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In the first month after the implementation of the new TRID rule, the average time to close a loan increased by three days to 49 total days, according to the latest Origination Insight Report issued by Pleasanton, Calif.-based Ellie Mae. November’s lethargic loan closings are the longest recorded closing times since February 2013.
Ellie Mae determined that the average time to close conventional, FHA and VA loans last month all increased to 49, 49 and 50 days, respectively. Closing rates for all loans reached their highest point, 68 percent, since Ellie Mae began tracking data in August 2011, while the closing rate on purchase loans increased to 72 percent. Ellie Mae also reported that the average FICO score on all closed loans fell to 721, marking the sixth consecutive month of decline.
"We are beginning to see the anticipated impacts of the Know Before You Owe changes that went into effect in October," said Jonathan Corr, president and CEO of Ellie Mae. "Additionally, we've seen the percentage of refinances increase to 46 percent of all closed loans, most likely driven by a recent dip in rates over the last three months since the 2015 high point in August."