Hsbc Bank Usa, Na

Arlington Heights, IL 60004

LEI: 1IE8VN30JCEQV1H4R804

Tax ID: 20-1177241

2019 Data | 2018 Data


Overview

Hsbc Bank Usa, Na is a mid-sized mortgage company specializing in Home Purchase and Refi loans. Hsbc Bank Usa, Na has a high proportion of conventional loans. They have a a low proportion of FHA loans. (This may mean they shy away from first time homebuyers.) Their top markets include New York, Los Angeles, San Jose, Nassau County, and Anaheim 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. Hsbc Bank Usa, Na is typically a medium-low fee lendor.


Originations

5,759

Origination Dollar Volume (All Markets)

$5,549,045,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 5,754 $5,547,610,000 $964,131
FHA 5 $1,435,000 $287,000

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 2,885 $2,579,715,000 $894,182
Home Improvement 338 $93,900,000 $277,811
Other 315 $123,765,000 $392,905
Refi 1,209 $1,681,565,000 $1,390,873
Cash Out Refi 1,012 $1,070,100,000 $1,057,411

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
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 1,387 $1,546,505,000 $1,115,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 572 $522,600,000 $913,636
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 457 $446,435,000 $976,882
NASSAU COUNTY-SUFFOLK COUNTY, NY 404 $272,060,000 $673,416
ANAHEIM-SANTA ANA-IRVINE, CA 250 $265,210,000 $1,060,840
RICHMOND, VA 1 $255,005,000 $255,005,000
MIAMI-MIAMI BEACH-KENDALL, FL 195 $207,615,000 $1,064,692
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA 211 $207,175,000 $981,872
OAKLAND-BERKELEY-LIVERMORE, CA 293 $193,595,000 $660,734
SEATTLE-BELLEVUE-KENT, WA 256 $168,550,000 $658,398
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 110 $161,470,000 $1,467,909
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 31 $114,795,000 $3,703,065
DALLAS-PLANO-IRVING, TX 25 $101,615,000 $4,064,600
BRIDGEPORT-STAMFORD-NORWALK, CT 79 $70,455,000 $891,835
COLORADO SPRINGS, CO 2 $69,570,000 $34,785,000
NEWARK, NJ-PA 131 $68,015,000 $519,198
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 26 $66,880,000 $2,572,308
CHICAGO-NAPERVILLE-EVANSTON, IL 23 $65,055,000 $2,828,478
DENVER-AURORA-LAKEWOOD, CO 11 $61,475,000 $5,588,636
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 70 $55,850,000 $797,857
AUSTIN-ROUND ROCK-GEORGETOWN, TX 15 $51,005,000 $3,400,333
Outside of Metro Areas 53 $46,605,000 $879,340
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 115 $37,255,000 $323,957
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 58 $31,540,000 $543,793
NEW BRUNSWICK-LAKEWOOD, NJ 68 $31,440,000 $462,353
MEMPHIS, TN-MS-AR 2 $31,360,000 $15,680,000
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 78 $30,810,000 $395,000
NAPLES-MARCO ISLAND, FL 8 $28,160,000 $3,520,000
FORT WORTH-ARLINGTON-GRAPEVINE, TX 4 $26,740,000 $6,685,000
SAN ANTONIO-NEW BRAUNFELS, TX 3 $24,075,000 $8,025,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 78 $23,260,000 $298,205
BOSTON, MA 18 $21,180,000 $1,176,667
ORLANDO-KISSIMMEE-SANFORD, FL 62 $16,030,000 $258,548
BUFFALO-CHEEKTOWAGA, NY 88 $15,550,000 $176,705
TAMPA-ST. PETERSBURG-CLEARWATER, FL 43 $12,515,000 $291,047
PHOENIX-MESA-CHANDLER, AZ 18 $11,470,000 $637,222
NORTH PORT-SARASOTA-BRADENTON, FL 18 $9,530,000 $529,444
SAN RAFAEL, CA 9 $9,375,000 $1,041,667
PHILADELPHIA, PA 30 $8,740,000 $291,333
SACRAMENTO-ROSEVILLE-FOLSOM, CA 22 $8,620,000 $391,818
CAMBRIDGE-NEWTON-FRAMINGHAM, MA 13 $8,175,000 $628,846
OXNARD-THOUSAND OAKS-VENTURA, CA 8 $6,680,000 $835,000
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 12 $6,640,000 $553,333
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 10 $6,100,000 $610,000
TRENTON-PRINCETON, NJ 8 $5,290,000 $661,250
RALEIGH-CARY, NC 12 $4,990,000 $415,833
SANTA CRUZ-WATSONVILLE, CA 6 $4,990,000 $831,667
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY 18 $4,600,000 $255,556
BREMERTON-SILVERDALE-PORT ORCHARD, WA 4 $4,370,000 $1,092,500
JACKSONVILLE, FL 21 $4,255,000 $202,619
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI 5 $4,005,000 $801,000
RENO, NV 5 $3,915,000 $783,000
BOULDER, CO 5 $3,685,000 $737,000
SANTA MARIA-SANTA BARBARA, CA 5 $3,655,000 $731,000
LAS VEGAS-HENDERSON-PARADISE, NV 16 $3,490,000 $218,125
CHARLESTON-NORTH CHARLESTON, SC 6 $3,480,000 $580,000
STOCKTON, CA 9 $3,305,000 $367,222
LAKE COUNTY-KENOSHA COUNTY, IL-WI 7 $2,665,000 $380,714
PORT ST. LUCIE, FL 9 $2,595,000 $288,333
URBAN HONOLULU, HI 4 $2,590,000 $647,500
SALINAS, CA 3 $2,565,000 $855,000
TACOMA-LAKEWOOD, WA 9 $2,565,000 $285,000
SANTA ROSA-PETALUMA, CA 4 $2,010,000 $502,500
WARREN-TROY-FARMINGTON HILLS, MI 6 $1,990,000 $331,667
SEBASTIAN-VERO BEACH, FL 5 $1,905,000 $381,000
HARTFORD-EAST HARTFORD-MIDDLETOWN, CT 3 $1,825,000 $608,333
CHARLOTTE-CONCORD-GASTONIA, NC-SC 7 $1,775,000 $253,571
BAKERSFIELD, CA 5 $1,495,000 $299,000
OCEAN CITY, NJ 4 $1,450,000 $362,500
LAKELAND-WINTER HAVEN, FL 8 $1,450,000 $181,250
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 3 $1,445,000 $481,667
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 9 $1,415,000 $157,222
GREENVILLE-ANDERSON, SC 5 $1,395,000 $279,000
PUNTA GORDA, FL 6 $1,360,000 $226,667
BALTIMORE-COLUMBIA-TOWSON, MD 5 $1,325,000 $265,000
KINGSTON, NY 2 $1,320,000 $660,000
KNOXVILLE, TN 3 $1,295,000 $431,667
PALM BAY-MELBOURNE-TITUSVILLE, FL 6 $1,290,000 $215,000
WILMINGTON, DE-MD-NJ 7 $1,285,000 $183,571
COLUMBUS, OH 3 $1,245,000 $415,000
PORTLAND-SOUTH PORTLAND, ME 2 $1,230,000 $615,000
SAVANNAH, GA 2 $1,130,000 $565,000
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ 2 $1,050,000 $525,000
SALISBURY, MD-DE 4 $940,000 $235,000
SALT LAKE CITY, UT 2 $930,000 $465,000
GRAND RAPIDS-KENTWOOD, MI 2 $880,000 $440,000
NEW HAVEN-MILFORD, CT 3 $845,000 $281,667
ST. CLOUD, MN 1 $845,000 $845,000
PROVIDENCE-WARWICK, RI-MA 4 $840,000 $210,000
CAPE CORAL-FORT MYERS, FL 6 $810,000 $135,000
TALLAHASSEE, FL 5 $785,000 $157,000
VISALIA, CA 3 $735,000 $245,000
ROCHESTER, NY 5 $695,000 $139,000
COLLEGE STATION-BRYAN, TX 1 $675,000 $675,000
MILWAUKEE-WAUKESHA, WI 1 $675,000 $675,000
INDIANAPOLIS-CARMEL-ANDERSON, IN 6 $670,000 $111,667
PANAMA CITY, FL 4 $670,000 $167,500
ANN ARBOR, MI 2 $650,000 $325,000
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 2 $620,000 $310,000
DURHAM-CHAPEL HILL, NC 2 $610,000 $305,000
CLEVELAND-ELYRIA, OH 4 $510,000 $127,500
BOISE CITY, ID 1 $505,000 $505,000
CAMDEN, NJ 3 $485,000 $161,667
NAPA, CA 1 $485,000 $485,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 1 $445,000 $445,000
PENSACOLA-FERRY PASS-BRENT, FL 3 $435,000 $145,000
ST. LOUIS, MO-IL 2 $430,000 $215,000
FRESNO, CA 2 $430,000 $215,000
PITTSFIELD, MA 1 $415,000 $415,000
STATE COLLEGE, PA 1 $405,000 $405,000
LAKE HAVASU CITY-KINGMAN, AZ 2 $400,000 $200,000
BEND, OR 1 $395,000 $395,000
OLYMPIA-LACEY-TUMWATER, WA 3 $385,000 $128,333
KENNEWICK-RICHLAND, WA 1 $385,000 $385,000
GAINESVILLE, FL 2 $380,000 $190,000
ALBANY-SCHENECTADY-TROY, NY 2 $380,000 $190,000
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 2 $380,000 $190,000
GLENS FALLS, NY 1 $375,000 $375,000
CALIFORNIA-LEXINGTON PARK, MD 1 $355,000 $355,000
FLAGSTAFF, AZ 1 $355,000 $355,000
SAN LUIS OBISPO-PASO ROBLES, CA 1 $335,000 $335,000
EAST STROUDSBURG, PA 2 $330,000 $165,000
CHARLOTTESVILLE, VA 1 $315,000 $315,000
WATERTOWN-FORT DRUM, NY 1 $305,000 $305,000
WILMINGTON, NC 2 $300,000 $150,000
DOVER, DE 1 $295,000 $295,000
MOBILE, AL 7 $295,000 $42,143
VALLEJO, CA 1 $285,000 $285,000
LOUISVILLE/JEFFERSON COUNTY, KY-IN 1 $265,000 $265,000
FAYETTEVILLE-SPRINGDALE-ROGERS, AR 1 $255,000 $255,000
MIDLAND, TX 1 $255,000 $255,000
TULSA, OK 1 $245,000 $245,000
SPOKANE-SPOKANE VALLEY, WA 1 $245,000 $245,000
KANSAS CITY, MO-KS 2 $230,000 $115,000
PITTSBURGH, PA 3 $225,000 $75,000
ELGIN, IL 1 $225,000 $225,000
APPLETON, WI 1 $215,000 $215,000
COLUMBUS, IN 1 $195,000 $195,000
EUGENE-SPRINGFIELD, OR 1 $175,000 $175,000
LAFAYETTE-WEST LAFAYETTE, IN 1 $175,000 $175,000
KILLEEN-TEMPLE, TX 1 $175,000 $175,000
SCRANTON--WILKES-BARRE, PA 3 $165,000 $55,000
CORVALLIS, OR 1 $145,000 $145,000
HUNTSVILLE, AL 1 $135,000 $135,000
REDDING, CA 1 $135,000 $135,000
ITHACA, NY 1 $135,000 $135,000
ATLANTIC CITY-HAMMONTON, NJ 1 $125,000 $125,000
DAYTON-KETTERING, OH 1 $115,000 $115,000
HOMOSASSA SPRINGS, FL 1 $105,000 $105,000
HILTON HEAD ISLAND-BLUFFTON, SC 1 $105,000 $105,000
CAPE GIRARDEAU, MO-IL 1 $95,000 $95,000
BIRMINGHAM-HOOVER, AL 1 $95,000 $95,000
TUCSON, AZ 1 $75,000 $75,000
BROWNSVILLE-HARLINGEN, TX 1 $75,000 $75,000
FAYETTEVILLE, NC 1 $75,000 $75,000
OCALA, FL 1 $75,000 $75,000
OKLAHOMA CITY, OK 1 $75,000 $75,000
FLINT, MI 1 $75,000 $75,000
COLUMBUS, GA-AL 1 $65,000 $65,000
DETROIT-DEARBORN-LIVONIA, MI 1 $55,000 $55,000
ASHEVILLE, NC 1 $45,000 $45,000
CINCINNATI, OH-KY-IN 1 $45,000 $45,000

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% 41 $50,245,000 $1,225,488
2.5-3% 790 $828,040,000 $1,048,152
3-4% 3,640 $2,944,080,000 $808,813
4-5% 982 $1,437,560,000 $1,463,910
5-6% 199 $273,805,000 $1,375,905
6-7% 76 $12,790,000 $168,289
7-8% 24 $2,280,000 $95,000
Over 8% 7 $245,000 $35,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 329 $21,415,000 $65,091
$100k-200k 723 $103,285,000 $142,856
$200k-400k 1,364 $401,140,000 $294,091
$400k-600k 1,192 $586,950,000 $492,408
$600k-1000k 1,129 $868,215,000 $769,012
$Over $1MM 1,022 $3,568,040,000 $3,491,233

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% 725 $528,525,000 $729,000
40-60% 1,042 $1,493,120,000 $1,432,937
60-80% 2,629 $2,884,215,000 $1,097,077
80-100% 886 $563,800,000 $636,343
Over 100% 1 $245,000 $245,000
Under 20% 476 $79,140,000 $166,261

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 991 $378,625,000 $382,064
$150k-250k 1,482 $796,720,000 $537,598
$50k-75k 356 $75,590,000 $212,331
$50k-or less 133 $18,985,000 $142,744
$75k-100k 436 $120,410,000 $276,170
$Over $250k 1,951 $2,056,145,000 $1,053,893

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
Not applicable 53 $1,947,055,000 $36,736,887
Not provided 2,073 $1,404,125,000 $677,340
Asian 1,654 $1,162,230,000 $702,678
White 1,811 $973,975,000 $537,811
Black 124 $40,160,000 $323,871
Chinese 12 $7,970,000 $664,167
Asian Indian 8 $5,290,000 $661,250
American Indian 7 $2,125,000 $303,571
Native Hawaiian 7 $1,745,000 $249,286
Other Asian 4 $1,670,000 $417,500
Other Pacific Islander 2 $890,000 $445,000
Guamanian 1 $745,000 $745,000
Korean 1 $505,000 $505,000
Japanese 1 $335,000 $335,000
1 $225,000 $225,000

Approval Rates

Total approvals of all applications
93.18%

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
54.31%

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 5,759 $5,549,045,000 $963,543

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 58 $17,160,000 $295,862
$1k-2k 3,731 $2,726,355,000 $730,730
$2k-3k 228 $112,150,000 $491,886
$3k-4k 129 $96,575,000 $748,643
$5k+ 69 $63,625,000 $922,101

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:Site-Built 26 $1,737,830,000 $66,839,615
Single Family (1-4 Units):Site-Built 5,733 $3,811,215,000 $664,785