“The average FICO dropped from 749 in January 2013 to 745 in February 2013, the lowest point since May 2012. Meanwhile, the average loan-to-value hit 80% for the first time since July 2012 and the backend debt-to-income ratio was 35% for the first time since June 2012––suggesting that the credit box may be expanding,” said Jonathan Corr, president and chief operating officer of the origination technology provider, in a press release.
Corr added, “HARP 2.0 continues to show traction with conventional refinances at 95%-plus LTV rising for the sixth month in a row to 12.1% in February 2013, the highest level since we began tracking in October 2011.”
He said the data, which are drawn from a sampling of approximately 44% of all mortgage applications initiated on the Encompass origination platform during the month, also show “the purchase market is strengthening as the run-up begins for the spring buying season, rising from 27% of all closed loans in January 2013 to 32% in February 2013.”
Corr said the numbers also show “time to close improved considerably, dropping to 50 days in February 2013 from 54 days in January 2013.”