Mountain West Financial Inc.

REDLANDS, CA 92374

LEI: 549300WEOD0TL2O6EU67

Tax ID: 33-0419992

2019 Data | 2018 Data


Overview

Mountain West Financial Inc. is a small mortgage company specializing in Home Purchase and Refi loans. Mountain West Financial Inc. has a high proportion of conventional loans. They have a a high proportion of FHA loans. They have a low ratio of USDA loans. Their top markets include Riverside, Sacramento, Los Angeles, Anaheim, and San Diego 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. Mountain West Financial Inc. is typically a low fee medium-low fee lendor.


Originations

6,400

Origination Dollar Volume (All Markets)

$1,650,670,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 4,246 $948,680,000 $223,429
FHA 1,835 $580,835,000 $316,531
VA 283 $113,355,000 $400,548
USDA 36 $7,800,000 $216,667

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 4,355 $988,745,000 $227,037
Refi 1,048 $362,580,000 $345,973
Cash Out Refi 997 $299,345,000 $300,246

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
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 2,782 $657,520,000 $236,348
SACRAMENTO-ROSEVILLE-FOLSOM, CA 993 $241,415,000 $243,117
LOS ANGELES-LONG BEACH-GLENDALE, CA 588 $201,330,000 $342,398
ANAHEIM-SANTA ANA-IRVINE, CA 201 $79,015,000 $393,109
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 160 $56,360,000 $352,250
SANTA CRUZ-WATSONVILLE, CA 118 $55,140,000 $467,288
OAKLAND-BERKELEY-LIVERMORE, CA 159 $52,085,000 $327,579
VALLEJO, CA 121 $32,015,000 $264,587
Outside of Metro Areas 143 $28,795,000 $201,364
BAKERSFIELD, CA 184 $23,530,000 $127,880
STOCKTON, CA 112 $20,760,000 $185,357
SALINAS, CA 54 $19,360,000 $358,519
DENVER-AURORA-LAKEWOOD, CO 61 $18,635,000 $305,492
FRESNO, CA 123 $18,435,000 $149,878
LAS VEGAS-HENDERSON-PARADISE, NV 66 $15,250,000 $231,061
PHOENIX-MESA-CHANDLER, AZ 61 $14,525,000 $238,115
GRANTS PASS, OR 52 $14,510,000 $279,038
MODESTO, CA 69 $13,335,000 $193,261
OXNARD-THOUSAND OAKS-VENTURA, CA 33 $12,205,000 $369,848
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 26 $8,700,000 $334,615
SANTA ROSA-PETALUMA, CA 19 $7,895,000 $415,526
YUBA CITY, CA 38 $7,250,000 $190,789
MERCED, CA 39 $6,385,000 $163,718
PROVO-OREM, UT 19 $5,185,000 $272,895
SANTA MARIA-SANTA BARBARA, CA 14 $4,050,000 $289,286
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA 7 $3,825,000 $546,429
SAN LUIS OBISPO-PASO ROBLES, CA 9 $3,685,000 $409,444
VISALIA, CA 30 $3,150,000 $105,000
MEDFORD, OR 11 $2,645,000 $240,455
GREELEY, CO 9 $2,635,000 $292,778
NAPA, CA 8 $2,510,000 $313,750
SALT LAKE CITY, UT 8 $2,200,000 $275,000
MADERA, CA 12 $2,130,000 $177,500
CHICO, CA 9 $2,125,000 $236,111
HANFORD-CORCORAN, CA 11 $1,255,000 $114,091
REDDING, CA 7 $1,135,000 $162,143
ST. GEORGE, UT 4 $1,070,000 $267,500
LAKE HAVASU CITY-KINGMAN, AZ 4 $910,000 $227,500
EL CENTRO, CA 6 $790,000 $131,667
COLORADO SPRINGS, CO 2 $780,000 $390,000
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 2 $710,000 $355,000
BOULDER, CO 2 $580,000 $290,000
FORT COLLINS, CO 3 $575,000 $191,667
SEATTLE-BELLEVUE-KENT, WA 2 $510,000 $255,000
SALEM, OR 2 $500,000 $250,000
AUSTIN-ROUND ROCK-GEORGETOWN, TX 1 $485,000 $485,000
TUCSON, AZ 4 $410,000 $102,500
BELLINGHAM, WA 1 $385,000 $385,000
FLAGSTAFF, AZ 1 $345,000 $345,000
OGDEN-CLEARFIELD, UT 2 $320,000 $160,000
EUGENE-SPRINGFIELD, OR 1 $305,000 $305,000
MCALLEN-EDINBURG-MISSION, TX 2 $270,000 $135,000
PRESCOTT VALLEY-PRESCOTT, AZ 1 $205,000 $205,000
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 1 $205,000 $205,000
PUEBLO, CO 2 $180,000 $90,000
MIDLAND, TX 1 $155,000 $155,000

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% 760 $6,130,000 $8,066
2.5-3% 425 $10,895,000 $25,635
3-4% 2,613 $808,355,000 $309,359
4-5% 2,152 $684,240,000 $317,955
5-6% 416 $132,160,000 $317,692
6-7% 25 $8,115,000 $324,600
7-8% 4 $350,000 $87,500
Over 8% 5 $425,000 $85,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,446 $17,970,000 $12,427
$100k-200k 674 $109,120,000 $161,899
$200k-400k 3,031 $895,175,000 $295,340
$400k-600k 1,065 $496,535,000 $466,230
$600k-1000k 177 $122,565,000 $692,458
$Over $1MM 7 $9,305,000 $1,329,286

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% 121 $22,555,000 $186,405
40-60% 417 $113,645,000 $272,530
60-80% 1,294 $435,080,000 $336,229
80-100% 3,097 $1,040,645,000 $336,017
Over 100% 63 $21,975,000 $348,810
Under 20% 1,408 $16,770,000 $11,911

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 1,599 $481,265,000 $300,979
$150k-250k 555 $238,445,000 $429,631
$50k-75k 1,695 $323,495,000 $190,853
$50k-or less 596 $89,940,000 $150,906
$75k-100k 1,650 $387,120,000 $234,618
$Over $250k 145 $73,995,000 $510,310

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 4,936 $1,279,250,000 $259,167
Not provided 664 $170,780,000 $257,199
Asian 324 $97,350,000 $300,463
Black 406 $88,280,000 $217,438
American Indian 35 $7,595,000 $217,000
Native Hawaiian 35 $7,415,000 $211,857

Approval Rates

Total approvals of all applications
90.95%

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
65.39%

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 6,400 $1,650,670,000 $257,917

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 2,268 $302,090,000 $133,197
$1k-2k 1,368 $456,450,000 $333,662
$2k-3k 681 $196,775,000 $288,950
$3k-4k 840 $247,120,000 $294,190
$5k+ 1,242 $448,230,000 $360,894

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 131 $23,135,000 $176,603
Single Family (1-4 Units):Site-Built 6,269 $1,627,535,000 $259,616