Prudential Affordable Mortgage Company, Llc

Newark, NJ 07102

LEI: 549300J5WHZ3UBAKJW15

Tax ID: 54-1890355

2019 Data | 2018 Data


Overview

Prudential Affordable Mortgage Company, Llc is a small mortgage company specializing in Home Purchase, Refi, and Cash Out Refi loans. Prudential Affordable Mortgage Company, Llc has a high proportion of conventional loans. Their top markets include Washington, Baltimore, Atlanta, Nassau County, and Richmond 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. Prudential Affordable Mortgage Company, Llc is typically a lendor.


Originations

72

Origination Dollar Volume (All Markets)

$2,061,900,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 72 $2,061,900,000 $28,637,500

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 28 $697,760,000 $24,920,000
Home Improvement 1 $59,575,000 $59,575,000
Refi 25 $871,885,000 $34,875,400
Cash Out Refi 18 $432,680,000 $24,037,778

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 11 $410,765,000 $37,342,273
BALTIMORE-COLUMBIA-TOWSON, MD 4 $214,470,000 $53,617,500
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 5 $186,065,000 $37,213,000
NASSAU COUNTY-SUFFOLK COUNTY, NY 4 $123,420,000 $30,855,000
RICHMOND, VA 3 $108,585,000 $36,195,000
FORT WORTH-ARLINGTON-GRAPEVINE, TX 5 $99,115,000 $19,823,000
ORLANDO-KISSIMMEE-SANFORD, FL 2 $93,140,000 $46,570,000
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 5 $76,125,000 $15,225,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 2 $71,860,000 $35,930,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 4 $70,860,000 $17,715,000
SALT LAKE CITY, UT 1 $70,575,000 $70,575,000
PHILADELPHIA, PA 1 $59,575,000 $59,575,000
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 2 $50,840,000 $25,420,000
DENVER-AURORA-LAKEWOOD, CO 1 $46,315,000 $46,315,000
DURHAM-CHAPEL HILL, NC 1 $42,105,000 $42,105,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC 1 $36,425,000 $36,425,000
TACOMA-LAKEWOOD, WA 2 $35,990,000 $17,995,000
RALEIGH-CARY, NC 1 $33,355,000 $33,355,000
BOSTON, MA 1 $30,415,000 $30,415,000
SAN ANTONIO-NEW BRAUNFELS, TX 1 $28,485,000 $28,485,000
AUSTIN-ROUND ROCK-GEORGETOWN, TX 1 $22,145,000 $22,145,000
PENSACOLA-FERRY PASS-BRENT, FL 1 $21,145,000 $21,145,000
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 1 $20,895,000 $20,895,000
SEATTLE-BELLEVUE-KENT, WA 1 $19,875,000 $19,875,000
MEMPHIS, TN-MS-AR 1 $17,775,000 $17,775,000
SAVANNAH, GA 1 $15,515,000 $15,515,000
INDIANAPOLIS-CARMEL-ANDERSON, IN 1 $9,925,000 $9,925,000
BOULDER, CO 1 $8,895,000 $8,895,000
LAKE CHARLES, LA 1 $7,805,000 $7,805,000
LANSING-EAST LANSING, MI 1 $7,665,000 $7,665,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 1 $6,605,000 $6,605,000
VINELAND-BRIDGETON, NJ 1 $6,405,000 $6,405,000
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 1 $5,305,000 $5,305,000
PORTLAND-SOUTH PORTLAND, ME 1 $2,255,000 $2,255,000
NEW ORLEANS-METAIRIE, LA 1 $1,205,000 $1,205,000

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
3-4% 41 $1,444,265,000 $35,225,976
4-5% 25 $579,645,000 $23,185,800
5-6% 6 $37,990,000 $6,331,667

Loan Sizing

Loan Size Originations Total Value Average Loan
$Over $1MM 72 $2,061,900,000 $28,637,500

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% 2 $13,320,000 $6,660,000
40-60% 3 $72,945,000 $24,315,000
60-80% 55 $1,656,435,000 $30,117,000
80-100% 8 $299,780,000 $37,472,500
Under 20% 4 $19,420,000 $4,855,000

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

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
Not applicable 72 $2,061,900,000 $28,637,500

Approval Rates

Total approvals of all applications
98.68%

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
89.83%

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 72 $2,061,900,000 $28,637,500

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 72 $2,061,900,000 $28,637,500