(Ellie Mae) -- The Ellie Mae Origination Insight Report provides monthly data and insights from the closed-loan applications that flow through Ellie Mae's Encompass360® mortgage management software and Ellie Mae Network™. The characteristics of closed and denied loans presented in this report are averages. In 2011, the total volume of mortgages that ran through Ellie Mae’s Encompass360 mortgage management software was approximately two million loan applications, or 20% of all U.S. mortgage originations.
The Origination Insight Report mines its application data from a robust sampling of approximately 33% of all mortgage applications that were initiated on the Encompass origination platform. Given the size of this sample and Ellie Mae’s market share, the Company believes the Origination Insight Report is a strong proxy of the underwriting standards that are being employed by lenders across the country.
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Closing Rate: Percentage of loan applications begun in previous 90-day cycle that have closed.
Debt-to-Income Ratio (DTI): A personal finance measure that compares an individual's debt payments to the income he or she generates. Includes Front-End Ratio/Back-End Ratio.
Denied Applications: Loan applications denied as indicated by lender for Home Mortgage Disclosure Act (HMDA) reporting purposes. Loan applications not reported as denied or as originated (closed) may include active applications, applications withdrawn by consumer, or files closed for incompleteness.
Time to Close: Time from loan application to funding.
Refinance: Includes both no-cash-out and cash-out refinances.
FICO: A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend a loan. FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score. The Ellie Mae Origination Insight Report looks at the average middle score from a tri-merge credit report.
Loan-to-Value Ratio (LTV): A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage. It is calculated by dividing the mortgage amount by the appraised value of the property.