Industry technology provider Ellie Mae’s latest monthly sample data suggest originators who use its system continued to close an increasing amount of Home Affordable Refinance Program loans through yearend.
In a press release, the company’s chief operating officer Jonathan Corr said the percentage of closed conventional refinances with loan-to-value ratios of 95% or higher increased to 11.4% in December from 9.62% the previous month.
Corr, who called the December closed loan percentage in this area a strong indicator of HARP 2.0 activity, said that figure has not been this high since the company began tracking the data in October of last year.
The percentage of loans that closed overall during December inched up to 54.7% from 52.3% the previous month, but both purchases and refinances took longer, something Corr said suggested the two trends are interrelated.
He said the average refinance took 57 days to close, which was almost a week longer than the previous month, when it took 51 days. Purchases took 51 days on average to close, up from 48 days in November.
Sixty-nine percent of loans closed during December were refinances, up slightly from 68% the previous month. Six months ago in June, refinances constituted just 54% of closed loans, according to Ellie Mae.