WASHINGTON–Credit scores among all borrowers declined slightly during November over one year earlier.
The credit score for all borrowers declined to 722 in November 2017 from 728 in November 2016, according to a report from Ellie Mae, which is a platform provider for mortgage lenders.
Elllie Mae also released data on Millennial borrowers through its Ellie Mae Millennial tracker, reporting it found the average FICO score for closed loans to Millennials declined to 723 in November 2017 from 725 in the year-ago period.
“With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market,” said Joe Tyrell, EVP of corporate strategy at Ellie Mae, in a released statement.
According to Ellie Mae, the Millennial Tracker data showed that while there was a slight decline in the overall average scores for closed loans to Millennials year-over-year, the trend was most could be seen most clearly in data for FHA and VA loans to this demographic group.
Among the findings:
- The average FICO score on a closed FHA refinance loans to Millennial borrower in November 2016 was 678, and had declined to 669 in November 2017.
- Scores on closed VA refinance loans decreased from 725 to 710 year-over-year.
- Conventional loans remained the most popular loan product for Millennial borrowers, with 66% of total closed loans with FHA accounting for 30% of closed loans for the second month in a row. Over the same period VA loans represented just 2% of all closed loans.
- The Ellie Made data show for all loans, the average time to close increased to 44 days up from 43 days in October. However, the average time to close FHA loans decreased to 43 days, from 46 in the month prior.
- The report found men continued to make up the majority of primary borrowers with women making up only 32% of closed loans. Among women who were listed as the primary borrower, 40% were identified as married, 59% as single and 1% as separated, compared to male primary borrowers, among which 58% were listed as married and 42% as single.