Schoolsfirst Federal Credit Union

Santa Ana, CA 92706

LEI: 5493001NJEVHTZW7FG34

Tax ID: 95-1068595

2019 Data | 2018 Data


Overview

Schoolsfirst Federal Credit Union is a small mortgage company specializing in Home Purchase and Cash Out Refi loans. Schoolsfirst Federal Credit Union has a high proportion of conventional loans. Their top markets include Anaheim, Riverside, Los Angeles, San Diego, and Oakland among others. They have an 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. Schoolsfirst Federal Credit Union is typically a low fee lendor.


Originations

9,073

Origination Dollar Volume (All Markets)

$2,476,575,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 9,073 $2,476,575,000 $272,961

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 1,594 $772,410,000 $484,573
Home Improvement 1,740 $151,100,000 $86,839
Other 1,138 $111,160,000 $97,680
Refi 1,108 $448,670,000 $404,937
Cash Out Refi 3,493 $993,235,000 $284,350

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
ANAHEIM-SANTA ANA-IRVINE, CA 4,486 $1,377,680,000 $307,107
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 2,453 $502,405,000 $204,812
LOS ANGELES-LONG BEACH-GLENDALE, CA 1,779 $490,145,000 $275,517
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 147 $47,385,000 $322,347
OAKLAND-BERKELEY-LIVERMORE, CA 23 $10,545,000 $458,478
OXNARD-THOUSAND OAKS-VENTURA, CA 28 $9,470,000 $338,214
SACRAMENTO-ROSEVILLE-FOLSOM, CA 20 $6,300,000 $315,000
Outside of Metro Areas 22 $5,310,000 $241,364
SAN LUIS OBISPO-PASO ROBLES, CA 19 $3,745,000 $197,105
BAKERSFIELD, CA 23 $3,475,000 $151,087
SALINAS, CA 7 $2,815,000 $402,143
SANTA MARIA-SANTA BARBARA, CA 9 $2,745,000 $305,000
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA 4 $2,600,000 $650,000
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 7 $1,985,000 $283,571
SANTA CRUZ-WATSONVILLE, CA 4 $1,270,000 $317,500
SANTA ROSA-PETALUMA, CA 4 $1,260,000 $315,000
FRESNO, CA 7 $1,205,000 $172,143
VALLEJO, CA 4 $1,170,000 $292,500
CHICO, CA 3 $935,000 $311,667
SAN RAFAEL, CA 2 $880,000 $440,000
VISALIA, CA 4 $670,000 $167,500
MODESTO, CA 1 $595,000 $595,000
EL CENTRO, CA 6 $490,000 $81,667
MERCED, CA 2 $470,000 $235,000
STOCKTON, CA 2 $400,000 $200,000
REDDING, CA 4 $400,000 $100,000
MADERA, CA 2 $190,000 $95,000
YUBA CITY, CA 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% 1 $175,000 $175,000
2.5-3% 1,277 $175,665,000 $137,561
3-4% 3,426 $1,426,190,000 $416,284
4-5% 1,970 $673,390,000 $341,822
5-6% 2,020 $174,760,000 $86,515
6-7% 320 $22,910,000 $71,594
7-8% 53 $3,035,000 $57,264
Over 8% 6 $450,000 $75,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 2,886 $157,920,000 $54,719
$100k-200k 1,612 $217,000,000 $134,615
$200k-400k 1,936 $562,940,000 $290,775
$400k-600k 1,717 $865,825,000 $504,266
$600k-1000k 870 $609,000,000 $700,000
$Over $1MM 52 $63,890,000 $1,228,654

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% 1,195 $230,745,000 $193,092
40-60% 915 $313,805,000 $342,956
60-80% 2,007 $970,785,000 $483,700
80-100% 1,382 $704,130,000 $509,501
Under 20% 3,574 $257,110,000 $71,939

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 3,013 $814,475,000 $270,320
$150k-250k 2,523 $880,135,000 $348,845
$50k-75k 1,023 $163,405,000 $159,731
$50k-or less 357 $40,955,000 $114,720
$75k-100k 1,565 $316,145,000 $202,010
$Over $250k 510 $233,170,000 $457,196

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 7,392 $2,001,220,000 $270,728
Asian 756 $250,850,000 $331,812
Not provided 582 $144,220,000 $247,801
Black 253 $59,225,000 $234,091
American Indian 56 $13,440,000 $240,000
Native Hawaiian 34 $7,620,000 $224,118

Approval Rates

Total approvals of all applications
88.51%

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
83.50%

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 9,073 $2,476,575,000 $272,961

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 5,121 $1,705,355,000 $333,012
$1k-2k 475 $128,475,000 $270,474
$2k-3k 260 $87,620,000 $337,000
$3k-4k 303 $116,105,000 $383,185
$5k+ 287 $141,205,000 $492,003

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 12 $1,790,000 $149,167
Single Family (1-4 Units):Site-Built 9,061 $2,474,785,000 $273,125