July 31, 2021

MP Now News

Mortgage News

Digital Lending Tools are Reducing Mortgage Timeframes

There was one there Significant reduction in mortgage processing times since the first of the year according to ICE Mortgage Technology. It is Origination Insight Report The time to take out a purchase mortgage, which averaged 57 days in January, decreased to 53 days in February and then to 51 days in March. Refinancing has improved similarly, falling from 59 days in January to 52 days in the months that followed. The deadline for completing all loans was also 51 days, 6 less than January.

“We’re seeing a compelling decrease in the time it takes to close a mortgage later in 2021,” said Joe Tyrrell, president of ICE Mortgage Technology. “Part of the reason is Lenders continue to use digital mortgage tools to improve their lending process and serve homebuyers more efficiently, for example eClose, resulting in a streamlined process that saves time and this shift is visible in the data. “

The percentage of refinancing fell from 68 percent of all closed loans in February to 63 percent in March, so that the proportion of purchase mortgages increased accordingly. They accounted for 36 percent of total closed-ended loans in March, compared to 32 percent in February.

“After months of near-record refinancing, it is clear that the pandemic has changed the way people see their homes and has led homeowners to refinance, often to gain access to equity,” Tyrrell said. “If we enter the summer months of home buying and continue to see higher than normal refinancing volumes as some homeowners commit to staying in their current homes, it means new buyers face an even more competitive buying market, that of a tight supply is driven. “

Eighty-three percent of all originations in March were conventional loans, 1 point less than the previous month, and FHA loans rose 1 point to 9 percent. VA loans were only 3 percent, compared with 5 percent in January and February.

The closing prices for all loans rose slightly over the course of the month from 76.4 percent in February to 77.9 percent in March. The final interest rates for refinancing improved in a month-on-month comparison from 76.3 percent to 78.0 percent. The completion rates for purchases rose from 77.1 to 78.1 percent. ICE’s closing courses are based on a review of a sample of applications submitted 90 days earlier, in this case December 2020.

The Origination Insight Report uses data from a sample of approximately 80 percent of all mortgage applications initiated on the company’s lending platform. According to ICE, the report is a strong proponent of the underwriting standards used by lenders across the country.