Mortgages take four days longer to close than before implementation of integrated disclosures, though a bigger share of applications are closing.
During the first month of 2016, conventional loans accounted for 65 percent of all loans closed, diminishing from 70 percent in January 2015.
Mortgages that are insured by the Federal Housing Administration made up 22 percent of originations, climbing from 15 percent a year earlier.
The share of loans guaranteed by the Department of Veterans Affairs slipped to 10 percent from 11 percent in the year-earlier period.
The metrics were outlined in the Origination Insight Report January 2016 from Ellie Mae Inc. The results reflect a two-thirds sampling of loan applications initiated on the Encompass origination platform.
The report indicated that time to close all loans was 50 days
in January 2016, a day longer than in the prior report.
Turnaround has slowed significantly from the first month of last year, when it took just 40 days to close a home loan.
“We continue to see the time to close lengthen month over month, now reaching 50 days, which is up four days since TRID went into effect,” Ellie Mae President and Chief Executive Officer Jonathan Corr said in an accompanying news release.
Refinance turn times were 48 days during the latest period, while purchase turnaround was 51 days.
It took 49 days to close a conventional mortgage, 51 days to complete an FHA loan and 53 days to fund a VA mortgage.
But while the loan process was elongated, the closing rate improved — to 68.4 percent in January 2016 from 67.3 percent in the final month of 2015 and 62.4 percent in the first month of 2015.
Refinances had a closing rate of 64.9 percent last month, and the rate was 72.2 percent on purchase financing.
The conventional closing rate was 70.2 percent, while it fell to 66.0 percent on FHA-insured mortgages and 63.4 percent on VA-guaranteed loans.
January 2016’s average FICO score was 719, loosening from 722 the prior month and 731 a year prior.
Conventional credit scores were 726 on loans to refinance an existing mortgage and 753 on loans to finance a home purchase.
FICO scores averaged 645 on FHA refinances and 687 on FHA purchases.
On VA-guaranteed mortgages, credit sores averaged 705 for refinancings and 704 on loans used to buy a home.
The average U.S. mortgage had a loan-to-value ratio of 79 percent, tighter than 80 percent in December and unchanged from January 2014.
LTV ratios averaged 69 percent on conventional refinances and 80 percent on conventional purchase mortgages.
FHA LTV ratios averaged 80 percent on refinance transactions and 96 percent on purchase transactions.
The LTV ratio averaged 88 percent on VA refinance mortgages and 98 percent on VA purchase mortgages.
Ellie reported average debt-to-income ratios at 25/39 percent, no different than in the last report but easing from 24/37 percent the same month in 2015.
The DTI ratio averaged 25/40 percent on conventional refinances and 23/35 percent on conventional purchase-money loans.
DTI ratios on FHA refinances were 29/46 percent, while they came in at 28/42 percent on loans to purchase homes.
VA DTI ratios averaged 24/40 percent for both refinances and purchase financing.
Last month’s refinance share was 47 percent, widening from 43 percent in December but thinner than 51 percent in January 2015.
Refinance share was 58 percent on conventional loans, 24 percent on FHA business and 31 percent on VA mortgages.
