Homestreet Bank

Seattle, WA 98101-2326

LEI: 01KWVG908KE7RKPTNP46

Tax ID: 91-1299114

2019 Data | 2018 Data


Overview

Homestreet Bank is a small mortgage company specializing in Home Purchase and Refi loans. Homestreet Bank has a high proportion of conventional loans. They have an average proportion of FHA loans. They have a low ratio of USDA loans. Their top markets include Seattle, Los Angeles, Portland, Tacoma, and Spokane among others. They have an above average approval rate for mortages when compared nationally -- and they have a below average pick rate when compared to the same sample of other lendors. Homestreet Bank is typically a medium-low fee lendor.


Originations

10,510

Origination Dollar Volume (All Markets)

$4,703,160,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 8,866 $4,167,570,000 $470,062
FHA 936 $283,660,000 $303,056
VA 651 $237,545,000 $364,892
USDA 57 $14,385,000 $252,368

Conventional loans are assumed to be 20% downpayment and either fixed/adjustable rate. FHA loans start at 3.5% downpayment and are targeted towards first time homebuyers who will be owner-occupants. USDA loans target agrarian uses such as farms. VA loans are available to members of the military. FHA, USDA and VA loans are typically subsidized by the government so as to have more favorable terms for the borrower.

Loan Reason

Loan Reason Originations Total Value Average Loan
Home Purchase 6,041 $2,684,955,000 $444,455
Home Improvement 588 $87,840,000 $149,388
Other 989 $132,195,000 $133,665
Refi 1,528 $1,378,450,000 $902,127
Cash Out Refi 1,364 $419,720,000 $307,713

Home purchase and refinance loans are typically offered by even the most prudent banks. Cash out refi loans typically carry higher fees-- they allow homeowners to get loans against the equity (appreciated value) of their home, but can be used irresponsibly. Lendors with a high ratio of cash out refi loans may be exposed in the event of an economic downturn, and may be more aggressive with their fee schedules.

Top Markets

Market Originations Total Value Average Loan
SEATTLE-BELLEVUE-KENT, WA 2,845 $1,359,415,000 $477,826
LOS ANGELES-LONG BEACH-GLENDALE, CA 470 $653,170,000 $1,389,723
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 1,690 $588,920,000 $348,473
TACOMA-LAKEWOOD, WA 702 $240,430,000 $342,493
Outside of Metro Areas 776 $197,330,000 $254,291
SPOKANE-SPOKANE VALLEY, WA 473 $165,005,000 $348,848
KENNEWICK-RICHLAND, WA 377 $101,665,000 $269,668
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 279 $100,585,000 $360,520
SACRAMENTO-ROSEVILLE-FOLSOM, CA 241 $96,775,000 $401,556
BOISE CITY, ID 217 $94,155,000 $433,894
SALEM, OR 160 $93,360,000 $583,500
URBAN HONOLULU, HI 208 $86,770,000 $417,163
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 154 $80,210,000 $520,844
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA 24 $62,570,000 $2,607,083
BREMERTON-SILVERDALE-PORT ORCHARD, WA 153 $57,895,000 $378,399
ANAHEIM-SANTA ANA-IRVINE, CA 65 $52,695,000 $810,692
OAKLAND-BERKELEY-LIVERMORE, CA 49 $46,185,000 $942,551
NAPA, CA 114 $45,080,000 $395,439
OLYMPIA-LACEY-TUMWATER, WA 146 $41,680,000 $285,479
KAHULUI-WAILUKU-LAHAINA, HI 97 $40,785,000 $420,464
OXNARD-THOUSAND OAKS-VENTURA, CA 75 $35,045,000 $467,267
PHOENIX-MESA-CHANDLER, AZ 60 $31,850,000 $530,833
YAKIMA, WA 136 $31,720,000 $233,235
MOUNT VERNON-ANACORTES, WA 122 $31,160,000 $255,410
COEUR D'ALENE, ID 67 $27,645,000 $412,612
FRESNO, CA 13 $27,145,000 $2,088,077
VALLEJO, CA 50 $24,030,000 $480,600
CHICO, CA 102 $23,000,000 $225,490
LONGVIEW, WA 76 $22,990,000 $302,500
BEND, OR 72 $22,790,000 $316,528
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 14 $22,090,000 $1,577,857
DENVER-AURORA-LAKEWOOD, CO 7 $20,545,000 $2,935,000
EUGENE-SPRINGFIELD, OR 84 $19,440,000 $231,429
BELLINGHAM, WA 49 $14,245,000 $290,714
AUSTIN-ROUND ROCK-GEORGETOWN, TX 3 $12,115,000 $4,038,333
SANTA ROSA-PETALUMA, CA 24 $11,440,000 $476,667
WENATCHEE, WA 33 $10,465,000 $317,121
LEWISTON, ID-WA 56 $10,290,000 $183,750
IDAHO FALLS, ID 2 $8,830,000 $4,415,000
BAKERSFIELD, CA 32 $8,290,000 $259,063
SAN LUIS OBISPO-PASO ROBLES, CA 8 $7,970,000 $996,250
SANTA MARIA-SANTA BARBARA, CA 14 $7,530,000 $537,857
YUBA CITY, CA 20 $6,850,000 $342,500
MODESTO, CA 7 $6,435,000 $919,286
CORVALLIS, OR 9 $6,255,000 $695,000
STOCKTON, CA 18 $6,200,000 $344,444
TUCSON, AZ 6 $4,960,000 $826,667
LAS VEGAS-HENDERSON-PARADISE, NV 16 $4,710,000 $294,375
MADERA, CA 5 $3,715,000 $743,000
SALT LAKE CITY, UT 4 $3,650,000 $912,500
WALLA WALLA, WA 14 $3,580,000 $255,714
ALBANY-LEBANON, OR 15 $3,575,000 $238,333
RENO, NV 7 $2,945,000 $420,714
VISALIA, CA 3 $1,945,000 $648,333
SAN RAFAEL, CA 5 $1,735,000 $347,000
MEDFORD, OR 8 $1,720,000 $215,000
SALINAS, CA 4 $1,720,000 $430,000
LAKE HAVASU CITY-KINGMAN, AZ 7 $1,325,000 $189,286
ANCHORAGE, AK 3 $1,165,000 $388,333
FORT COLLINS, CO 2 $860,000 $430,000
COLORADO SPRINGS, CO 2 $750,000 $375,000
OGDEN-CLEARFIELD, UT 3 $695,000 $231,667
BOULDER, CO 1 $625,000 $625,000
ST. GEORGE, UT 3 $495,000 $165,000
REDDING, CA 2 $410,000 $205,000
TWIN FALLS, ID 1 $275,000 $275,000
YUMA, AZ 1 $265,000 $265,000
EL CENTRO, CA 1 $255,000 $255,000
PRESCOTT VALLEY-PRESCOTT, AZ 1 $205,000 $205,000
POCATELLO, ID 1 $195,000 $195,000
MERCED, CA 1 $185,000 $185,000
SANTA CRUZ-WATSONVILLE, CA 1 $155,000 $155,000

Lendors vary in competitiveness at the per market level-- meaning they may have better terms, deals or promotions based on the mortgaged property's location.

Interest Rate & Spreads

Loan Rate Originations Total Value Average Loan
<2.5% 1 $355,000 $355,000
2.5-3% 34 $9,020,000 $265,294
3-4% 2,362 $1,490,190,000 $630,902
4-5% 5,300 $2,653,680,000 $500,694
5-6% 1,235 $351,805,000 $284,862
6-7% 868 $138,150,000 $159,159
7-8% 523 $50,595,000 $96,740
Over 8% 187 $9,365,000 $50,080

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 996 $57,910,000 $58,143
$100k-200k 1,661 $248,835,000 $149,810
$200k-400k 4,534 $1,325,380,000 $292,320
$400k-600k 1,981 $952,605,000 $480,871
$600k-1000k 945 $674,155,000 $713,392
$Over $1MM 393 $1,444,275,000 $3,675,000

Different banks have different objectives. Some banks focus solely on high net worth individuals. Others focus on FHA loans for lower income applicants. Knowing what a bank specializes in allows better optimization given the applicant's financial situation.

LTV Distribution

Loan to Value Originations Total Value Average Loan
20-40% 918 $243,280,000 $265,011
40-60% 1,061 $590,725,000 $556,762
60-80% 3,040 $2,099,270,000 $690,549
80-100% 4,156 $1,587,780,000 $382,045
Over 100% 135 $51,085,000 $378,407
Under 20% 1,125 $100,225,000 $89,089

LTV, or loan-to-value, is the amount loaned relative to a home's value. Lower LTV lending implies a larger downpayment-- reducing risk to the lendor. FHA loans will nearly always have a higher LTV due to the lower downpayment requirements. Higher LTVs may also mean a bank is charging higher fees or interest rates to compensate for their risk exposure.

Applicant Income

Applicant Income Originations Total Value Average Loan
$100k-150k 2,565 $890,575,000 $347,203
$150k-250k 2,038 $854,760,000 $419,411
$50k-75k 1,909 $448,105,000 $234,733
$50k-or less 784 $130,380,000 $166,301
$75k-100k 1,853 $516,475,000 $278,724
$Over $250k 940 $563,110,000 $599,053

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 6,689 $2,150,345,000 $321,475
Not applicable 228 $1,210,070,000 $5,307,325
Not provided 2,364 $906,430,000 $383,431
Asian 799 $293,835,000 $367,753
Black 198 $62,260,000 $314,444
Native Hawaiian 109 $36,715,000 $336,835
American Indian 60 $17,150,000 $285,833
Asian Indian 18 $11,120,000 $617,778
Filipino 13 $5,125,000 $394,231
Other Asian 10 $3,280,000 $328,000
Other Pacific Islander 7 $2,065,000 $295,000
Native Hawiian 6 $1,780,000 $296,667
Chinese 4 $1,230,000 $307,500
Vietnamese 3 $805,000 $268,333
Japanese 1 $595,000 $595,000
Korean 1 $355,000 $355,000

Approval Rates

Total approvals of all applications
95.16%

A high approval rate means banks are more selective in who they market to or that they are loosey-goosey with who they lend to. Low approval rates may mean a lendor is more stringent in their lending standards.

Pick Rate

Approvals leading to origination
69.53%

A bank's pick rate is how often they are chosen by an applicant once approved. A high pick rate typically means the bank has some sort of advantage-- either the best terms (rates/fees), fastest closing time or even the best customer service. Banks with <75% pick rate may need further investigation as to why they are not more competitive.

Points and Fees

Points Originations Total Value Average Loan
NA 10,510 $4,703,160,000 $447,494

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 418 $128,740,000 $307,990
$1k-2k 4,088 $1,637,020,000 $400,445
$2k-3k 1,126 $370,060,000 $328,650
$3k-4k 1,233 $455,635,000 $369,534
$5k+ 771 $409,995,000 $531,770

Banks make money on their float/interest spread (fees charged to borrowers vs fees they pay for their capital), for servicing loans, as well as charging origination fees when a loan is disbursed. Modern low-cost efficient lendors can have fees totaling less than $500 for many mortgages-- as low as $250 in some cases. Average lendors will be in the $1k-2k range and high cost lendors will be even more. The costs incurred by the bank will be similar no matter the loan amount, so this is to be viewed as a profit center for most banks.

Occupancy Type Mix

Dwelling Type Originations Total Value Average Loan
Multifamily:Manufactured 4 $9,120,000 $2,280,000
Multifamily:Site-Built 231 $1,220,215,000 $5,282,316
Single Family (1-4 Units):Manufactured 367 $79,245,000 $215,926
Single Family (1-4 Units):Site-Built 9,908 $3,394,580,000 $342,610