The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Ellie Mae: Low interest rate environment sends refinance activity soaring in August

Refinances accounted for 43% of loans during August

Ellie Mae’s latest Origination Insight report shows that the 30-year note rate dropped for the eighth consecutive month as of August, spurring an increase in the percentage of refinances.

In August, the 30-year note rate dropped to 4.07%, falling from 4.18% in July. This decrease attributed to an uptick in refinances, which accounted for 43% of all loans during the month, according to the report.

“The drop in interest rates month-over-month continues to drive up the percentage of refinances, which accounted for 43% of all loans in August, up from 38% the month prior,” Ellie Mae stated. “Purchase percentages as a share of all loans dropped under 60% for the first time in 2019.”

To get a meaningful view of lender pull-through, Ellie Mae said it reviewed a sampling of loan applications initiated 90 days prior to calculate an overall closing rate of 77.3% in August.

According to Ellie Mae, closing rates on purchases increased to 80% during the month, while closing rates for refinances dropped slightly to 72.5%.

However, the percentage of refinances increased across the board last month, with FHA refinances climbing from 24% to 27%.

Conventional refinances rose from 42% in July to 46% in August,  and VA Refinances ticked up from 31% in July to 34% in August.

Overall FICO scores increased from last month’s 731 to 734, while LTV decreased to 78 and DTI remained at 24/37, according to the report.

Interest rates continue to decline and we’re seeing homeowners capitalize on the refinance opportunity throughout the month of August,” said Jonathan Corr, president and CEO of Ellie Mae. “As we enter the fall and the market expects further rate cuts from the Fed, we will watch to see if the share of refinances continues to climb further

NOTE: Ellie Mae’s Origination Insight Report focuses on loans that closed in a specific month, comparing their characteristics to similar loans that closed three and six months earlier. The closing rate is calculated on a 90-day cycle instead of a monthly basis.

Most Popular Articles

Ex-loanDepot COO: Tony Hsieh cut corners to boost volume

The suit, filed by former COO Tammy Richards, accuses loanDepot CEO Anthony Hsieh of ordering the sales team to “trust [their] borrowers” and close loans, disregarding proper underwriting etiquette. 

Sep 23, 2021 By and

Latest Articles

UWM announces Bolt underwriting system for brokers

In a keynote session about the future of mortgage, UWM CEO Mat Ishbia previewed Bolt, an underwriting system that he said would enable brokers to underwrite a loan in 15 minutes or less, which will go live on Monday, Sept. 27.

Sep 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please