Conventional and
FHA loans each took 49 days while VA loans took an average of 50.
Ellie Mae's Origination
Insight Report also showed the average FICO score on loans originated in
November was 721, a decrease of 1 point from October and the sixth month the
average score has declined. Average FICO
scores for all loans has dropped 10 points since January. Ellie Mae said the driver of the November
reduction appears to be a decline, for the second month in a row, of FHA
Closing rates for all loans reached
their highest point, 68.4 percent, since Ellie Mae began tracking data in
August of 2011. The closing rate on purchase loans increased to 72 percent.
Loans for home purchases had a 53
percent share of all originations during the month - down 2 percentage points
from October. The refinancing share rose
to 46 percent from 44 percent.
are beginning to see the anticipated impacts of the Know Before You Owe changes
that went into effect in October," said Jonathan Corr, president and CEO of
Ellie Mae. "The time to close loans has crept up to 49 days, a 3-day increase
over October, while the closing rate on purchased loans increased to 72
percent. Additionally, we've seen the percentage of refinances increase to 46
percent of all closed loans, most likely driven by a recent dip in rates over
the last three months since the 2015 high point in August."
Conventional loans made up 64 percent
of all originations while FHA loans comprised 23 percent, both unchanged from
the previous month. The VA share ticked
up one percentage point to 10 percent.
The Origination Insight Report mines
its application data from a sampling of approximately 66 percent of all
mortgage applications that were initiated on the Encompass® all-in-one mortgage