Closing Times Sink to Pre-TRID Days

The average time to close a loan is now shorter than it's been since 2015, according to the latest Origination Insight Report from Ellie Mae.

The survey found that the average time now sits at the lowest level in two years, coming in at 43 days in March, down from 46 days in February. 

For refinances, the time to close dipped to 43 days from 47 days in February. The time to close a purchase dropped to 43 days, down from 45 days in February.

“The purchase market continued to heat up in March, representing 63 percent of total closed loans,” said Jonathan Corr, president and CEO of Ellie Mae. “We also saw the time to close shrink to the shortest duration since February of 2015 at 43 days across all closed loans, purchases and refinances, as Ellie Mae lenders automate more mortgage processes to improve efficiency, quality and compliance.”

In addition, home loans for purchases increased to 63 percent in March, up from 57 percent the month prior.

The Origination Insight Report uses data from a sampling of approximately 80 percent of all mortgage applications that were initiated on Ellie Mae’s loan origination system, Encompass.