Thirty eight percent of millennial home loans closed in April were FHA loans, according to the Ellie Mae Millennial Tracker™, a new interactive online tool on millennial loan trends in the United States. April data from the Millennial Tracker showed that the top Metropolitan Statistical Areas (MSAs) by percentage of millennial loans closed included Jefferson City, MO, Pottsville, PA, Decatur, IL, and Dickinson, ND. These MSAs all saw 50 percent or more of closed loans falling within the millennial category. Ellie Mae® (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry.

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 66 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.

April data from the Millennial Tracker showed that women were listed as the primary borrower on 31 percent of closed loans, holding steady from March. The average primary FICO score for female loan applicants was 722, down from 724 in March and the average age was 29.0, holding steady from the prior month. By comparison, men were listed as the primary borrower on 66 percent of closed loans in April and had an average age of 29.3 and an average FICO score of 724, down from 727 in March.

Conventional loans represented 60 percent of total millennial closed loans in April and took an average of 43 days to close, holding steady from the March data. The average FICO score for all closed millennial loans was 721.

“As expected, we are seeing a significantly higher number of millennials leveraging FHA loans compared to other populations,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “While our Origination Insight Report data, which tracks borrowers of every age, shows that 23 percent of closed loans were FHA loans, the Millennial Tracker shows that 38 percent of closed loans are FHA loans. Additionally, while the average FICO on all closed millennial loans was 721, the average primary FICO for FHA loans was 690.”

MILLENNIAL TRACKER HIGHLIGHTS FOR APRIL 2016

 
Loan Type    

Percentage of Loan Type

     Average Primary FICO     Average Days to Close
Conventional     60%     748     43
FHA     38%     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.