PLEASANTON, Calif.--(BUSINESS WIRE)--FHA loans continued to be popular amongst millennials according to the Ellie Mae Millennial Tracker™, a new interactive online tool on millennial loan trends in the United States. May data from the Millennial Tracker showed 37 percent of millennial loans closed in May were FHA loans, staying steady from April. This is significantly more than the overarching Origination Insight Report data for May that showed only 23 percent of loans were FHA loans. Ellie Mae® (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry.
The top Metropolitan Statistical Areas (MSAs) by percentage of millennial loans closed included Columbia, Mo., Jonesboro, Ark. and Sioux Falls, S.D. These MSAs all saw 55 percent closed loans falling within the millennial category. When sorted by population, top MSAs included Minneapolis/St. Paul/Bloomington, Minn./Wis., St. Louis, Mo. and Baltimore/Columbia/Towson, Md.
An online tool, which will be refreshed with new data the first week of each month, the Ellie Mae Millennial Tracker provides access to up-to-date demographic data about this new generation of homebuyers. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type. The Ellie Mae Millennial Tracker mines data from a robust sampling of approximately 75 percent of all closed mortgages dating back to 2014 that were initiated on Ellie Mae’s Encompass® all-in-one mortgage management solution. Given the size of this sample and Ellie Mae’s market share, it is a strong proxy of millennial mortgage indicators across the country.
May data from the Millennial Tracker showed that women were listed as the primary borrower on 32 percent of closed loans, holding steady from March. When women were listed as the primary borrower, 38 percent were married and 61 percent were single, a striking difference from men. When men were listed as the primary borrower, 58 percent were married and 41 percent were single. The average primary FICO score for female loan applicants was 723, down from 724 in March and the average age was 29.0, holding steady for the third consecutive month. The average FICO score for men remained steady at 724 and the average age was 29.2.
Conventional loans represented 60 percent of total millennial closed loans in May, remaining steady from April. Loans took an average of 44 days to close, up from 43 days in April. The average FICO score for all closed millennial loans was 722, up slightly from 721 in April.
“We are seeing a significant difference in marital status between male primary borrowers and female primary borrowers,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “When women are listed as the primary borrower on a millennial loan, 61 percent of them are single. Conversely, when men are listed as the primary borrower on a millennial loan, only 41 percent of them are single.”
MILLENNIAL TRACKER HIGHLIGHTS FOR MAY 2016
| Loan Type |
Percentage of Loan Type |
Average Primary FICO | Average Days to Close | ||||||
| Conventional | 60% | 747 |
43 |
||||||
| FHA | 37% | 690 | 43 | ||||||
The Ellie Mae Millennial Tracker is a supplement to Ellie Mae’s monthly Origination Insight Report, which focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier. The Origination Insight Report will continue to be released on the third Wednesday of each month.
For more information on the Ellie Mae Millennial Tracker, visit http://elliemae.com/millennial-tracker
About the Ellie Mae Millennial Tracker
The Ellie Mae Millennial Tracker focuses on millennial mortgage applications during specific time periods. Ellie Mae defines millennials as applicants born between the years 1980 and 1999. New data is updated on the first Monday of every month for two months prior.
The Millennial Tracker is a subset of our Origination Insight Report, which details aggregated, anonymized data pulled from Ellie Mae’s Encompass origination platform. Additional information regarding the Origination Insight Report can be found at http://elliemae.com/resources/origination-insight-reports. News organizations have the right to reuse this data, provided that Ellie Mae, Inc., is credited as the source.
About Ellie Mae
Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s Encompass® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit EllieMae.com or call (877) 355-4362 to learn more.
© 2016 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®, Millennial Tracker™, Mortgage Returns®, Prospect Manager, Total Quality Loan™, True CRM®, TQL™ and the Ellie Mae logo are trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.
