Reblogged from Mortgage News Daily – Jann Swanson
It was only a small change, but a 1 percent decline in the average FICO scores for loans originated in September took that metric to its lowest level in at least four years. Ellie Mae’s Origination Insight Report for the month said the 723 score was the lowest since the company began tracking it in August 2011. The company also noted that the credit availability on refinances appears to have increased in Q3 of 2015 as the overall average FICO and debt-to-income (DTI) ratio have loosened materially from Q2 of 2015.
The share or originations that were for refinancing jumped from 37 percent in August to 42 percent, likely the company said driven by the recent lower interest rates. Conventional loans accounted for 64 percent of closed loans and FHA loans for 23 percent. Nine percent of loans were backed by the VA. All were within one point plus or minus of their previous month’s share.
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