Are post-TRID closing times finally settling down?

by Ryan Smith26 Sep 2016
The average time to close loans seems to have leveled off at 46 days, according to the latest data from Ellie Mae.

According to the company’s latest Origination Insight Report, the average time to close all loans held steady for the third straight month. That comes after months of upswings and downswings in the wake of TRID implementation. In January, average loan closing times were as high as 50 days, according to HousingWire. In March, the average time hit a 12-month low of 44 days. But by June, average closing time had settled at 46 days, and there it has remained since, prompting hopes that post-TRID volatility has finally settled down.

The average time to close a purchase loan held steady at 46 days, while the time to close a refinance dropped to 46 days in August from an average July time of 48 days. The average time to close an FHA purchase loan held steady at 47 days, while the time to close an FHA refinance remained at 49 days.

Meanwhile, closing rates were up. Closing rates for all loans hit 72.3% in August, according to Ellie Mae. That’s up from 71.6% in July. Closing rates for refinances rose to 67.1% last month from July’s average of 66.6%. Purchase closing rates were 76.4% in August, up from 75.7% in July.

“Refinances continued their upswing in August, representing 43% of all closed loans,” said Jonathan Corr, president and CEO of Ellie Mae. “Average FICO scores were also on the rise, climbing back to 731, which is the highest average we’ve seen since March of 2015, and tied to the rising percentage of conventional loans versus FHA loans. the 30-year note rate also fell to a historic low of 3.770, the lowest we’ve seen since May of 2013.”


  • by Perfparjer | 9/26/2016 1:40:33 PM

    The problem with touting average closing times of 46 days is that to get that average you need to factor into the equation closing times in excess of 70 days. How many contracts will fall apart with that long of a closing scenario. It is too soon to start a party in my opinion. Closing averages need to be 30 days give or take a couple. TRID rules/regulations have merely settled into formidible, rather than just atrocious.


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