Commerce Home Mortgage Inc.
San Ramon, CA 94583
LEI: 5493004AS1SPBQOFDR49
Tax ID: 68-0295876
Overview
Commerce Home Mortgage Inc. is a
small
mortgage company specializing in
Home Purchase and Refi loans.
Commerce Home Mortgage Inc. 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 Oakland, Los Angeles, Riverside, El Paso, and Denver 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.
Commerce Home Mortgage Inc. is typically a
medium-low fee
lendor.
Originations
7,070
Origination Dollar Volume (All Markets)
$2,668,620,000
Product Mix
| Loan Type |
Originations |
Total Value |
Average Loan |
| Conventional |
4,804 |
$2,051,790,000 |
$427,100 |
| FHA |
1,763 |
$460,325,000 |
$261,103 |
| VA |
472 |
$149,110,000 |
$315,911 |
| USDA |
31 |
$7,395,000 |
$238,548 |
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 |
4,510 |
$1,536,470,000 |
$340,681 |
| Home Improvement |
108 |
$42,820,000 |
$396,481 |
| Refi |
1,513 |
$692,605,000 |
$457,769 |
| Cash Out Refi |
939 |
$396,725,000 |
$422,497 |
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 |
|
OAKLAND-BERKELEY-LIVERMORE, CA
|
915
|
$532,265,000 |
$581,710 |
|
LOS ANGELES-LONG BEACH-GLENDALE, CA
|
519
|
$308,155,000 |
$593,748 |
|
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA
|
543
|
$177,925,000 |
$327,670 |
|
EL PASO, TX
|
838
|
$132,020,000 |
$157,542 |
|
DENVER-AURORA-LAKEWOOD, CO
|
344
|
$131,650,000 |
$382,703 |
|
ANAHEIM-SANTA ANA-IRVINE, CA
|
226
|
$124,500,000 |
$550,885 |
|
REDDING, CA
|
464
|
$120,790,000 |
$260,323 |
|
PORTLAND-VANCOUVER-HILLSBORO, OR-WA
|
315
|
$113,875,000 |
$361,508 |
|
SAN JOSE-SUNNYVALE-SANTA CLARA, CA
|
133
|
$100,055,000 |
$752,293 |
|
VISALIA, CA
|
323
|
$81,795,000 |
$253,235 |
|
Outside of Metro Areas
|
302 |
$78,900,000 |
$261,258 |
|
CHICO, CA
|
294
|
$75,200,000 |
$255,782 |
|
SACRAMENTO-ROSEVILLE-FOLSOM, CA
|
197
|
$74,395,000 |
$377,640 |
|
BOULDER, CO
|
140
|
$70,670,000 |
$504,786 |
|
SAN DIEGO-CHULA VISTA-CARLSBAD, CA
|
115
|
$58,145,000 |
$505,609 |
|
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA
|
48
|
$38,910,000 |
$810,625 |
|
SANTA CRUZ-WATSONVILLE, CA
|
57
|
$38,595,000 |
$677,105 |
|
VALLEJO, CA
|
100
|
$37,610,000 |
$376,100 |
|
PHOENIX-MESA-CHANDLER, AZ
|
125
|
$30,625,000 |
$245,000 |
|
STOCKTON, CA
|
63
|
$21,965,000 |
$348,651 |
|
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL
|
70
|
$21,840,000 |
$312,000 |
|
FORT COLLINS, CO
|
67
|
$20,955,000 |
$312,761 |
|
SALEM, OR
|
75
|
$20,835,000 |
$277,800 |
|
GREELEY, CO
|
51
|
$18,215,000 |
$357,157 |
|
FRESNO, CA
|
47
|
$15,145,000 |
$322,234 |
|
DALLAS-PLANO-IRVING, TX
|
42
|
$12,170,000 |
$289,762 |
|
OXNARD-THOUSAND OAKS-VENTURA, CA
|
20
|
$11,470,000 |
$573,500 |
|
SALINAS, CA
|
11
|
$11,465,000 |
$1,042,273 |
|
ALBUQUERQUE, NM
|
56
|
$11,160,000 |
$199,286 |
|
SALT LAKE CITY, UT
|
31
|
$11,135,000 |
$359,194 |
|
BEND, OR
|
33
|
$10,635,000 |
$322,273 |
|
SEATTLE-BELLEVUE-KENT, WA
|
17
|
$10,375,000 |
$610,294 |
|
HOUSTON-THE WOODLANDS-SUGAR LAND, TX
|
37
|
$9,785,000 |
$264,459 |
|
YUBA CITY, CA
|
30
|
$9,380,000 |
$312,667 |
|
SAN RAFAEL, CA
|
12
|
$9,040,000 |
$753,333 |
|
TACOMA-LAKEWOOD, WA
|
26
|
$8,080,000 |
$310,769 |
|
TAMPA-ST. PETERSBURG-CLEARWATER, FL
|
30
|
$8,070,000 |
$269,000 |
|
BAKERSFIELD, CA
|
33
|
$6,775,000 |
$205,303 |
|
FORT WORTH-ARLINGTON-GRAPEVINE, TX
|
32
|
$6,670,000 |
$208,438 |
|
MIAMI-MIAMI BEACH-KENDALL, FL
|
15
|
$6,105,000 |
$407,000 |
|
NAPA, CA
|
9
|
$5,705,000 |
$633,889 |
|
ORLANDO-KISSIMMEE-SANFORD, FL
|
7
|
$5,505,000 |
$786,429 |
|
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL
|
16
|
$4,890,000 |
$305,625 |
|
LAS CRUCES, NM
|
23
|
$4,475,000 |
$194,565 |
|
OLYMPIA-LACEY-TUMWATER, WA
|
11
|
$4,315,000 |
$392,273 |
|
SAN LUIS OBISPO-PASO ROBLES, CA
|
9
|
$3,765,000 |
$418,333 |
|
SANTA ROSA-PETALUMA, CA
|
9
|
$3,695,000 |
$410,556 |
|
AUSTIN-ROUND ROCK-GEORGETOWN, TX
|
11
|
$3,375,000 |
$306,818 |
|
SANTA FE, NM
|
11
|
$3,355,000 |
$305,000 |
|
SAN ANTONIO-NEW BRAUNFELS, TX
|
14
|
$3,270,000 |
$233,571 |
|
ALBANY-LEBANON, OR
|
13
|
$3,095,000 |
$238,077 |
|
COLORADO SPRINGS, CO
|
10
|
$2,750,000 |
$275,000 |
|
HANFORD-CORCORAN, CA
|
9
|
$2,725,000 |
$302,778 |
|
OGDEN-CLEARFIELD, UT
|
10
|
$2,700,000 |
$270,000 |
|
PROVO-OREM, UT
|
7
|
$2,385,000 |
$340,714 |
|
MERCED, CA
|
8
|
$2,070,000 |
$258,750 |
|
SANTA MARIA-SANTA BARBARA, CA
|
4
|
$1,850,000 |
$462,500 |
|
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA
|
12
|
$1,840,000 |
$153,333 |
|
LAKE HAVASU CITY-KINGMAN, AZ
|
6
|
$1,630,000 |
$271,667 |
|
MODESTO, CA
|
6
|
$1,480,000 |
$246,667 |
|
GRAND JUNCTION, CO
|
5
|
$1,395,000 |
$279,000 |
|
ODESSA, TX
|
5
|
$1,175,000 |
$235,000 |
|
KILLEEN-TEMPLE, TX
|
7
|
$1,075,000 |
$153,571 |
|
EUGENE-SPRINGFIELD, OR
|
4
|
$1,010,000 |
$252,500 |
|
PORT ST. LUCIE, FL
|
3
|
$955,000 |
$318,333 |
|
BOISE CITY, ID
|
3
|
$895,000 |
$298,333 |
|
SHERMAN-DENISON, TX
|
3
|
$885,000 |
$295,000 |
|
CORVALLIS, OR
|
3
|
$795,000 |
$265,000 |
|
RENO, NV
|
3
|
$765,000 |
$255,000 |
|
FLAGSTAFF, AZ
|
3
|
$765,000 |
$255,000 |
|
ST. GEORGE, UT
|
2
|
$760,000 |
$380,000 |
|
PRESCOTT VALLEY-PRESCOTT, AZ
|
3
|
$695,000 |
$231,667 |
|
NORTH PORT-SARASOTA-BRADENTON, FL
|
3
|
$675,000 |
$225,000 |
|
TUCSON, AZ
|
3
|
$645,000 |
$215,000 |
|
GRANTS PASS, OR
|
2
|
$560,000 |
$280,000 |
|
AMARILLO, TX
|
3
|
$425,000 |
$141,667 |
|
LAS VEGAS-HENDERSON-PARADISE, NV
|
1
|
$345,000 |
$345,000 |
|
POCATELLO, ID
|
1
|
$315,000 |
$315,000 |
|
LONGVIEW, WA
|
1
|
$315,000 |
$315,000 |
|
EL CENTRO, CA
|
1
|
$305,000 |
$305,000 |
|
PENSACOLA-FERRY PASS-BRENT, FL
|
1
|
$285,000 |
$285,000 |
|
BEAUMONT-PORT ARTHUR, TX
|
2
|
$260,000 |
$130,000 |
|
KENNEWICK-RICHLAND, WA
|
1
|
$225,000 |
$225,000 |
|
SPOKANE-SPOKANE VALLEY, WA
|
1
|
$195,000 |
$195,000 |
|
BREMERTON-SILVERDALE-PORT ORCHARD, WA
|
1
|
$165,000 |
$165,000 |
|
LEWISTON, ID-WA
|
1
|
$155,000 |
$155,000 |
|
PUEBLO, CO
|
1
|
$125,000 |
$125,000 |
|
SEBASTIAN-VERO BEACH, FL
|
1
|
$125,000 |
$125,000 |
|
WACO, TX
|
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 |
| 2.5-3% |
31 |
$9,315,000 |
$300,484 |
| 3-4% |
2,950 |
$1,129,520,000 |
$382,888 |
| 4-5% |
2,964 |
$1,074,670,000 |
$362,574 |
| 5-6% |
962 |
$371,320,000 |
$385,988 |
| 6-7% |
141 |
$74,265,000 |
$526,702 |
| 7-8% |
15 |
$6,015,000 |
$401,000 |
| Over 8% |
7 |
$3,515,000 |
$502,143 |
Loan Sizing
| Loan Size |
Originations |
Total Value |
Average Loan |
| $100,000 or less |
113 |
$9,735,000 |
$86,150 |
| $100k-200k |
1,436 |
$220,490,000 |
$153,545 |
| $200k-400k |
3,091 |
$903,815,000 |
$292,402 |
| $400k-600k |
1,543 |
$733,475,000 |
$475,356 |
| $600k-1000k |
676 |
$497,540,000 |
$736,006 |
| $Over $1MM |
211 |
$303,565,000 |
$1,438,697 |
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% |
237 |
$78,745,000 |
$332,257 |
| 40-60% |
834 |
$371,370,000 |
$445,288 |
| 60-80% |
2,109 |
$959,225,000 |
$454,825 |
| 80-100% |
3,697 |
$1,195,705,000 |
$323,426 |
| Over 100% |
113 |
$35,285,000 |
$312,257 |
| Under 20% |
28 |
$6,870,000 |
$245,357 |
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 |
1,482 |
$576,380,000 |
$388,920 |
| $150k-250k |
1,042 |
$531,600,000 |
$510,173 |
| $50k-75k |
1,435 |
$337,715,000 |
$235,341 |
| $50k-or less |
1,188 |
$371,060,000 |
$312,340 |
| $75k-100k |
1,252 |
$387,440,000 |
$309,457 |
| $Over $250k |
536 |
$418,640,000 |
$781,045 |
Ethnicity Mix
| Applicant Ethnicity |
Originations |
Total Value |
Average Loan |
| White |
6,039 |
$2,210,375,000 |
$366,017 |
| Asian |
495 |
$256,975,000 |
$519,141 |
| Black |
263 |
$90,355,000 |
$343,555 |
| Not provided |
187 |
$82,595,000 |
$441,684 |
| American Indian |
51 |
$15,385,000 |
$301,667 |
| Native Hawaiian |
35 |
$12,935,000 |
$369,571 |
Approval Rates
Total approvals of all applications
98.77%
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
72.91%
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 |
7,070 |
$2,668,620,000 |
$377,457 |
Origination Fees
| Origination Fee |
Originations |
Total Value |
Average Loan |
| $<1k |
804 |
$347,220,000 |
$431,866 |
| $1k-2k |
3,361 |
$1,194,465,000 |
$355,390 |
| $2k-3k |
1,067 |
$321,995,000 |
$301,776 |
| $3k-4k |
954 |
$326,130,000 |
$341,855 |
| $5k+ |
881 |
$478,095,000 |
$542,673 |
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 |
121 |
$26,185,000 |
$216,405 |
| Single Family (1-4 Units):Site-Built |
6,949 |
$2,642,435,000 |
$380,261 |