Taylor Morrison Home Funding

MAITLAND, FL 32751

LEI: 54930057D962HC4SF615

Tax ID: 52-2337558

2019 Data | 2018 Data


Overview

Taylor Morrison Home Funding is a small mortgage company specializing in Home Purchase loans. Taylor Morrison Home Funding 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 Phoenix, Houston, Orlando, Austin, and Dallas 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. Taylor Morrison Home Funding is typically a medium-low fee high fee exceptionally high fee lendor.


Originations

5,606

Origination Dollar Volume (All Markets)

$1,933,950,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 4,714 $1,644,670,000 $348,891
FHA 493 $144,525,000 $293,154
VA 384 $140,840,000 $366,771
USDA 15 $3,915,000 $261,000

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 5,586 $1,924,910,000 $344,595
Refi 16 $7,930,000 $495,625
Cash Out Refi 4 $1,110,000 $277,500

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
PHOENIX-MESA-CHANDLER, AZ 895 $304,965,000 $340,743
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 651 $218,215,000 $335,200
ORLANDO-KISSIMMEE-SANFORD, FL 560 $175,190,000 $312,839
AUSTIN-ROUND ROCK-GEORGETOWN, TX 472 $171,700,000 $363,771
DALLAS-PLANO-IRVING, TX 417 $153,025,000 $366,966
CHARLOTTE-CONCORD-GASTONIA, NC-SC 389 $128,115,000 $329,344
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 348 $109,350,000 $314,224
SACRAMENTO-ROSEVILLE-FOLSOM, CA 245 $105,795,000 $431,816
TAMPA-ST. PETERSBURG-CLEARWATER, FL 303 $83,845,000 $276,716
NORTH PORT-SARASOTA-BRADENTON, FL 241 $72,675,000 $301,556
DENVER-AURORA-LAKEWOOD, CO 172 $69,700,000 $405,233
RALEIGH-CARY, NC 168 $54,950,000 $327,083
ANAHEIM-SANTA ANA-IRVINE, CA 79 $53,795,000 $680,949
NAPLES-MARCO ISLAND, FL 105 $37,995,000 $361,857
LAKELAND-WINTER HAVEN, FL 129 $29,035,000 $225,078
OAKLAND-BERKELEY-LIVERMORE, CA 37 $26,315,000 $711,216
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 55 $23,675,000 $430,455
JACKSONVILLE, FL 60 $19,330,000 $322,167
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 22 $17,490,000 $795,000
STOCKTON, CA 30 $17,080,000 $569,333
DURHAM-CHAPEL HILL, NC 59 $15,685,000 $265,847
CAPE CORAL-FORT MYERS, FL 51 $11,985,000 $235,000
CHICAGO-NAPERVILLE-EVANSTON, IL 25 $7,515,000 $300,600
PORT ST. LUCIE, FL 31 $6,925,000 $223,387
FORT WORTH-ARLINGTON-GRAPEVINE, TX 21 $6,425,000 $305,952
GAINESVILLE, GA 19 $4,835,000 $254,474
LAKE COUNTY-KENOSHA COUNTY, IL-WI 8 $4,050,000 $506,250
ELGIN, IL 7 $2,135,000 $305,000
SHERMAN-DENISON, TX 5 $1,445,000 $289,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 1 $425,000 $425,000
SAN ANTONIO-NEW BRAUNFELS, TX 1 $285,000 $285,000

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 $375,000 $375,000
2.5-3% 40 $14,270,000 $356,750
3-4% 3,040 $1,089,380,000 $358,349
4-5% 2,318 $768,190,000 $331,402
5-6% 201 $59,005,000 $293,557
6-7% 3 $1,425,000 $475,000
7-8% 3 $1,305,000 $435,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 63 $4,765,000 $75,635
$100k-200k 534 $83,770,000 $156,873
$200k-400k 3,349 $1,010,305,000 $301,674
$400k-600k 1,460 $682,140,000 $467,219
$600k-1000k 179 $125,035,000 $698,520
$Over $1MM 21 $27,935,000 $1,330,238

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% 245 $39,545,000 $161,408
40-60% 576 $150,300,000 $260,938
60-80% 1,735 $649,015,000 $374,072
80-100% 2,932 $1,062,100,000 $362,244
Over 100% 81 $29,295,000 $361,667
Under 20% 35 $3,105,000 $88,714

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 1,797 $623,215,000 $346,809
$150k-250k 1,431 $571,525,000 $399,389
$50k-75k 748 $181,140,000 $242,166
$50k-or less 159 $27,535,000 $173,176
$75k-100k 975 $286,795,000 $294,149
$Over $250k 496 $243,740,000 $491,411

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 3,260 $1,090,280,000 $334,442
Asian 1,050 $408,950,000 $389,476
Not provided 734 $249,160,000 $339,455
Black 472 $153,060,000 $324,280
Asian Indian 24 $10,470,000 $436,250
American Indian 34 $9,990,000 $293,824
Native Hawaiian 13 $4,565,000 $351,154
Filipino 9 $4,095,000 $455,000
Other Asian 6 $1,760,000 $293,333
Korean 2 $820,000 $410,000
Chinese 1 $595,000 $595,000
Vietnamese 1 $205,000 $205,000

Approval Rates

Total approvals of all applications
96.33%

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
76.75%

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 5,606 $1,933,950,000 $344,979

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 130 $20,230,000 $155,615
$1k-2k 2,287 $794,065,000 $347,208
$2k-3k 857 $280,685,000 $327,520
$3k-4k 1,154 $378,070,000 $327,617
$5k+ 1,174 $459,810,000 $391,661

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):Site-Built 5,606 $1,933,950,000 $344,979