Potomac Mortgage Group, Inc.

Fairfax, VA 22030

LEI: 549300PGT5K5GACK2444

Tax ID: 26-4030355

2019 Data | 2018 Data


Overview

Potomac Mortgage Group, Inc. is a small mortgage company specializing in Home Purchase and Refi loans. Potomac Mortgage Group, Inc. 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, Charlotte, Frederick, Myrtle Beach, and Atlanta 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. Potomac Mortgage Group, Inc. is typically a low fee medium-low fee lendor.


Originations

4,278

Origination Dollar Volume (All Markets)

$1,572,920,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 3,411 $1,281,995,000 $375,841
FHA 384 $93,760,000 $244,167
VA 455 $191,745,000 $421,418
USDA 28 $5,420,000 $193,571

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 3,138 $1,107,080,000 $352,798
Home Improvement 9 $2,345,000 $260,556
Refi 849 $361,565,000 $425,872
Cash Out Refi 282 $101,930,000 $361,454

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 1,942 $920,990,000 $474,248
CHARLOTTE-CONCORD-GASTONIA, NC-SC 399 $108,495,000 $271,917
Outside of Metro Areas 445 $95,135,000 $213,787
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 118 $61,930,000 $524,831
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 157 $39,775,000 $253,344
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 114 $39,540,000 $346,842
MORGANTOWN, WV 128 $28,470,000 $222,422
RALEIGH-CARY, NC 106 $24,740,000 $233,396
GREENSBORO-HIGH POINT, NC 85 $24,285,000 $285,706
BALTIMORE-COLUMBIA-TOWSON, MD 66 $21,910,000 $331,970
DURHAM-CHAPEL HILL, NC 67 $20,525,000 $306,343
WILMINGTON, NC 64 $19,130,000 $298,906
HILTON HEAD ISLAND-BLUFFTON, SC 51 $15,625,000 $306,373
HAGERSTOWN-MARTINSBURG, MD-WV 75 $15,095,000 $201,267
WINSTON-SALEM, NC 55 $15,085,000 $274,273
COLUMBIA, SC 49 $14,275,000 $291,327
RICHMOND, VA 21 $7,765,000 $369,762
CHARLESTON-NORTH CHARLESTON, SC 21 $7,435,000 $354,048
WINCHESTER, VA-WV 21 $7,025,000 $334,524
DENVER-AURORA-LAKEWOOD, CO 6 $5,540,000 $923,333
FAYETTEVILLE, NC 23 $5,345,000 $232,391
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 13 $5,085,000 $391,154
SALISBURY, MD-DE 17 $4,975,000 $292,647
JACKSONVILLE, NC 18 $4,900,000 $272,222
BURLINGTON, NC 15 $4,195,000 $279,667
HICKORY-LENOIR-MORGANTON, NC 13 $3,065,000 $235,769
TAMPA-ST. PETERSBURG-CLEARWATER, FL 9 $2,975,000 $330,556
CHARLESTON, WV 15 $2,895,000 $193,000
ASHEVILLE, NC 9 $2,575,000 $286,111
CALIFORNIA-LEXINGTON PARK, MD 7 $2,215,000 $316,429
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 5 $2,215,000 $443,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 6 $2,170,000 $361,667
SAVANNAH, GA 5 $1,825,000 $365,000
NEW BERN, NC 8 $1,780,000 $222,500
ROCKY MOUNT, NC 10 $1,630,000 $163,000
NORTH PORT-SARASOTA-BRADENTON, FL 4 $1,550,000 $387,500
GREENVILLE, NC 7 $1,465,000 $209,286
PALM BAY-MELBOURNE-TITUSVILLE, FL 4 $1,460,000 $365,000
NAPLES-MARCO ISLAND, FL 3 $1,435,000 $478,333
COLUMBUS, OH 4 $1,350,000 $337,500
CHARLOTTESVILLE, VA 4 $1,330,000 $332,500
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 3 $1,275,000 $425,000
GREENVILLE-ANDERSON, SC 5 $1,215,000 $243,000
CAPE CORAL-FORT MYERS, FL 5 $1,195,000 $239,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 4 $1,170,000 $292,500
GOLDSBORO, NC 5 $1,065,000 $213,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 3 $1,025,000 $341,667
PITTSBURGH, PA 5 $1,025,000 $205,000
LYNCHBURG, VA 3 $1,025,000 $341,667
JACKSONVILLE, FL 2 $1,000,000 $500,000
MIAMI-MIAMI BEACH-KENDALL, FL 4 $900,000 $225,000
MEMPHIS, TN-MS-AR 6 $830,000 $138,333
PHILADELPHIA, PA 2 $830,000 $415,000
AUGUSTA-RICHMOND COUNTY, GA-SC 3 $775,000 $258,333
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 2 $770,000 $385,000
ORLANDO-KISSIMMEE-SANFORD, FL 3 $715,000 $238,333
PORT ST. LUCIE, FL 3 $635,000 $211,667
HUNTINGTON-ASHLAND, WV-KY-OH 3 $635,000 $211,667
BLACKSBURG-CHRISTIANSBURG, VA 2 $550,000 $275,000
DALLAS-PLANO-IRVING, TX 1 $535,000 $535,000
ATHENS-CLARKE COUNTY, GA 2 $530,000 $265,000
KNOXVILLE, TN 1 $505,000 $505,000
SAN ANTONIO-NEW BRAUNFELS, TX 1 $485,000 $485,000
PARKERSBURG-VIENNA, WV 2 $480,000 $240,000
ROANOKE, VA 2 $410,000 $205,000
CLEVELAND-ELYRIA, OH 1 $375,000 $375,000
SUMTER, SC 1 $325,000 $325,000
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ 1 $305,000 $305,000
STATE COLLEGE, PA 1 $285,000 $285,000
WILMINGTON, DE-MD-NJ 1 $285,000 $285,000
PANAMA CITY, FL 1 $285,000 $285,000
DAYTON-KETTERING, OH 1 $275,000 $275,000
CHATTANOOGA, TN-GA 1 $265,000 $265,000
CANTON-MASSILLON, OH 1 $265,000 $265,000
BRUNSWICK, GA 1 $245,000 $245,000
BECKLEY, WV 1 $235,000 $235,000
WEIRTON-STEUBENVILLE, WV-OH 2 $230,000 $115,000
MACON-BIBB COUNTY, GA 1 $225,000 $225,000
LEXINGTON-FAYETTE, KY 1 $225,000 $225,000
CLARKSVILLE, TN-KY 1 $185,000 $185,000
YORK-HANOVER, PA 1 $125,000 $125,000

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
2.5-3% 28 $11,940,000 $426,429
3-4% 2,435 $978,715,000 $401,936
4-5% 1,575 $517,145,000 $328,346
5-6% 234 $62,550,000 $267,308
6-7% 5 $1,925,000 $385,000
7-8% 1 $645,000 $645,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 142 $9,980,000 $70,282
$100k-200k 791 $123,985,000 $156,745
$200k-400k 1,812 $532,280,000 $293,753
$400k-600k 1,020 $488,730,000 $479,147
$600k-1000k 431 $309,055,000 $717,065
$Over $1MM 82 $108,890,000 $1,327,927

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% 99 $22,645,000 $228,737
40-60% 317 $112,315,000 $354,306
60-80% 1,330 $556,510,000 $418,429
80-100% 2,366 $817,710,000 $345,609
Over 100% 72 $31,910,000 $443,194
Under 20% 19 $615,000 $32,368

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 1,037 $373,485,000 $360,159
$150k-250k 948 $444,100,000 $468,460
$50k-75k 709 $165,245,000 $233,068
$50k-or less 368 $56,650,000 $153,940
$75k-100k 668 $192,740,000 $288,533
$Over $250k 443 $293,655,000 $662,878

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 2,648 $906,320,000 $342,266
Not provided 1,189 $507,275,000 $426,640
Black 249 $82,895,000 $332,912
Asian 147 $59,465,000 $404,524
American Indian 18 $6,830,000 $379,444
Asian Indian 14 $5,090,000 $363,571
Other Asian 8 $2,640,000 $330,000
Native Hawaiian 3 $1,735,000 $578,333
Chinese 2 $670,000 $335,000

Approval Rates

Total approvals of all applications
98.26%

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
71.09%

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 4,278 $1,572,920,000 $367,676

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 1,605 $439,785,000 $274,009
$1k-2k 1,983 $822,315,000 $414,682
$2k-3k 272 $92,060,000 $338,456
$3k-4k 211 $92,315,000 $437,512
$5k+ 207 $126,445,000 $610,845

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 37 $5,105,000 $137,973
Single Family (1-4 Units):Site-Built 4,241 $1,567,815,000 $369,680