It has been more than two years since it took this long to close a home loan. One factor in the slower turnaround is an improved closing rate.
Of all residential loans closed in June, 63.0 percent were conventional mortgages.
Another 3.6 percent were not backed by any government-controlled entity.
In the government mortgage sector, 23.7 percent of June 2015 production was insured by the Federal Housing Administration, and 10.0 percent was guaranteed by the Department of Veterans Affairs.
Ellie Mae Inc. reported the statistics in its Origination Insight Report for June 2015. Ellie, a Mortgage Daily advertiser, says its Encompass mortgage management solution handled 3.7 million applications last year.
It took 48 days to close a loan last month, two days longer than in May. Turnaround has deteriorated by a week compared to June 2014.
The last time it took this long to close a loan was in February 2013, when the the time to close was 50 days.
Turnaround last month was 48 days on conventional loans, 47 days on FHA-insured mortgages and 49 days on VA-guaranteed loans.
Of all loan applications started in the previous 90-day cycle, 64.2 percent closed in June. The closing rate was better than 64.0 percent in the previous report and the 60.7 percent in the year-earlier report.
“The improving closing rate is a continued sign that borrowers are being approved and following through with purchases,” Ellie Mae President and Chief Executive Officer Jonathan Corr said in an accompanying announcement.
On conventional mortgages, the closing rate was 64 percent, while it dropped to 58 percent on loans insured by FHA and 62 percent on mortgages guaranteed by VA.
The average FICO score on all loans closed during June was 727, easing from 730 in the prior month and 728 a year prior.
Conventional FICO scores averaged 732 on refinancing and 757 on purchase financing.
Average FHA FICOs were 677 on refinances and 689 on purchases.
On VA mortgages, credit scores averaged 710 on refinances and 709 on purchase-money loans.
Ellie reported average loan-to-value ratios at 81 percent for all loan types, no different than in May but tighter than 82 percent in June 2014.
Conventional LTV ratios averaged 70 percent on refinances and 80 percent on purchases.
On FHA business, the average LTV ratio was
82 percent on refinances and 95 percent on purchases.
LTV ratios averaged 88 percent on VA refinancings and 98 percent on VA purchase financing.
At 24/38 percent for June, the average debt-to-income ratio for all loan types was modestly eased from 24/37 percent a month and a year earlier.
Conventional refinances had 25/39 percent ratios, while it dropped to 22/34 percent on conventional purchase transactions.
FHA DTI ratios averaged 27/44 percent on refinances and 27/41 percent on purchase financing.
For all types of VA transactions, DTI ratios averaged 24/40 percent.
The share of overall production that was adjustable-rate mortgages widened to 4.9 percent from 4.7 percent in May but has thinned significantly from 7.2 percent the same month in 2014.
ARM share was 6.2 percent on conventional mortgages, 0.6 percent on FHA loans and
0.6 percent on VA mortgages.
Refinance share fell to 38 percent last month from 42 percent in the prior period. But refinance share has widened from the one-third share in place as of May 2014.
June 2015 refinance share was 48 percent on conventional loans, a fifth on FHA mortgages and more than a quarter on VA loans.
