Average Time to Close a Loan Increases to 49 Days
RISMEDIA, Tuesday, December 29, 2015— The average time to close a loan increased by three days to 49 total days in November, the longest time to close since February of 2013, according to the latest Origination Insight Report released by Ellie Mae®. The average time to close FHA, Conventional and VA loans all increased to 49, 49 and 50 days, respectively. The increase could be due to lenders adjusting to the new RESPA-TILA (Know Before You Owe) regulations. Ellie Mae’s data also shows that the average FICO score on all closed loans fell to 721, marking the sixth consecutive month of decline. The driver of the FICO reduction appears to be average FHA refinance FICO scores falling for the second straight month to 648. Closing rates for all loans reached their highest point, 68 percent, since Ellie Mae began tracking data in August of 2011. The closing rate on purchase loans increased to 72 percent. “We are beginning to see the anticipated impacts of the Know Before You Owe changes that w