Lake Michigan Credit Union

Grand Rapids, MI 49501-2848

LEI: 549300YB1H2FRI6JPM51

Tax ID: 38-1215360

2019 Data | 2018 Data


Overview

Lake Michigan Credit Union is a small mortgage company specializing in Home Purchase loans. Lake Michigan Credit Union has a high proportion of conventional loans. They have a a low proportion of FHA loans. (This may mean they shy away from first time homebuyers.) They have a low ratio of USDA loans. Their top markets include Grand Rapids, Warren, Cape Coral, Kalamazoo, and Detroit 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. Lake Michigan Credit Union is typically a low fee medium-low fee lendor.


Originations

17,393

Origination Dollar Volume (All Markets)

$3,403,605,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 16,419 $3,226,505,000 $196,510
FHA 713 $118,095,000 $165,631
VA 190 $47,700,000 $251,053
USDA 71 $11,305,000 $159,225

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 9,288 $2,240,860,000 $241,264
Home Improvement 2,329 $108,885,000 $46,752
Other 1,060 $70,190,000 $66,217
Refi 3,212 $672,980,000 $209,521
Cash Out Refi 1,504 $310,690,000 $206,576

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
GRAND RAPIDS-KENTWOOD, MI 8,298 $1,355,580,000 $163,362
WARREN-TROY-FARMINGTON HILLS, MI 2,210 $582,560,000 $263,602
Outside of Metro Areas 2,222 $420,350,000 $189,176
CAPE CORAL-FORT MYERS, FL 446 $169,440,000 $379,910
KALAMAZOO-PORTAGE, MI 906 $153,080,000 $168,962
DETROIT-DEARBORN-LIVONIA, MI 752 $152,750,000 $203,125
NAPLES-MARCO ISLAND, FL 318 $130,600,000 $410,692
MUSKEGON, MI 820 $121,100,000 $147,683
ANN ARBOR, MI 278 $81,820,000 $294,317
LANSING-EAST LANSING, MI 231 $39,535,000 $171,147
FLINT, MI 169 $34,405,000 $203,580
SAGINAW, MI 185 $25,785,000 $139,378
PUNTA GORDA, FL 81 $20,655,000 $255,000
ORLANDO-KISSIMMEE-SANFORD, FL 60 $20,200,000 $336,667
MONROE, MI 61 $15,345,000 $251,557
NILES, MI 49 $10,595,000 $216,224
TAMPA-ST. PETERSBURG-CLEARWATER, FL 29 $10,515,000 $362,586
NORTH PORT-SARASOTA-BRADENTON, FL 32 $9,480,000 $296,250
BATTLE CREEK, MI 51 $7,685,000 $150,686
BAY CITY, MI 31 $4,745,000 $153,065
SOUTH BEND-MISHAWAKA, IN-MI 21 $4,675,000 $222,619
MIDLAND, MI 25 $4,555,000 $182,200
JACKSON, MI 20 $4,400,000 $220,000
PORT ST. LUCIE, FL 4 $2,550,000 $637,500
CHICAGO-NAPERVILLE-EVANSTON, IL 10 $2,450,000 $245,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 7 $1,855,000 $265,000
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 8 $1,730,000 $216,250
INDIANAPOLIS-CARMEL-ANDERSON, IN 8 $1,660,000 $207,500
COLUMBUS, OH 5 $1,385,000 $277,000
LAKE COUNTY-KENOSHA COUNTY, IL-WI 3 $1,195,000 $398,333
OCALA, FL 5 $1,165,000 $233,000
MILWAUKEE-WAUKESHA, WI 5 $1,135,000 $227,000
THE VILLAGES, FL 5 $1,035,000 $207,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 2 $780,000 $390,000
JACKSONVILLE, FL 3 $775,000 $258,333
FORT WAYNE, IN 3 $735,000 $245,000
LAKELAND-WINTER HAVEN, FL 5 $665,000 $133,000
PALM BAY-MELBOURNE-TITUSVILLE, FL 3 $615,000 $205,000
AKRON, OH 3 $575,000 $191,667
GAINESVILLE, FL 1 $475,000 $475,000
HOMOSASSA SPRINGS, FL 3 $455,000 $151,667
ELKHART-GOSHEN, IN 2 $300,000 $150,000
CANTON-MASSILLON, OH 1 $285,000 $285,000
CINCINNATI, OH-KY-IN 1 $265,000 $265,000
ELGIN, IL 1 $235,000 $235,000
LAFAYETTE-WEST LAFAYETTE, IN 1 $185,000 $185,000
CLEVELAND-ELYRIA, OH 1 $185,000 $185,000
TOLEDO, OH 1 $185,000 $185,000
PENSACOLA-FERRY PASS-BRENT, FL 1 $165,000 $165,000
WAUSAU-WESTON, WI 1 $165,000 $165,000
BLOOMINGTON, IL 1 $145,000 $145,000
APPLETON, WI 1 $125,000 $125,000
CARBONDALE-MARION, IL 1 $115,000 $115,000
GARY, IN 1 $105,000 $105,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 1 $55,000 $55,000

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 $505,000 $168,333
2.5-3% 206 $54,310,000 $263,641
3-4% 6,785 $1,660,095,000 $244,671
4-5% 7,210 $1,433,940,000 $198,882
5-6% 2,400 $218,700,000 $91,125
6-7% 593 $27,425,000 $46,248
7-8% 142 $6,310,000 $44,437
Over 8% 54 $2,320,000 $42,963

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 5,078 $241,870,000 $47,631
$100k-200k 5,806 $869,500,000 $149,759
$200k-400k 4,957 $1,362,555,000 $274,875
$400k-600k 1,173 $548,845,000 $467,899
$600k-1000k 279 $203,675,000 $730,018
$Over $1MM 100 $177,160,000 $1,771,600

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% 1,747 $178,715,000 $102,298
40-60% 1,663 $387,085,000 $232,763
60-80% 4,389 $1,106,705,000 $252,154
80-100% 6,676 $1,619,210,000 $242,542
Over 100% 38 $9,430,000 $248,158
Under 20% 2,879 $102,445,000 $35,584

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 3,697 $756,835,000 $204,716
$150k-250k 2,264 $631,240,000 $278,816
$50k-75k 4,196 $594,010,000 $141,566
$50k-or less 2,835 $297,875,000 $105,071
$75k-100k 3,058 $496,850,000 $162,475
$Over $250k 1,150 $540,550,000 $470,043

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 13,085 $2,515,185,000 $192,219
Not provided 3,662 $711,740,000 $194,358
Not applicable 23 $57,915,000 $2,518,043
Asian 243 $55,485,000 $228,333
Black 321 $50,995,000 $158,863
American Indian 45 $8,345,000 $185,444
Asian Indian 2 $1,270,000 $635,000
Other Asian 4 $1,250,000 $312,500
Native Hawaiian 6 $1,150,000 $191,667
Other Pacific Islander 1 $155,000 $155,000
Korean 1 $115,000 $115,000

Approval Rates

Total approvals of all applications
91.53%

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
81.52%

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 17,393 $3,403,605,000 $195,688

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 8,549 $1,879,645,000 $219,867
$1k-2k 3,538 $933,390,000 $263,819
$2k-3k 551 $163,725,000 $297,142
$3k-4k 229 $74,045,000 $323,341
$5k+ 76 $42,690,000 $561,711

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:Manufactured 1 $715,000 $715,000
Multifamily:Site-Built 8 $46,200,000 $5,775,000
Single Family (1-4 Units):Manufactured 89 $10,535,000 $118,371
Single Family (1-4 Units):Site-Built 17,295 $3,346,155,000 $193,475