Homestar Financial Corporation

GAINESVILLE, GA 30501

LEI: 5493000BR75YQF0VQC27

Tax ID: 74-3038404

2019 Data | 2018 Data


Overview

Homestar Financial Corporation is a small mortgage company specializing in Home Purchase loans. Homestar Financial Corporation has a high proportion of conventional loans. They have a a high proportion of FHA loans. Their top markets include Atlanta, Gainesville, Jacksonville, Greenville, and Columbus 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. Homestar Financial Corporation is typically a low fee medium-low fee lendor.


Originations

9,988

Origination Dollar Volume (All Markets)

$1,763,590,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 4,462 $775,970,000 $173,906
FHA 4,041 $704,805,000 $174,414
VA 760 $175,640,000 $231,105
USDA 725 $107,175,000 $147,828

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 9,051 $1,585,955,000 $175,224
Home Improvement 50 $7,370,000 $147,400
Refi 384 $82,130,000 $213,880
Cash Out Refi 503 $88,135,000 $175,219

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
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 5,376 $973,470,000 $181,077
Outside of Metro Areas 2,098 $334,010,000 $159,204
GAINESVILLE, GA 570 $110,440,000 $193,754
JACKSONVILLE, FL 156 $35,640,000 $228,462
GREENVILLE-ANDERSON, SC 181 $30,585,000 $168,978
COLUMBUS, GA-AL 112 $26,630,000 $237,768
ROME, GA 210 $26,450,000 $125,952
CHARLOTTE-CONCORD-GASTONIA, NC-SC 149 $25,635,000 $172,047
WARNER ROBINS, GA 134 $25,520,000 $190,448
ATHENS-CLARKE COUNTY, GA 138 $22,950,000 $166,304
BRUNSWICK, GA 86 $14,480,000 $168,372
SAVANNAH, GA 86 $13,370,000 $155,465
ST. LOUIS, MO-IL 87 $12,065,000 $138,678
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 61 $11,995,000 $196,639
AUGUSTA-RICHMOND COUNTY, GA-SC 68 $11,540,000 $169,706
AUBURN-OPELIKA, AL 34 $7,570,000 $222,647
KNOXVILLE, TN 26 $6,960,000 $267,692
DALTON, GA 44 $5,990,000 $136,136
MACON-BIBB COUNTY, GA 40 $5,040,000 $126,000
CHICAGO-NAPERVILLE-EVANSTON, IL 20 $5,030,000 $251,500
PANAMA CITY, FL 29 $4,885,000 $168,448
OCALA, FL 25 $3,745,000 $149,800
ALBANY, GA 18 $3,230,000 $179,444
SPARTANBURG, SC 18 $3,070,000 $170,556
PENSACOLA-FERRY PASS-BRENT, FL 9 $2,565,000 $285,000
DAPHNE-FAIRHOPE-FOLEY, AL 9 $2,515,000 $279,444
VALDOSTA, GA 18 $2,390,000 $132,778
BIRMINGHAM-HOOVER, AL 13 $2,385,000 $183,462
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 10 $2,380,000 $238,000
CHATTANOOGA, TN-GA 15 $2,335,000 $155,667
HICKORY-LENOIR-MORGANTON, NC 12 $2,330,000 $194,167
ORLANDO-KISSIMMEE-SANFORD, FL 7 $1,735,000 $247,857
HINESVILLE, GA 9 $1,725,000 $191,667
CAPE CORAL-FORT MYERS, FL 7 $1,495,000 $213,571
COLUMBIA, SC 9 $1,395,000 $155,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 6 $1,350,000 $225,000
CHARLESTON-NORTH CHARLESTON, SC 5 $1,245,000 $249,000
ASHEVILLE, NC 5 $1,225,000 $245,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 5 $1,155,000 $231,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 5 $975,000 $195,000
HUNTSVILLE, AL 3 $975,000 $325,000
LAKE COUNTY-KENOSHA COUNTY, IL-WI 5 $965,000 $193,000
ANNISTON-OXFORD, AL 8 $940,000 $117,500
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 4 $830,000 $207,500
HILTON HEAD ISLAND-BLUFFTON, SC 3 $825,000 $275,000
WINSTON-SALEM, NC 5 $765,000 $153,000
FAYETTEVILLE-SPRINGDALE-ROGERS, AR 2 $660,000 $330,000
MOBILE, AL 2 $640,000 $320,000
CLEVELAND, TN 5 $575,000 $115,000
RALEIGH-CARY, NC 3 $545,000 $181,667
PORT ST. LUCIE, FL 2 $400,000 $200,000
GADSDEN, AL 4 $400,000 $100,000
FAYETTEVILLE, NC 3 $395,000 $131,667
COLORADO SPRINGS, CO 1 $395,000 $395,000
MEMPHIS, TN-MS-AR 2 $390,000 $195,000
ELGIN, IL 2 $360,000 $180,000
NAPLES-MARCO ISLAND, FL 1 $325,000 $325,000
GREELEY, CO 1 $315,000 $315,000
LAKELAND-WINTER HAVEN, FL 1 $315,000 $315,000
NEW BERN, NC 2 $300,000 $150,000
HOMOSASSA SPRINGS, FL 3 $295,000 $98,333
FLORENCE, SC 1 $265,000 $265,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 2 $260,000 $130,000
PUNTA GORDA, FL 1 $245,000 $245,000
HATTIESBURG, MS 1 $245,000 $245,000
DURHAM-CHAPEL HILL, NC 1 $225,000 $225,000
NORTH PORT-SARASOTA-BRADENTON, FL 1 $205,000 $205,000
SUMTER, SC 1 $185,000 $185,000
JACKSONVILLE, NC 1 $185,000 $185,000
CLARKSVILLE, TN-KY 1 $145,000 $145,000
GAINESVILLE, FL 1 $145,000 $145,000
KANSAS CITY, MO-KS 1 $115,000 $115,000
JACKSON, TN 1 $85,000 $85,000
BISMARCK, ND 1 $75,000 $75,000
OKLAHOMA CITY, OK 1 $65,000 $65,000
PINE BLUFF, AR 1 $35,000 $35,000

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% 446 $5,520,000 $12,377
2.5-3% 25 $7,105,000 $284,200
3-4% 2,599 $537,305,000 $206,735
4-5% 5,228 $953,130,000 $182,313
5-6% 1,653 $257,385,000 $155,708
6-7% 4 $730,000 $182,500
7-8% 28 $1,390,000 $49,643
Over 8% 4 $1,010,000 $252,500

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,510 $81,170,000 $53,755
$100k-200k 5,222 $795,550,000 $152,346
$200k-400k 3,072 $802,370,000 $261,188
$400k-600k 183 $83,825,000 $458,060
$600k-1000k 1 $675,000 $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% 85 $8,675,000 $102,059
40-60% 261 $38,635,000 $148,027
60-80% 1,343 $251,775,000 $187,472
80-100% 7,547 $1,409,115,000 $186,712
Over 100% 204 $49,270,000 $241,520
Under 20% 547 $6,115,000 $11,179

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 1,038 $262,220,000 $252,620
$150k-250k 394 $113,840,000 $288,934
$50k-75k 3,325 $573,905,000 $172,603
$50k-or less 3,681 $466,525,000 $126,739
$75k-100k 1,382 $297,800,000 $215,485
$Over $250k 96 $31,680,000 $330,000

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 6,962 $1,249,330,000 $179,450
Black 2,224 $367,970,000 $165,454
Not provided 521 $99,915,000 $191,775
Asian 243 $39,625,000 $163,066
American Indian 26 $4,540,000 $174,615
Native Hawaiian 6 $1,270,000 $211,667
Other Asian 4 $560,000 $140,000
Other Pacific Islander 2 $380,000 $190,000

Approval Rates

Total approvals of all applications
97.53%

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
88.22%

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 9,988 $1,763,590,000 $176,571

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 4,807 $774,615,000 $161,143
$1k-2k 2,959 $545,775,000 $184,446
$2k-3k 1,129 $209,945,000 $185,957
$3k-4k 902 $180,470,000 $200,078
$5k+ 179 $51,265,000 $286,397

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
Single Family (1-4 Units):Manufactured 330 $36,560,000 $110,788
Single Family (1-4 Units):Site-Built 9,658 $1,727,030,000 $178,819