Nova Financial & Investment Corporation Dba: Nova Home Loans

TUCSON, AZ 85711

LEI: 549300HIVO8XPBPNVG69

Tax ID: 86-0415227

2019 Data | 2018 Data


Overview

Nova Financial & Investment Corporation Dba: Nova Home Loans is a small mortgage company specializing in Home Purchase and Refi loans. Nova Financial & Investment Corporation Dba: Nova Home Loans 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, Tucson, Denver, Las Vegas, and Yuma 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. Nova Financial & Investment Corporation Dba: Nova Home Loans is typically a low fee medium-low fee lendor.


Originations

15,372

Origination Dollar Volume (All Markets)

$3,845,710,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 10,245 $2,681,285,000 $261,716
FHA 3,111 $631,625,000 $203,030
VA 1,863 $507,545,000 $272,434
USDA 153 $25,255,000 $165,065

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 9,189 $2,235,435,000 $243,273
Home Improvement 131 $33,185,000 $253,321
Refi 3,794 $1,037,830,000 $273,545
Cash Out Refi 2,258 $539,260,000 $238,822

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 4,447 $1,100,765,000 $247,530
TUCSON, AZ 4,912 $1,030,030,000 $209,697
DENVER-AURORA-LAKEWOOD, CO 2,160 $774,850,000 $358,727
LAS VEGAS-HENDERSON-PARADISE, NV 733 $194,895,000 $265,887
YUMA, AZ 953 $155,675,000 $163,353
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 234 $122,640,000 $524,103
SIERRA VISTA-DOUGLAS, AZ 538 $100,030,000 $185,929
Outside of Metro Areas 345 $75,865,000 $219,899
COLORADO SPRINGS, CO 194 $55,980,000 $288,557
LAKE HAVASU CITY-KINGMAN, AZ 200 $32,050,000 $160,250
FLAGSTAFF, AZ 106 $31,770,000 $299,717
BOULDER, CO 74 $31,360,000 $423,784
PRESCOTT VALLEY-PRESCOTT, AZ 116 $27,830,000 $239,914
GREELEY, CO 90 $27,640,000 $307,111
FORT COLLINS, CO 38 $11,600,000 $305,263
LOS ANGELES-LONG BEACH-GLENDALE, CA 19 $11,385,000 $599,211
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 19 $5,495,000 $289,211
DALLAS-PLANO-IRVING, TX 21 $5,195,000 $247,381
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 22 $5,080,000 $230,909
ANAHEIM-SANTA ANA-IRVINE, CA 12 $4,330,000 $360,833
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 8 $3,530,000 $441,250
INDIANAPOLIS-CARMEL-ANDERSON, IN 16 $3,140,000 $196,250
SACRAMENTO-ROSEVILLE-FOLSOM, CA 7 $2,805,000 $400,714
Outside of Metro Areas 7 $2,025,000 $289,286
AUSTIN-ROUND ROCK-GEORGETOWN, TX 6 $1,920,000 $320,000
SAN RAFAEL, CA 2 $1,450,000 $725,000
RENO, NV 3 $1,355,000 $451,667
VALLEJO, CA 3 $1,155,000 $385,000
PUEBLO, CO 5 $1,155,000 $231,000
OAKLAND-BERKELEY-LIVERMORE, CA 2 $1,120,000 $560,000
SAN LUIS OBISPO-PASO ROBLES, CA 2 $1,050,000 $525,000
GRAND JUNCTION, CO 5 $1,045,000 $209,000
MIAMI-MIAMI BEACH-KENDALL, FL 3 $1,015,000 $338,333
ALBUQUERQUE, NM 7 $995,000 $142,143
TACOMA-LAKEWOOD, WA 2 $990,000 $495,000
FORT WORTH-ARLINGTON-GRAPEVINE, TX 5 $985,000 $197,000
CHICAGO-NAPERVILLE-EVANSTON, IL 3 $985,000 $328,333
SALINAS, CA 2 $880,000 $440,000
SEATTLE-BELLEVUE-KENT, WA 2 $870,000 $435,000
LAS CRUCES, NM 3 $815,000 $271,667
SANTA MARIA-SANTA BARBARA, CA 2 $780,000 $390,000
BEND, OR 2 $750,000 $375,000
BREMERTON-SILVERDALE-PORT ORCHARD, WA 2 $740,000 $370,000
JACKSONVILLE, FL 2 $670,000 $335,000
SAN ANTONIO-NEW BRAUNFELS, TX 3 $575,000 $191,667
EL CENTRO, CA 2 $570,000 $285,000
HOMOSASSA SPRINGS, FL 3 $565,000 $188,333
CAPE CORAL-FORT MYERS, FL 2 $540,000 $270,000
SALT LAKE CITY, UT 2 $530,000 $265,000
KENNEWICK-RICHLAND, WA 1 $455,000 $455,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 1 $405,000 $405,000
SPRINGFIELD, IL 1 $395,000 $395,000
PENSACOLA-FERRY PASS-BRENT, FL 1 $375,000 $375,000
MEDFORD, OR 1 $375,000 $375,000
OLYMPIA-LACEY-TUMWATER, WA 1 $365,000 $365,000
GRANTS PASS, OR 1 $345,000 $345,000
REDDING, CA 1 $305,000 $305,000
BAKERSFIELD, CA 2 $300,000 $150,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 1 $295,000 $295,000
ODESSA, TX 1 $295,000 $295,000
OGDEN-CLEARFIELD, UT 1 $265,000 $265,000
ORLANDO-KISSIMMEE-SANFORD, FL 1 $255,000 $255,000
HANFORD-CORCORAN, CA 1 $255,000 $255,000
SANTA FE, NM 1 $235,000 $235,000
PANAMA CITY, FL 1 $235,000 $235,000
NORTH PORT-SARASOTA-BRADENTON, FL 1 $175,000 $175,000
EL PASO, TX 1 $145,000 $145,000
SANTA ROSA-PETALUMA, CA 1 $135,000 $135,000
KILLEEN-TEMPLE, TX 1 $125,000 $125,000
PORT ST. LUCIE, FL 1 $115,000 $115,000
OXNARD-THOUSAND OAKS-VENTURA, CA 1 $115,000 $115,000
CORPUS CHRISTI, TX 1 $115,000 $115,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 1 $105,000 $105,000
FARMINGTON, NM 1 $55,000 $55,000

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% 150 $1,350,000 $9,000
2.5-3% 36 $7,270,000 $201,944
3-4% 6,465 $1,783,095,000 $275,807
4-5% 7,098 $1,723,710,000 $242,844
5-6% 1,516 $307,150,000 $202,606
6-7% 88 $19,200,000 $218,182
7-8% 16 $3,420,000 $213,750
Over 8% 3 $515,000 $171,667

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 933 $62,605,000 $67,101
$100k-200k 5,486 $854,780,000 $155,811
$200k-400k 7,122 $1,962,610,000 $275,570
$400k-600k 1,499 $699,875,000 $466,895
$600k-1000k 287 $207,445,000 $722,805
$Over $1MM 45 $58,395,000 $1,297,667

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% 302 $48,580,000 $160,861
40-60% 1,154 $262,650,000 $227,600
60-80% 4,753 $1,276,825,000 $268,636
80-100% 8,745 $2,187,025,000 $250,089
Over 100% 230 $65,870,000 $286,391
Under 20% 188 $4,760,000 $25,319

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 2,715 $816,275,000 $300,654
$150k-250k 1,523 $580,335,000 $381,047
$50k-75k 3,966 $818,720,000 $206,435
$50k-or less 3,798 $640,580,000 $168,662
$75k-100k 2,740 $683,250,000 $249,361
$Over $250k 532 $279,560,000 $525,489

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 13,827 $3,444,305,000 $249,100
Not provided 598 $159,550,000 $266,806
Black 436 $108,900,000 $249,771
Asian 331 $89,255,000 $269,653
American Indian 104 $23,720,000 $228,077
Native Hawaiian 54 $14,050,000 $260,185
Vietnamese 3 $1,405,000 $468,333
Other Pacific Islander 4 $1,040,000 $260,000
Other Asian 4 $920,000 $230,000
Japanese 4 $910,000 $227,500
Filipino 2 $620,000 $310,000
Asian Indian 2 $420,000 $210,000
Korean 1 $285,000 $285,000
Native Hawiian 1 $195,000 $195,000
Chinese 1 $135,000 $135,000

Approval Rates

Total approvals of all applications
95.42%

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
77.33%

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 15,372 $3,845,710,000 $250,176

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 8,619 $2,196,305,000 $254,821
$1k-2k 5,017 $1,170,905,000 $233,387
$2k-3k 989 $250,415,000 $253,200
$3k-4k 575 $170,735,000 $296,930
$5k+ 126 $48,040,000 $381,270

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 531 $70,305,000 $132,401
Single Family (1-4 Units):Site-Built 14,841 $3,775,405,000 $254,390