Aggregate Ellie Mae loan origination system data show the percentage of conventional refinances with loan-to-value ratios of 95% or higher was at 9.62% in November, suggesting Home Affordable Refinance Program activity remains relatively strong.
Ellie Mae chief operating officer Jonathan Corr told this website that the HARP percentage has fluctuated over the course of the year, starting at around 2% or 3%, increasingly to as high as 11% in May, dropping to as low as 7% or 8% in the summer before climbing a bit again in the last three months.
However, recent Federal Housing Finance Agency data show HARP refinances with LTVs above 125% dropped 20% in October from the previous month, and borrowers in October with LTVs above 105% represented 45% of HARP activity as compared to 50% the previous month.
Ellie Mae in November found the total percentage of refinances among all loan types closed during the month slipped by one percentage point to 68%.
The percentage of conventional loans among all loans closed during the month also declined by 1%. Conventional loans represented 73% of the total, according to Ellie, which calculates its data based on a sampling of about one-third of the applications originated on its technology platform that close during the month.
LTVs overall averaged 79% for closed first-lien loans in November, up one percentage point from October.