Montecito Bank & Trust

SANTA BARBARA, CA 93101

LEI: 549300A7BPOO2YO2YE30

Tax ID: 95-2900153

2019 Data | 2018 Data


Overview

Montecito Bank & Trust is a small mortgage company specializing in Refi and Cash Out Refi loans. Montecito Bank & Trust has a high proportion of conventional loans. Their top markets include Oxnard, Santa Maria, Riverside, Los Angeles, and Seattle 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. Montecito Bank & Trust is typically a lendor.


Originations

124

Origination Dollar Volume (All Markets)

$1,631,030,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 124 $1,631,030,000 $13,153,468

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 48 $35,550,000 $740,625
Home Improvement 2 $210,000 $105,000
Other 7 $4,365,000 $623,571
Refi 32 $392,360,000 $12,261,250
Cash Out Refi 35 $1,198,545,000 $34,244,143

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
OXNARD-THOUSAND OAKS-VENTURA, CA 30 $831,200,000 $27,706,667
SANTA MARIA-SANTA BARBARA, CA 81 $427,035,000 $5,272,037
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 1 $360,005,000 $360,005,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 6 $8,120,000 $1,353,333
SEATTLE-BELLEVUE-KENT, WA 1 $2,005,000 $2,005,000
OAKLAND-BERKELEY-LIVERMORE, CA 1 $665,000 $665,000
ANAHEIM-SANTA ANA-IRVINE, CA 1 $575,000 $575,000
BAKERSFIELD, CA 1 $565,000 $565,000
SAN LUIS OBISPO-PASO ROBLES, CA 1 $555,000 $555,000
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 1 $305,000 $305,000

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

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 4 $300,000 $75,000
$100k-200k 7 $975,000 $139,286
$200k-400k 23 $6,545,000 $284,565
$400k-600k 31 $15,475,000 $499,194
$600k-1000k 31 $22,575,000 $728,226
$Over $1MM 28 $1,585,160,000 $56,612,857

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

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 13 $6,685,000 $514,231
$150k-250k 23 $373,485,000 $16,238,478
$50k-75k 10 $2,510,000 $251,000
$75k-100k 13 $4,695,000 $361,154
$Over $250k 29 $845,625,000 $29,159,483

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 110 $1,611,620,000 $14,651,091
Not applicable 11 $17,715,000 $1,610,455
Asian 1 $725,000 $725,000
Black 1 $585,000 $585,000
Not provided 1 $385,000 $385,000

Approval Rates

Total approvals of all applications
84.71%

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
79.84%

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
Exempt 124 $1,631,030,000 $13,153,468

Origination Fees

Origination Fee Originations Total Value Average Loan

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 9 $15,095,000 $1,677,222
Single Family (1-4 Units):Manufactured 14 $2,600,000 $185,714
Single Family (1-4 Units):Site-Built 101 $1,613,335,000 $15,973,614