|Post Subject: Average Fallout % from Loan Lock to Close|
|Reply Monitor | Report Abuse||A LendingRisk.com user wants to know .... What is the average fall out % from app (or lock) to close for an originator?
Posted: 10/03/2009 14:19:17
|Reply Monitor | Report Abuse||Fallout behavior varies based on the length of the rate lock, origination channel, purchase or refinance and interest rate movement during the lock period. 15 day locks experience dramatically lower fallout levels than 30 day locks. Wholesale channel originations have significantly higher levels of fallout than retail originations. Refinance loans fallout in higher percentages than purchase originations. Overall pullthrough for a mortgage pipeline typically is between 65% and 75%. In declining rate environmants, 65% is a realistic number, while 75% pullthrough is more likely to occur in stable to rising rate environments. Fallout costs companies money. Taking complete applications, explaining lock policies up front and maintaining disciplined relock policies are critical to consistently achieving 65% to 75% pullthrough levels. Historical fallout is used to predict future fallout.
Posted: 11/10/2010 03:30:02
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