Category Archives: Servicing

Ellie Mae: Share of purchase originations remains at record high

The share of purchase mortgage originations stayed at a record high in June, according to the latest Origination Insight Report from Ellie Mae.

Purchase mortgage originations jumped to a 6-year high in last month’s report, making up 68% of all closed loans in May. This was up 3% from April.

Now, in the latest June report, the share once again came in at 68% of all closed loans, maintaining the highest level since Ellie Mae began tracking the data in 2011.

On the other side, the percentage of refinances remained at 32% for the second straight month.

Broken down further, the percentage of conventional purchase loans increased to 63%, up two percentage points from the prior month. FHA purchase loans decreased slightly to 81% and VA purchase loans increased to 75%.

However, it’s important to note that VA and FHA loans only make up a small percentage of loans overall.

Jonathan Corr, president and CEO of Ellie Mae, noted that the percentage of home loan purchases managed to steady in June despite low inventory levels slowing the growth of home purchases

Inventory shortages, however, should hopefully start to go away, as homebuilders ready for the biggest year in a decade. In the latest housing starts report, building permits for single-family housing increased, showing the uptick in housing starts in June will continue in the months to come. One expert, who served as Fannie Mae’s chief economist for more than 20 years, says the upward trend will continue throughout 2017.

But until then, Ellie Mae found that the average 30-year note continued to decrease to 4.27% in June, down from 4.33% in May. This is higher than the latest Freddie Mac report, which put the 30-year fixed-rate mortgage at 4.03% for the week ending July 13, 2017.

In addition, the average time to close all loans increased by one day in June, rising to 43 days.  

Article source: https://www.housingwire.com/articles/40730-ellie-mae-share-of-purchase-originations-remains-at-record-high

loanDepot adds top 1% loan originator to team

loanDepot has announced the addition of Brian Decker, a top 30 loan originator, to its team.

Decker, who entered the mortgage industry 12 years ago, joins loanDepot’s team of more than 1,700 licensed loan officers and will serve as the retail lending manager for the company’s new Temecula, California, retail lending location.

Decker’s store features mello, loanDepot’s end-to-end digital lending platform that includes an intuitive web-based consumer portal, a mobile point-of-sale system, and a fully-digital mortgage loan application experience. 

 “loanDepot is revolutionizing the home lending industry by combining a laser focus on customer experience and technology,” said Chief Retail Production Officer Dan Hanson.  “Brian is joining us at an exciting time as our growth is accelerating in terms of products and services offered and technological advances to provide a faster homebuying process with more certainty for consumers.”

Decker is a top producing loan officer and ranks in the top 1% of originators. He closed 586 loans with more than $204 million in sales during 2016, according to the home-lending industry data source Scotsman Guide.

“loanDepot is shaping the future of our industry and I want to be part of that narrative,” Decker said. “I work with customers every day and I know being able to serve them information in the most palatable manner for them personally is exactly what they are craving. We can provide them with the best in-person and online experience to help them find their perfect dream home.”

Article source: https://www.housingwire.com/articles/40728-loandepot-adds-top-loan-originator-to-team

Despite inventory shortage, existing home sales surge in California

Despite being plagued with extremely low housing inventory, California still managed to post one of its busiest home sale months in years.

According to the latest report from the California Association of Realtors, existing home sales in California took off in June to their highest pace in nearly four years.

Closed escrow sales of existing, single-family detached homes in California came in at a seasonally adjusted annualized rate of 443,150 units in June. This is up 3.3% from the revised 428,890 level in May and up 2.4% compared with home sales in June 2016 of a revised 432,880. As a broader view, year-to-date sales are running 3.2% ahead of last year’s pace.

And notably, existing home sales remained higher than the 400,000 benchmark for the 15th consecutive month.

CAR gathers the data from more than 90 local Realtor associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2017 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.This chart below shows the change in sales since January 2005.

Click to enlarge

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(Source: CAR)

But once again, the surge in home sales did come with roadblocks, as new statewide active listings have declined for a full two years straight in June, falling 13.5% from a year ago.

CAR noted the increase in sales, coupled with the double-digit decline in active listings, lowered June’s available housing supply.

As a result the states Unsold Inventory Index fell even lower, dropping from 2.9 months in May to 2.7 months in June.

The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.

“A lack of available homes for sale continues to be the largest single factor influencing California’s housing market,” said CAR President Geoff McIntosh. “With active listings 13.5% lower than last June, we’ve now experienced a full two years in which active listings have fallen on a year-over-year basis and the lowest inventory level this year. Would-be sellers aren’t listing their homes as many of them would also face an inventory challenge if they were to turn around and buy another property.”

At the same time, the state’s median home price is also increasing, as seen in the chart below. The statewide median price remained above the $500,000 mark for the fourth straight month, reaching the highest level since August 2007.

The median price was up 0.9% from a revised $550,080 in May to reach $555,150 in June, and was 7% higher than the revised $518,830 recorded in June 2016.

Click to enlarge

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(Source: CAR)

As California continues to face housing shortages, the nation as a whole is projected to witness the biggest year for homebuilders in a decade. So while the state is currently in a shortage, things should hopefully be looking up soon for homebuyers as homebuilder help fix shortage.

In the latest housing starts report, building permits for single-family housing increased, showing the uptick in housing starts in June will continue in the months to come. One expert, who served as Fannie Mae’s chief economist for more than 20 years, says the upward trend will continue throughout 2017.

Article source: https://www.housingwire.com/articles/40723-despite-inventory-shortage-existing-home-sales-surge-in-california

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