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 the purchase mortgage share earlier in the year, according to Jonathan Corr, president and COO of Ellie Mae.
“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.