Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

How servicers continue to protect neighborhoods amid COVID

We spoke with MCS CEO Caroline Reaves about self-service technology, the shift to virtual and how servicers can prepare for post-COVID success by improving processes today.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

MortgageReal Estate

Goodbye new normal: Time to close a loan ticking back up

Number of days now close to yearly high

After settling back around 46 days, the time to close a loan is starting to tick higher again, getting close to this year's high, according to the latest Origination Insight Report from Ellie Mae.

The most recent report stated it took 49 days on average to close a loan in November. Separated out, time to close came in at 51 days for refinance loans and 47 days for purchase.

Ellie Mae’s report, which is pulled from a “robust” sampling of approximately 75% of all mortgage applications that were initiated on Ellie Mae’s Encompass system, typically shows a variance in the time to close for refinance mortgages versus purchase mortgages, but it appears that gap is calming down as well.

The industry became hyper focused on the time it takes to close a loan after the implementation of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule last year, since the rule was expected to drastically impact and delay the closing process.

To put it in perspective, before the rule went into effect on Oct. 3, 2015, it took 47 days to close a loan in August 2015, 46 in September 2015 and 46 in October 2015.

In the following month, right after TRID took effect, the time to close shot up to 49 days, reaching a yearly high in January 2016 of 50 days.

But this didn't last long, and come February 2016, the time was already back down to 46 and even went as low as 44 days in March and April.

And finally, by September 2016, it started to look like the time to close a loan settled at 46 days.

That is, until this latest report. After August, the time started to edge higher again, reaching 48 days in September and October and then 49 in this latest November report.

The chart below showcases all of the above data.

Click to enlarge

Ellie Mae

(Source: Ellie Mae)

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

Senate Finance Committee unanimously approves Yellen

In a unanimous 26-0 vote, the Senate Finance Committee approved Janet Yellen’s nomination to the U.S. Treasury Secretary on Friday. Senate Majority Leader Chuck Schumer said there would be no other votes in the Senate on Friday, meaning there will not be confirmation of Yellen as Treasury Secretary until this weekend or next week, if she is approved.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please