Commerce Home Mortgage Inc.

San Ramon, CA 94583

LEI: 5493004AS1SPBQOFDR49

Tax ID: 68-0295876

2019 Data | 2018 Data


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