Investors Bank

ISELIN, NJ 08830

LEI: 5493002VB77GOYB9O402

Tax ID: 22-1368780

2019 Data | 2018 Data


Overview

Investors Bank is a small mortgage company specializing in Home Purchase, Refi, and Cash Out Refi loans. Investors Bank 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, Newark, New Brunswick, Trenton, and Philadelphia 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. Investors Bank is typically a medium-low fee lendor.


Originations

3,277

Origination Dollar Volume (All Markets)

$1,969,095,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 3,244 $1,959,830,000 $604,140
FHA 33 $9,265,000 $280,758

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 1,621 $778,525,000 $480,275
Home Improvement 179 $20,765,000 $116,006
Other 164 $23,990,000 $146,280
Refi 691 $413,095,000 $597,822
Cash Out Refi 622 $732,720,000 $1,178,006

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 889 $789,615,000 $888,206
NEWARK, NJ-PA 868 $424,790,000 $489,389
NEW BRUNSWICK-LAKEWOOD, NJ 817 $257,195,000 $314,804
TRENTON-PRINCETON, NJ 220 $121,780,000 $553,545
PHILADELPHIA, PA 29 $70,985,000 $2,447,759
CAMDEN, NJ 169 $64,535,000 $381,864
NASSAU COUNTY-SUFFOLK COUNTY, NY 105 $54,455,000 $518,619
HARTFORD-EAST HARTFORD-MIDDLETOWN, CT 6 $51,410,000 $8,568,333
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 52 $29,650,000 $570,192
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ 39 $29,135,000 $747,051
SALISBURY, MD-DE 4 $23,170,000 $5,792,500
BRIDGEPORT-STAMFORD-NORWALK, CT 25 $18,365,000 $734,600
ATLANTIC CITY-HAMMONTON, NJ 10 $8,830,000 $883,000
SCRANTON--WILKES-BARRE, PA 1 $6,535,000 $6,535,000
OCEAN CITY, NJ 18 $6,300,000 $350,000
WILMINGTON, DE-MD-NJ 4 $3,440,000 $860,000
HARRISBURG-CARLISLE, PA 2 $3,230,000 $1,615,000
READING, PA 1 $2,195,000 $2,195,000
NEW HAVEN-MILFORD, CT 2 $700,000 $350,000
CAPE CORAL-FORT MYERS, FL 1 $385,000 $385,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 2 $350,000 $175,000
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY 2 $310,000 $155,000
Outside of Metro Areas 1 $285,000 $285,000
PORT ST. LUCIE, FL 1 $265,000 $265,000
EAST STROUDSBURG, PA 2 $230,000 $115,000
HOMOSASSA SPRINGS, FL 1 $225,000 $225,000
MIAMI-MIAMI BEACH-KENDALL, FL 2 $190,000 $95,000
PALM BAY-MELBOURNE-TITUSVILLE, FL 1 $155,000 $155,000
VINELAND-BRIDGETON, NJ 1 $155,000 $155,000
JACKSONVILLE, FL 1 $125,000 $125,000
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 1 $105,000 $105,000

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% 358 $1,860,000 $5,196
2.5-3% 57 $17,435,000 $305,877
3-4% 1,771 $996,155,000 $562,482
4-5% 987 $882,705,000 $894,331
5-6% 103 $70,885,000 $688,204
6-7% 1 $55,000 $55,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 670 $20,330,000 $30,343
$100k-200k 467 $68,535,000 $146,756
$200k-400k 872 $252,940,000 $290,069
$400k-600k 586 $291,960,000 $498,225
$600k-1000k 424 $315,010,000 $742,948
$Over $1MM 258 $1,020,320,000 $3,954,729

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% 254 $97,930,000 $385,551
40-60% 406 $327,130,000 $805,739
60-80% 1,177 $1,058,875,000 $899,639
80-100% 784 $340,740,000 $434,617
Over 100% 1 $10,395,000 $10,395,000
Under 20% 655 $134,025,000 $204,618

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 618 $169,730,000 $274,644
$150k-250k 734 $304,250,000 $414,510
$50k-75k 434 $57,590,000 $132,696
$50k-or less 224 $16,470,000 $73,527
$75k-100k 391 $77,275,000 $197,634
$Over $250k 647 $415,365,000 $641,986

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
Not applicable 187 $912,175,000 $4,877,941
White 1,898 $635,430,000 $334,789
Not provided 756 $276,950,000 $366,336
Asian 329 $119,335,000 $362,720
Black 94 $20,950,000 $222,872
Asian Indian 5 $2,615,000 $523,000
American Indian 5 $675,000 $135,000
Native Hawaiian 1 $345,000 $345,000
Japanese 1 $335,000 $335,000
Other Pacific Islander 1 $285,000 $285,000

Approval Rates

Total approvals of all applications
81.97%

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
86.91%

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 3,277 $1,969,095,000 $600,883

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 361 $76,385,000 $211,593
$1k-2k 1,828 $707,060,000 $386,794
$2k-3k 181 $96,385,000 $532,514
$3k-4k 86 $53,090,000 $617,326
$5k+ 73 $59,335,000 $812,808

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 170 $891,920,000 $5,246,588
Single Family (1-4 Units):Site-Built 3,107 $1,077,175,000 $346,693