The percentage of closed purchase loans increased in September to 71 percent of total loans, according to the Origination Insight Report from Ellie Mae. Closed refinances represented 29 percent of total closed loans, returning to the July average.

In September, the average 30-year interest rate for all loans decreased for the first time in 2018 to 4.91 percent, down from the 2018 high of 4.92 percent in August. The percentage of Adjustable Rate Mortgages increased to 7.2 percent in September, up from 6.6 percent the month prior.

“We see refinances remain at a low percentage of aggregate closed loans and purchase inventory continues to be tight as we move into the fall,” said Jonathan Corr, president and CEO of Ellie Mae. “We did see the first reduction in interest rates this month and with that, the percentage of ARMs began to increase. However, we believe that the seasonal decline in home buying and continued affordability constraints will shape the purchase market.”

Other statistics of note in September included:

• Closing rates for all loans held steady at 71.1 percent for the second month, the highest percentage in 2018. Closing rates on purchase loans increased to 76.4 percent, up from 75.9 percent the month prior. Closing rates on refinances increased to 64.4 percent in September, up from 63.5 percent in August.
• The time to close all loans increased to 44 days in September, up from 43 days in August. Time to close a purchase loan held steady at 45 days, while time to close a refinance increased to 42 days in September, up from 38 the month prior.
• Overall FICO scores increased by 3 points to 727 in September. LTV held at 79 for the second month while DTI decreased to 25/39.

LoanScorecard’s automated underwriting technology will power Deephaven Mortgage’s launch of Identi-Fi AUS.

The lender’s launch of this technology furthers its mission to empower mortgage professionals serving borrowers who face challenges securing a traditional government-financed mortgage. As a leading originator of non-QM mortgage-backed securities, Deephaven aims to be the top provider of non-agency loans to the origination community, offering expanded prime, near-prime, non-prime, bank statement loan, investment property, and interest-only products.

In order to empower originators at the point of sale, Deephaven is introducing Identi-Fi AUS.

This Non-QM point-of-sale-pre-qualification tool leverages LoanScorecard’s Portfolio Underwriter technology Identi-Fi AUS will analyze the 1003 and credit report to instantly determine potential options across Deephaven’s non-agency loan programs.

This, in turn, enables originators to place loans that might otherwise not qualify. Originators can run Deephaven’s AUS findings on any loan file for a detailed breakdown of the qualification criteria applied along with documentation requirements.

“As a leader in the non-QM space, Deephaven embraces innovation that enables us to offer new products through technology that empowers originators for this underserved market,” said Mike Brenning, chief production officer for Deephaven. “LoanScorecard fits perfectly with this approach. We are excited about using their technology to empower originators to diversify into new markets, especially those doing non-QM production for the first time.”

Non-QM production has more than doubled this year and some loan originators are turning to the product as the conventional market contracts.

Envestnet-Yodlee has developed Envestnet-Yodlee Risk Insight for Pre-Qualification reports designed for lenders and lead generators who want more robust information to pre-qualify a borrower before engaging in full underwriting. Risk Insight infuses data into the lead qualification process, enabling lenders to target the right product to the right customer at the right time.

Lenders looking to generate organic growth must acquire new consumers outside of their existing customer base. Yet, marketing to new leads can be challenging due to the high cost and lack of data. Without knowing something about the individual, lenders often struggle to confirm a consumer's financial condition. Even with a full credit bureau report, it can be impossible to determine if consumers have the ability and intention to pay back a loan Risk Insight was created to fill this gap.

Risk Insight addresses this important early stage in the verification process by providing reports on whether a lead meets the basic criteria for a loan. Lenders can select up to 25 customized attributes, such as income, asset, and expense data, to arrive at a meets, or doesn't meet, decision for leads. By redirecting inappropriate targets early on, lenders save on unnecessary costs for traditional credit reports and authentication products required during the origination process.

"Risk Insight provides a highly cost-effective, simplified report to help lenders make more targeted offers and control risk at the lead level," said Mike Burger, vice president of product management at Envestnet-Yodlee.

CoreLogic has updated its residential and commercial storm surge and wind loss estimates for Hurricane Michael.

According to this new data analysis, the wind losses for residential and commercial properties in Florida are expected to be between $2 billion and $3 billion and the storm surge losses, including losses covered by National Flood Insurance Program , are expected to be an additional $0.5 billion to $1 billion. The analysis includes insured losses. Corelogic provides global property information, analytics and data-enabled solutions.

The post-landfall estimates below have been updated based on the Oct. 11, National Hurricane Center advisory of the storm. It was unlikely that inland flooding would be a major contributor to loss totals. This analysis includes residential homes and commercial properties, including contents and business interruption and does not include broader economic loss from the storm.

Below the table illustrates the loss to states due to the devastation of Hurricane Michael, most of which afficted Florida.

Hurricane Michael Combined Residential and Commercial Loss (Includes Wind,National Flood Insurance Program and Non-NFIP Storm Surge.)