University Of Iowa Community Credit Union

North Liberty, IA 52317

LEI: 549300W4FT4H1UWPGU95

Tax ID: 42-0804594

2019 Data | 2018 Data


Overview

University Of Iowa Community Credit Union is a small mortgage company specializing in Home Purchase and Cash Out Refi loans. University Of Iowa Community Credit Union has a high proportion of conventional loans. They have a low ratio of USDA loans. Their top markets include Des Moines, Iowa City, Cedar Rapids, Davenport, and Waterloo 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. University Of Iowa Community Credit Union is typically a low fee lendor.


Originations

12,881

Origination Dollar Volume (All Markets)

$1,989,055,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 12,583 $1,919,085,000 $152,514
VA 252 $62,450,000 $247,817
USDA 46 $7,520,000 $163,478

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 6,529 $1,071,145,000 $164,060
Home Improvement 1,444 $77,690,000 $53,802
Other 294 $17,870,000 $60,782
NA 4 $280,000 $70,000
Refi 1,514 $232,700,000 $153,699
Cash Out Refi 3,096 $589,370,000 $190,365

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
DES MOINES-WEST DES MOINES, IA 2,869 $550,165,000 $191,762
IOWA CITY, IA 2,911 $485,445,000 $166,762
CEDAR RAPIDS, IA 3,049 $386,555,000 $126,781
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL 1,110 $171,850,000 $154,820
WATERLOO-CEDAR FALLS, IA 1,263 $165,835,000 $131,302
Outside of Metro Areas 1,464 $163,480,000 $111,667
AMES, IA 97 $39,135,000 $403,454
WAUSAU-WESTON, WI 1 $8,805,000 $8,805,000
DUBUQUE, IA 69 $8,805,000 $127,609
CHICAGO-NAPERVILLE-EVANSTON, IL 21 $4,825,000 $229,762
ELGIN, IL 8 $1,570,000 $196,250
OMAHA-COUNCIL BLUFFS, NE-IA 9 $1,495,000 $166,111
SIOUX CITY, IA-NE-SD 5 $575,000 $115,000
ST. LOUIS, MO-IL 3 $435,000 $145,000
BLOOMINGTON, IL 2 $80,000 $40,000

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% 584 $141,160,000 $241,712
3-4% 4,699 $995,745,000 $211,906
4-5% 5,196 $703,990,000 $135,487
5-6% 1,905 $127,385,000 $66,869
6-7% 380 $15,720,000 $41,368
7-8% 96 $3,820,000 $39,792
Over 8% 21 $1,235,000 $58,810

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 5,570 $229,640,000 $41,228
$100k-200k 3,549 $522,555,000 $147,240
$200k-400k 3,181 $861,605,000 $270,860
$400k-600k 526 $240,870,000 $457,928
$600k-1000k 23 $17,215,000 $748,478
$Over $1MM 32 $117,170,000 $3,661,563

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% 1,413 $126,755,000 $89,706
40-60% 825 $152,685,000 $185,073
60-80% 2,689 $648,365,000 $241,118
80-100% 4,436 $936,330,000 $211,075
Over 100% 76 $18,000,000 $236,842
Under 20% 3,442 $106,920,000 $31,063

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 3,027 $506,255,000 $167,246
$150k-250k 1,756 $366,470,000 $208,696
$50k-75k 2,967 $323,555,000 $109,051
$50k-or less 1,829 $144,065,000 $78,767
$75k-100k 2,438 $331,270,000 $135,878
$Over $250k 604 $186,920,000 $309,470

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 11,116 $1,626,850,000 $146,352
Not provided 904 $132,060,000 $146,084
Not applicable 255 $130,105,000 $510,216
Asian 331 $69,395,000 $209,653
Black 236 $25,900,000 $109,746
American Indian 28 $2,880,000 $102,857
Native Hawaiian 6 $830,000 $138,333
Asian Indian 2 $640,000 $320,000
Vietnamese 1 $215,000 $215,000
Korean 1 $125,000 $125,000
Guamanian 1 $55,000 $55,000

Approval Rates

Total approvals of all applications
98.39%

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
79.68%

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
0.0 693 $36,545,000 $52,734
NA 12,188 $1,952,510,000 $160,199

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 9,871 $1,600,325,000 $162,124
$1k-2k 324 $91,260,000 $281,667
$2k-3k 37 $12,065,000 $326,081
$3k-4k 18 $6,810,000 $378,333
$5k+ 4 $2,420,000 $605,000

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

Dwelling Type Originations Total Value Average Loan
Multifamily:Site-Built 27 $93,825,000 $3,475,000
Single Family (1-4 Units):Site-Built 12,854 $1,895,230,000 $147,443