Cardinal Financial Company Lp

CHARLOTTE, NC 28273
LEI: 549300VORTI31GZTJL53
Tax ID: 23-2470039

2019 Data

Overview

Cardinal Financial Company Lp is a large mortgage company specializing in Home Purchase and Refi loans. Cardinal Financial Company Lp has a high proportion of conventional loans and an average proportion of FHA loans. They have a low ratio of USDA loans. Their top markets include Phoenix, Dallas, Las Vegas, Nashville, and Washington 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. Cardinal Financial Company Lp is typically a medium-low / high fee lendor.

Originations

37,926

Origination Dollar Volume (All Markets)

$9,702,460,000

Product Mix

Conventional / 23,171 / $6,141,445,000
FHA / 10,433 / $2,302,865,000
VA / 3,645 / $1,147,265,000
USDA / 677 / $110,885,000

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

Home Purchase / 21,866 / $5,227,650,000
Home Improvement / 2,450 / $567,030,000
Refi / 7,817 / $2,478,795,000
Cash Out Refi / 5,793 / $1,428,985,000

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

Outside of Metro Areas / $479,960,000
PHOENIX-MESA-CHANDLER, AZ / $450,975,000
DALLAS-PLANO-IRVING, TX / $415,310,000
LAS VEGAS-HENDERSON-PARADISE, NV / $389,430,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN / $334,525,000
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV / $314,940,000
HOUSTON-THE WOODLANDS-SUGAR LAND, TX / $269,205,000
FORT WORTH-ARLINGTON-GRAPEVINE, TX / $255,200,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI / $239,650,000
Outside of Metro Areas / $228,060,000
NASSAU COUNTY-SUFFOLK COUNTY, NY / $222,770,000
SAN DIEGO-CHULA VISTA-CARLSBAD, CA / $206,525,000
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ / $204,900,000
PORTLAND-VANCOUVER-HILLSBORO, OR-WA / $198,520,000
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA / $185,115,000
URBAN HONOLULU, HI / $173,895,000
LOS ANGELES-LONG BEACH-GLENDALE, CA / $170,850,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC / $165,025,000
DENVER-AURORA-LAKEWOOD, CO / $164,195,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL / $151,780,000
SPOKANE-SPOKANE VALLEY, WA / $141,640,000
OAKLAND-BERKELEY-LIVERMORE, CA / $130,220,000
NEW BRUNSWICK-LAKEWOOD, NJ / $125,575,000
SACRAMENTO-ROSEVILLE-FOLSOM, CA / $125,100,000
COLORADO SPRINGS, CO / $121,905,000

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

<2.5% / 1,116 / $9,010,000
2.5-3% / 621 / $183,235,000
3-4% / 15,942 / $4,668,050,000
4-5% / 15,660 / $3,891,360,000
5-6% / 4,300 / $889,540,000
6-7% / 273 / $59,385,000
7-8% / 12 / $1,140,000
Over 8% / 2 / $740,000

Loan Sizing

$100,000 or less / 3,260 / $163,050,000
$100k-200k / 11,925 / $1,840,515,000
$200k-400k / 17,315 / $4,864,285,000
$400k-600k / 4,426 / $2,065,000,000
$600k-1000k / 902 / $637,880,000
$Over $1MM / 98 / $131,730,000

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

20-40% / 789 / $154,045,000
40-60% / 2,926 / $737,420,000
60-80% / 10,573 / $2,981,405,000
80-100% / 21,436 / $5,537,900,000
Over 100% / 794 / $269,900,000
Under 20% / 1,408 / $21,790,000

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

$100k-150k / 7,743 / $2,409,595,000
$150k-250k / 4,358 / $1,646,380,000
$50k-75k / 9,837 / $1,916,605,000
$50k-or less / 7,500 / $1,250,170,000
$75k-100k / 7,005 / $1,776,115,000
$Over $250k / 1,483 / $703,595,000

Ethnicity Mix

White / 28,046 / $7,013,870,000
Not provided / 3,816 / $1,056,390,000
Black / 3,119 / $719,955,000
Asian / 2,151 / $676,275,000
Asian Indian / 226 / $75,240,000
American Indian / 190 / $47,270,000
Native Hawaiian / 139 / $41,745,000
Other Asian / 80 / $23,140,000
Filipino / 56 / $19,580,000
Vietnamese / 35 / $9,035,000
Chinese / 27 / $8,165,000
Korean / 14 / $4,710,000
Other Pacific Islander / 17 / $4,595,000
Japanese / 6 / $1,570,000
Samoan / 4 / $920,000

Approval Rates

Total approvals of all applications
92.21%

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
-36.26%

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

NA / 37,926 / $9,702,460,000

Origination Fees

$<1k / 5,516 / $1,276,160,000
$1k-2k / 10,735 / $2,829,295,000
$2k-3k / 5,861 / $1,247,975,000
$3k-4k / 8,337 / $1,844,835,000
$5k+ / 7,477 / $2,504,195,000

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

Single Family (1-4 Units):Manufactured / 748 / $98,420,000
Single Family (1-4 Units):Site-Built / 37,178 / $9,604,040,000