The average time to close as measured by Ellie Mae's monthly survey was shorter than it's been since 2015, when the implementation of new disclosures lengthened the timelines.
"The purchase market continued to heat up in March, representing 63% of total closed loans," said Jonathan Corr, president and CEO of Ellie Mae, in a press release. "We also saw the time to close shrink to the shortest duration since February 2015 at 43 days across all closed loans."
In February 2015, it took 38 days to close a loan. Thereafter, the market went through a long stretch where the average closing time was no shorter than 44 days, as it was in March of that year. In February 2017, it took 46 days to close the average loan, and in March 2016 it took 44 days.
Integrated disclosures implemented under the Truth in Lending and Real Estate Settlement Procedures Acts in October 2015 had boosted the average days-to-close by about 10 days at one point.
Many lenders and vendors had expected the so-called TRID effect on closing times to be temporary as they got used to the compliance procedures and improved related operations. Reduction in refinancing volumes due to slightly higher rates and a seasonal lull in some areas also may have contributed to shorter closing timelines recently. The refinancing share dropped to 37% from 43% in February 2017, and from 45% in March 2016.
Millennials in particular have been closing loans faster, according to a separate breakout of the survey data Ellie Mae releases after its broader Origination Insight report each month.
Ellie Mae's report is based on data from lenders who use the company's loan origination system.