First Heritage Mortgage, Llc

Fairfax, VA 22030

LEI: 549300EM8ID8J7F8OM55

Tax ID: 54-1822464

2019 Data | 2018 Data


Overview

First Heritage Mortgage, Llc is a small mortgage company specializing in Home Purchase loans. First Heritage Mortgage, Llc 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 Washington, Charlottesville, Raleigh, Richmond, and Frederick 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. First Heritage Mortgage, Llc is typically a medium-low fee lendor.


Originations

4,973

Origination Dollar Volume (All Markets)

$1,846,025,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 3,811 $1,387,415,000 $364,055
FHA 470 $152,990,000 $325,511
VA 648 $294,350,000 $454,244
USDA 44 $11,270,000 $256,136

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 3,952 $1,455,320,000 $368,249
Home Improvement 10 $2,200,000 $220,000
Refi 757 $296,355,000 $391,486
Cash Out Refi 254 $92,150,000 $362,795

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
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 2,824 $1,156,050,000 $409,366
CHARLOTTESVILLE, VA 450 $167,080,000 $371,289
RALEIGH-CARY, NC 338 $102,150,000 $302,219
RICHMOND, VA 285 $77,965,000 $273,561
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 173 $70,425,000 $407,081
BALTIMORE-COLUMBIA-TOWSON, MD 140 $48,930,000 $349,500
Outside of Metro Areas 155 $38,605,000 $249,065
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 91 $32,045,000 $352,143
DURHAM-CHAPEL HILL, NC 91 $28,535,000 $313,571
CALIFORNIA-LEXINGTON PARK, MD 86 $28,250,000 $328,488
CHARLESTON-NORTH CHARLESTON, SC 55 $17,475,000 $317,727
BLACKSBURG-CHRISTIANSBURG, VA 65 $14,505,000 $223,154
SALISBURY, MD-DE 28 $10,010,000 $357,500
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 29 $9,925,000 $342,241
WINCHESTER, VA-WV 27 $7,935,000 $293,889
STAUNTON, VA 22 $4,730,000 $215,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC 8 $2,660,000 $332,500
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 5 $2,055,000 $411,000
LYNCHBURG, VA 8 $1,820,000 $227,500
HAGERSTOWN-MARTINSBURG, MD-WV 6 $1,800,000 $300,000
ROANOKE, VA 9 $1,645,000 $182,778
ASHEVILLE, NC 3 $1,325,000 $441,667
HARRISONBURG, VA 6 $1,270,000 $211,667
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 3 $1,205,000 $401,667
ORLANDO-KISSIMMEE-SANFORD, FL 3 $1,165,000 $388,333
GETTYSBURG, PA 5 $1,095,000 $219,000
NAPLES-MARCO ISLAND, FL 2 $1,090,000 $545,000
WILMINGTON, NC 4 $1,030,000 $257,500
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 4 $1,020,000 $255,000
GREENSBORO-HIGH POINT, NC 5 $1,005,000 $201,000
WILMINGTON, DE-MD-NJ 4 $920,000 $230,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 3 $785,000 $261,667
PALM BAY-MELBOURNE-TITUSVILLE, FL 3 $755,000 $251,667
NEW BERN, NC 2 $640,000 $320,000
FAYETTEVILLE, NC 3 $585,000 $195,000
HILTON HEAD ISLAND-BLUFFTON, SC 2 $580,000 $290,000
WINSTON-SALEM, NC 2 $560,000 $280,000
JACKSONVILLE, NC 3 $555,000 $185,000
BRUNSWICK, GA 1 $535,000 $535,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 2 $520,000 $260,000
YORK-HANOVER, PA 2 $470,000 $235,000
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ 1 $445,000 $445,000
COLUMBIA, SC 2 $430,000 $215,000
AUGUSTA-RICHMOND COUNTY, GA-SC 1 $425,000 $425,000
GREENVILLE, NC 1 $405,000 $405,000
ERIE, PA 1 $385,000 $385,000
WHEELING, WV-OH 1 $345,000 $345,000
WARNER ROBINS, GA 1 $295,000 $295,000
SAVANNAH, GA 1 $295,000 $295,000
PITTSBURGH, PA 1 $295,000 $295,000
LANCASTER, PA 1 $275,000 $275,000
JACKSONVILLE, FL 1 $255,000 $255,000
CHATTANOOGA, TN-GA 1 $205,000 $205,000
WILLIAMSPORT, PA 1 $155,000 $155,000
KINGSPORT-BRISTOL, TN-VA 1 $65,000 $65,000
CUMBERLAND, MD-WV 1 $45,000 $45,000

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 $485,000 $485,000
2.5-3% 34 $11,330,000 $333,235
3-4% 3,121 $1,221,275,000 $391,309
4-5% 1,614 $552,900,000 $342,565
5-6% 185 $51,725,000 $279,595
6-7% 11 $5,515,000 $501,364
7-8% 4 $1,580,000 $395,000
Over 8% 3 $1,215,000 $405,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 157 $5,065,000 $32,261
$100k-200k 457 $74,335,000 $162,659
$200k-400k 2,544 $772,740,000 $303,750
$400k-600k 1,347 $641,035,000 $475,898
$600k-1000k 426 $300,960,000 $706,479
$Over $1MM 42 $51,890,000 $1,235,476

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% 84 $17,930,000 $213,452
40-60% 274 $91,280,000 $333,139
60-80% 1,252 $482,070,000 $385,040
80-100% 2,993 $1,143,155,000 $381,943
Over 100% 182 $78,820,000 $433,077
Under 20% 121 $2,545,000 $21,033

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 1,463 $544,475,000 $372,163
$150k-250k 1,051 $490,925,000 $467,103
$50k-75k 771 $194,785,000 $252,639
$50k-or less 233 $39,875,000 $171,137
$75k-100k 955 $303,695,000 $318,005
$Over $250k 385 $221,945,000 $576,481

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 2,640 $939,940,000 $356,038
Not provided 1,354 $541,870,000 $400,199
Black 604 $217,520,000 $360,132
Asian 318 $124,110,000 $390,283
Asian Indian 16 $8,190,000 $511,875
American Indian 17 $5,495,000 $323,235
Other Asian 14 $4,980,000 $355,714
Native Hawaiian 4 $1,680,000 $420,000
Filipino 4 $1,400,000 $350,000
Japanese 2 $840,000 $420,000

Approval Rates

Total approvals of all applications
98.78%

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
74.18%

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 4,973 $1,846,025,000 $371,210

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 714 $196,820,000 $275,658
$1k-2k 2,725 $1,009,625,000 $370,505
$2k-3k 543 $185,865,000 $342,293
$3k-4k 541 $220,995,000 $408,494
$5k+ 450 $232,720,000 $517,156

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 15 $1,945,000 $129,667
Single Family (1-4 Units):Site-Built 4,958 $1,844,080,000 $371,940