Leader Bank Na

Arlington, MA 02474

LEI: 549300FK3AFCFVAPH234

Tax ID: 04-3557920

2019 Data | 2018 Data


Overview

Leader Bank Na is a small mortgage company specializing in Home Purchase and Refi loans. Leader Bank Na has a high proportion of conventional loans. They have a a low proportion of FHA loans. (This may mean they shy away from first time homebuyers.) Their top markets include Cambridge, Boston, Worcester, Providence, and Barnstable Town 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. Leader Bank Na is typically a low fee medium-low fee lendor.


Originations

6,847

Origination Dollar Volume (All Markets)

$3,010,425,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 6,642 $2,925,870,000 $440,510
FHA 120 $48,940,000 $407,833
VA 85 $35,615,000 $419,000

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 3,602 $1,608,530,000 $446,566
Home Improvement 53 $10,405,000 $196,321
Other 155 $28,455,000 $183,581
Refi 2,257 $1,028,395,000 $455,647
Cash Out Refi 780 $334,640,000 $429,026

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
CAMBRIDGE-NEWTON-FRAMINGHAM, MA 3,053 $1,436,095,000 $470,388
BOSTON, MA 2,383 $1,086,675,000 $456,011
WORCESTER, MA-CT 360 $122,700,000 $340,833
PROVIDENCE-WARWICK, RI-MA 268 $89,440,000 $333,731
BARNSTABLE TOWN, MA 162 $62,420,000 $385,309
BRIDGEPORT-STAMFORD-NORWALK, CT 59 $35,375,000 $599,576
HARTFORD-EAST HARTFORD-MIDDLETOWN, CT 118 $32,590,000 $276,186
Outside of Metro Areas 94 $28,530,000 $303,511
ROCKINGHAM COUNTY-STRAFFORD COUNTY, NH 79 $26,915,000 $340,696
MANCHESTER-NASHUA, NH 64 $19,080,000 $298,125
PORTLAND-SOUTH PORTLAND, ME 29 $11,455,000 $395,000
SPRINGFIELD, MA 25 $5,625,000 $225,000
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 7 $4,425,000 $632,143
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 11 $4,255,000 $386,818
NEW HAVEN-MILFORD, CT 11 $3,175,000 $288,636
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 9 $2,985,000 $331,667
NORWICH-NEW LONDON, CT 7 $2,915,000 $416,429
MIAMI-MIAMI BEACH-KENDALL, FL 7 $2,705,000 $386,429
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 6 $2,440,000 $406,667
DENVER-AURORA-LAKEWOOD, CO 3 $2,285,000 $761,667
NAPLES-MARCO ISLAND, FL 4 $1,780,000 $445,000
NORTH PORT-SARASOTA-BRADENTON, FL 6 $1,660,000 $276,667
BALTIMORE-COLUMBIA-TOWSON, MD 3 $1,545,000 $515,000
NASSAU COUNTY-SUFFOLK COUNTY, NY 4 $1,500,000 $375,000
CAPE CORAL-FORT MYERS, FL 5 $1,365,000 $273,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 6 $1,160,000 $193,333
HILTON HEAD ISLAND-BLUFFTON, SC 2 $970,000 $485,000
PITTSFIELD, MA 4 $940,000 $235,000
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 3 $915,000 $305,000
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 2 $810,000 $405,000
BURLINGTON-SOUTH BURLINGTON, VT 2 $790,000 $395,000
CHICAGO-NAPERVILLE-EVANSTON, IL 2 $730,000 $365,000
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 3 $695,000 $231,667
THE VILLAGES, FL 2 $680,000 $340,000
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY 2 $660,000 $330,000
PHILADELPHIA, PA 2 $610,000 $305,000
DURHAM-CHAPEL HILL, NC 1 $585,000 $585,000
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 1 $575,000 $575,000
GLENS FALLS, NY 1 $545,000 $545,000
RALEIGH-CARY, NC 3 $545,000 $181,667
NEWARK, NJ-PA 2 $530,000 $265,000
BOULDER, CO 1 $505,000 $505,000
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 2 $470,000 $235,000
JOHNSON CITY, TN 1 $465,000 $465,000
NEW BRUNSWICK-LAKEWOOD, NJ 2 $450,000 $225,000
CHARLESTON-NORTH CHARLESTON, SC 1 $445,000 $445,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 1 $445,000 $445,000
SACRAMENTO-ROSEVILLE-FOLSOM, CA 1 $425,000 $425,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC 2 $420,000 $210,000
ALBANY-SCHENECTADY-TROY, NY 2 $410,000 $205,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 1 $365,000 $365,000
FORT COLLINS, CO 1 $315,000 $315,000
CHARLOTTESVILLE, VA 1 $305,000 $305,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 1 $305,000 $305,000
TUCSON, AZ 1 $285,000 $285,000
LAKELAND-WINTER HAVEN, FL 1 $275,000 $275,000
ROCHESTER, NY 1 $275,000 $275,000
SEATTLE-BELLEVUE-KENT, WA 1 $275,000 $275,000
LANCASTER, PA 1 $275,000 $275,000
CAMDEN, NJ 1 $255,000 $255,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 1 $255,000 $255,000
ASHEVILLE, NC 1 $235,000 $235,000
FLORENCE, SC 1 $225,000 $225,000
ORLANDO-KISSIMMEE-SANFORD, FL 1 $215,000 $215,000
PITTSBURGH, PA 1 $205,000 $205,000
PHOENIX-MESA-CHANDLER, AZ 1 $185,000 $185,000
TULSA, OK 1 $165,000 $165,000
GREENVILLE-ANDERSON, SC 1 $155,000 $155,000
LEWISTON-AUBURN, ME 1 $145,000 $145,000

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% 9 $325,000 $36,111
2.5-3% 81 $60,905,000 $751,914
3-4% 4,889 $2,168,335,000 $443,513
4-5% 1,652 $708,310,000 $428,759
5-6% 108 $50,800,000 $470,370
6-7% 101 $17,945,000 $177,673
7-8% 7 $3,805,000 $543,571

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 182 $11,600,000 $63,736
$100k-200k 475 $72,245,000 $152,095
$200k-400k 2,714 $851,400,000 $313,707
$400k-600k 2,398 $1,146,900,000 $478,274
$600k-1000k 903 $657,045,000 $727,625
$Over $1MM 175 $271,235,000 $1,549,914

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% 398 $138,180,000 $347,186
40-60% 1,001 $420,005,000 $419,585
60-80% 2,940 $1,424,990,000 $484,690
80-100% 2,235 $993,575,000 $444,553
Over 100% 8 $3,210,000 $401,250
Under 20% 265 $30,465,000 $114,962

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 1,935 $753,145,000 $389,222
$150k-250k 2,154 $978,600,000 $454,318
$50k-75k 491 $131,215,000 $267,240
$50k-or less 89 $16,515,000 $185,562
$75k-100k 872 $289,940,000 $332,500
$Over $250k 1,205 $734,865,000 $609,846

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 5,139 $2,202,885,000 $428,660
Asian 947 $418,325,000 $441,737
Not provided 571 $247,195,000 $432,916
Not applicable 96 $104,460,000 $1,088,125
Black 84 $33,750,000 $401,786
American Indian 6 $2,280,000 $380,000
Native Hawaiian 3 $1,055,000 $351,667
Other Asian 1 $475,000 $475,000

Approval Rates

Total approvals of all applications
97.46%

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
85.77%

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 6,847 $3,010,425,000 $439,671

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 4,315 $1,542,405,000 $357,452
$1k-2k 1,536 $1,057,120,000 $688,229
$2k-3k 128 $67,650,000 $528,516
$3k-4k 66 $37,240,000 $564,242
$5k+ 43 $27,475,000 $638,953

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 35 $68,485,000 $1,956,714
Single Family (1-4 Units):Manufactured 1 $285,000 $285,000
Single Family (1-4 Units):Site-Built 6,811 $2,941,655,000 $431,898