Purchase mortgage share rose to 54% of closed loans in December, according to technology vendor Ellie Mae’s latest Origination Insight Report.
This is double
“2013 closed with the loosest credit requirements of the year,” with “31% of closed loans had FICO scores below 700, compared to 21% in December 2012,” Corr says in the report.
Home Affordable Refinance Program-related refinancing activity rose for the second consecutive month with refinancing at 95%-plus loan-to-value ratios above 12%, the highest percentage since August.
The respective distribution of refinance loans vs. purchase loans changed to 46%/54% in December 2013 from 69%/31% in December 2012.
The respective distribution of Federal Housing Administration loans vs. conventional loans changed to 20%/69% in December 2013 from 19%/73% in December 2012.
Days-to-close for all loans in December 2013 was down 12 days year-over-year at an average of 43 days. Days-to-close for refinance loans in December was down 17 days year-to-year at 40 days.