Pgim Real Estate Finance, Llc

Newark, NJ 07102

LEI: B2S31CFVSWTN3FR00Q90

Tax ID: 22-3529425

2019 Data | 2018 Data


Overview

Pgim Real Estate Finance, Llc is a small mortgage company specializing in Home Purchase and Refi loans. Pgim Real Estate Finance, Llc has a high proportion of conventional loans. Their top markets include Seattle, Los Angeles, Baltimore, San Francisco, and Atlanta among others. They have an above average approval rate for mortages when compared nationally -- and they have an average pick rate when compared to the same sample of other lendors. Pgim Real Estate Finance, Llc is typically a lendor.


Originations

119

Origination Dollar Volume (All Markets)

$4,768,075,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 119 $4,768,075,000 $40,067,857

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 59 $2,461,065,000 $41,712,966
Home Improvement 5 $54,475,000 $10,895,000
Refi 48 $2,028,110,000 $42,252,292
Cash Out Refi 7 $224,425,000 $32,060,714

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
SEATTLE-BELLEVUE-KENT, WA 13 $555,815,000 $42,755,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 6 $349,600,000 $58,266,667
BALTIMORE-COLUMBIA-TOWSON, MD 2 $330,160,000 $165,080,000
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA 2 $285,250,000 $142,625,000
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 13 $257,365,000 $19,797,308
BUFFALO-CHEEKTOWAGA, NY 2 $255,690,000 $127,845,000
ANAHEIM-SANTA ANA-IRVINE, CA 2 $237,010,000 $118,505,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC 7 $199,695,000 $28,527,857
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 3 $186,265,000 $62,088,333
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 5 $169,525,000 $33,905,000
LAS VEGAS-HENDERSON-PARADISE, NV 2 $137,780,000 $68,890,000
URBAN HONOLULU, HI 1 $129,005,000 $129,005,000
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 5 $126,305,000 $25,261,000
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 4 $123,950,000 $30,987,500
DALLAS-PLANO-IRVING, TX 5 $123,235,000 $24,647,000
CHICAGO-NAPERVILLE-EVANSTON, IL 3 $119,015,000 $39,671,667
RALEIGH-CARY, NC 3 $112,285,000 $37,428,333
CAMBRIDGE-NEWTON-FRAMINGHAM, MA 1 $105,005,000 $105,005,000
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 1 $87,005,000 $87,005,000
ROCHESTER, NY 6 $78,890,000 $13,148,333
DENVER-AURORA-LAKEWOOD, CO 1 $75,005,000 $75,005,000
OAKLAND-BERKELEY-LIVERMORE, CA 2 $74,010,000 $37,005,000
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 1 $64,005,000 $64,005,000
NEW BRUNSWICK-LAKEWOOD, NJ 2 $60,010,000 $30,005,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI 1 $51,005,000 $51,005,000
SYRACUSE, NY 4 $45,440,000 $11,360,000
SOUTH BEND-MISHAWAKA, IN-MI 1 $42,505,000 $42,505,000
TUCSON, AZ 3 $42,125,000 $14,041,667
JACKSONVILLE, FL 1 $36,655,000 $36,655,000
ORLANDO-KISSIMMEE-SANFORD, FL 1 $36,505,000 $36,505,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 1 $34,505,000 $34,505,000
PHOENIX-MESA-CHANDLER, AZ 3 $33,475,000 $11,158,333
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 2 $29,060,000 $14,530,000
ELKHART-GOSHEN, IN 1 $24,505,000 $24,505,000
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY 1 $22,505,000 $22,505,000
FORT WORTH-ARLINGTON-GRAPEVINE, TX 1 $22,005,000 $22,005,000
FORT WAYNE, IN 1 $20,505,000 $20,505,000
HARRISBURG-CARLISLE, PA 1 $20,125,000 $20,125,000
SANTA MARIA-SANTA BARBARA, CA 1 $17,905,000 $17,905,000
COLUMBIA, SC 1 $17,895,000 $17,895,000
AUSTIN-ROUND ROCK-GEORGETOWN, TX 1 $14,825,000 $14,825,000
LANSING-EAST LANSING, MI 1 $7,505,000 $7,505,000
WARREN-TROY-FARMINGTON HILLS, MI 1 $7,145,000 $7,145,000

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
3-4% 64 $2,957,120,000 $46,205,000
4-5% 41 $1,747,865,000 $42,630,854
5-6% 3 $44,035,000 $14,678,333
7-8% 3 $4,215,000 $1,405,000
Over 8% 8 $14,840,000 $1,855,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$600k-1000k 3 $2,685,000 $895,000
$Over $1MM 116 $4,765,390,000 $41,080,948

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% 8 $349,420,000 $43,677,500
40-60% 12 $1,094,070,000 $91,172,500
60-80% 83 $3,178,455,000 $38,294,639
Under 20% 16 $146,130,000 $9,133,125

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

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
Not applicable 119 $4,768,075,000 $40,067,857

Approval Rates

Total approvals of all applications
98.68%

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
92.34%

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 119 $4,768,075,000 $40,067,857

Origination Fees

Origination Fee Originations Total Value Average Loan

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 119 $4,768,075,000 $40,067,857