Valley National Bank

Wayne, NJ 07470

LEI: KI0VI4JRMCIJ329YTN75

Tax ID: 22-1186387

2019 Data | 2018 Data


Overview

Valley National Bank is a small mortgage company specializing in Home Purchase and Cash Out Refi loans. Valley National Bank 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 New York, Nassau County, New Brunswick, Newark, and Tampa 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. Valley National Bank is typically a low fee lendor.


Originations

4,949

Origination Dollar Volume (All Markets)

$2,618,235,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 4,782 $2,568,970,000 $537,217
FHA 141 $41,335,000 $293,156
VA 22 $6,950,000 $315,909
USDA 4 $980,000 $245,000

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

Loan Reason Originations Total Value Average Loan
Home Purchase 2,310 $1,108,660,000 $479,939
Home Improvement 467 $92,525,000 $198,126
Other 429 $122,955,000 $286,608
Refi 769 $425,675,000 $553,544
Cash Out Refi 974 $868,420,000 $891,602

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
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 1,260 $943,510,000 $748,817
NASSAU COUNTY-SUFFOLK COUNTY, NY 591 $289,005,000 $489,010
NEW BRUNSWICK-LAKEWOOD, NJ 570 $267,450,000 $469,211
NEWARK, NJ-PA 753 $203,055,000 $269,661
TAMPA-ST. PETERSBURG-CLEARWATER, FL 322 $167,530,000 $520,280
OCEAN CITY, NJ 115 $76,225,000 $662,826
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 131 $46,765,000 $356,985
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY 178 $43,650,000 $245,225
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 3 $39,045,000 $13,015,000
WILMINGTON, DE-MD-NJ 3 $38,125,000 $12,708,333
NORTH PORT-SARASOTA-BRADENTON, FL 38 $36,080,000 $949,474
MIAMI-MIAMI BEACH-KENDALL, FL 60 $35,090,000 $584,833
NAPLES-MARCO ISLAND, FL 78 $33,390,000 $428,077
ORLANDO-KISSIMMEE-SANFORD, FL 55 $32,605,000 $592,818
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 73 $27,955,000 $382,945
Outside of Metro Areas 74 $26,150,000 $353,378
CAPE CORAL-FORT MYERS, FL 81 $25,295,000 $312,284
BALTIMORE-COLUMBIA-TOWSON, MD 7 $22,495,000 $3,213,571
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ 54 $20,430,000 $378,333
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 28 $15,250,000 $544,643
ATLANTIC CITY-HAMMONTON, NJ 30 $13,980,000 $466,000
HARTFORD-EAST HARTFORD-MIDDLETOWN, CT 2 $12,800,000 $6,400,000
OCALA, FL 6 $12,200,000 $2,033,333
BRIDGEPORT-STAMFORD-NORWALK, CT 20 $11,100,000 $555,000
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 3 $10,915,000 $3,638,333
YORK-HANOVER, PA 1 $10,755,000 $10,755,000
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 10 $9,960,000 $996,000
PHILADELPHIA, PA 24 $9,310,000 $387,917
CAMDEN, NJ 26 $8,660,000 $333,077
TRENTON-PRINCETON, NJ 32 $8,210,000 $256,563
PALM BAY-MELBOURNE-TITUSVILLE, FL 57 $7,895,000 $138,509
LAKELAND-WINTER HAVEN, FL 12 $7,730,000 $644,167
KINGSTON, NY 34 $7,440,000 $218,824
COLUMBUS, GA-AL 1 $7,405,000 $7,405,000
BIRMINGHAM-HOOVER, AL 27 $6,615,000 $245,000
JACKSONVILLE, FL 16 $6,290,000 $393,125
THE VILLAGES, FL 2 $5,760,000 $2,880,000
HOMOSASSA SPRINGS, FL 3 $5,655,000 $1,885,000
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 8 $5,230,000 $653,750
JACKSON, MS 1 $5,005,000 $5,005,000
ANAHEIM-SANTA ANA-IRVINE, CA 3 $4,105,000 $1,368,333
LOS ANGELES-LONG BEACH-GLENDALE, CA 4 $3,640,000 $910,000
TALLAHASSEE, FL 2 $3,170,000 $1,585,000
SEBASTIAN-VERO BEACH, FL 15 $2,855,000 $190,333
CINCINNATI, OH-KY-IN 5 $2,585,000 $517,000
COLUMBIA, SC 1 $2,295,000 $2,295,000
MONTGOMERY, AL 16 $2,210,000 $138,125
ROCHESTER, NY 18 $2,200,000 $122,222
PORT ST. LUCIE, FL 10 $2,170,000 $217,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC 5 $2,095,000 $419,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 4 $1,950,000 $487,500
PROVIDENCE-WARWICK, RI-MA 5 $1,735,000 $347,000
AUBURN-OPELIKA, AL 7 $1,635,000 $233,571
GAINESVILLE, FL 1 $1,625,000 $1,625,000
PANAMA CITY, FL 1 $1,555,000 $1,555,000
PENSACOLA-FERRY PASS-BRENT, FL 2 $1,360,000 $680,000
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 2 $1,200,000 $600,000
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 4 $1,160,000 $290,000
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 1 $1,135,000 $1,135,000
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 3 $1,115,000 $371,667
BARNSTABLE TOWN, MA 1 $1,005,000 $1,005,000
DALLAS-PLANO-IRVING, TX 2 $900,000 $450,000
BOSTON, MA 2 $890,000 $445,000
AUSTIN-ROUND ROCK-GEORGETOWN, TX 1 $815,000 $815,000
RALEIGH-CARY, NC 3 $755,000 $251,667
ALBANY-SCHENECTADY-TROY, NY 3 $695,000 $231,667
DAPHNE-FAIRHOPE-FOLEY, AL 3 $645,000 $215,000
STATE COLLEGE, PA 1 $595,000 $595,000
GREENVILLE-ANDERSON, SC 1 $545,000 $545,000
EAST STROUDSBURG, PA 3 $535,000 $178,333
PUNTA GORDA, FL 3 $535,000 $178,333
SEBRING-AVON PARK, FL 2 $510,000 $255,000
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 1 $485,000 $485,000
PITTSBURGH, PA 1 $415,000 $415,000
RICHMOND, VA 1 $415,000 $415,000
HARRISBURG-CARLISLE, PA 1 $405,000 $405,000
CHARLESTON-NORTH CHARLESTON, SC 1 $355,000 $355,000
SALISBURY, MD-DE 1 $355,000 $355,000
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 1 $345,000 $345,000
DURHAM-CHAPEL HILL, NC 1 $335,000 $335,000
ANNISTON-OXFORD, AL 2 $330,000 $165,000
ST. LOUIS, MO-IL 1 $315,000 $315,000
PHOENIX-MESA-CHANDLER, AZ 1 $265,000 $265,000
NEW HAVEN-MILFORD, CT 2 $230,000 $115,000
OAKLAND-BERKELEY-LIVERMORE, CA 1 $205,000 $205,000
WILMINGTON, NC 1 $205,000 $205,000
LYNCHBURG, VA 1 $195,000 $195,000
BUFFALO-CHEEKTOWAGA, NY 1 $175,000 $175,000
LAS VEGAS-HENDERSON-PARADISE, NV 1 $175,000 $175,000
LANCASTER, PA 1 $175,000 $175,000
ROCKY MOUNT, NC 1 $155,000 $155,000
UTICA-ROME, NY 1 $145,000 $145,000
ITHACA, NY 1 $135,000 $135,000
CLEVELAND-ELYRIA, OH 1 $105,000 $105,000
SCRANTON--WILKES-BARRE, PA 1 $55,000 $55,000
NORWICH-NEW LONDON, CT 1 $25,000 $25,000

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% 242 $124,550,000 $514,669
3-4% 2,267 $1,564,565,000 $690,148
4-5% 1,720 $770,350,000 $447,878
5-6% 648 $142,290,000 $219,583
6-7% 68 $16,200,000 $238,235
7-8% 3 $225,000 $75,000
Over 8% 1 $55,000 $55,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 774 $43,410,000 $56,085
$100k-200k 1,016 $148,740,000 $146,398
$200k-400k 1,620 $460,650,000 $284,352
$400k-600k 704 $342,680,000 $486,761
$600k-1000k 461 $342,235,000 $742,375
$Over $1MM 374 $1,280,520,000 $3,423,850

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% 563 $129,735,000 $230,435
40-60% 635 $384,565,000 $605,614
60-80% 1,655 $1,289,285,000 $779,024
80-100% 1,286 $538,040,000 $418,383
Over 100% 19 $12,975,000 $682,895
Under 20% 790 $263,580,000 $333,646

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 1,003 $263,915,000 $263,126
$150k-250k 1,103 $377,915,000 $342,625
$50k-75k 605 $112,925,000 $186,653
$50k-or less 273 $34,525,000 $126,465
$75k-100k 656 $147,760,000 $225,244
$Over $250k 1,023 $761,785,000 $744,658

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 3,693 $1,344,935,000 $364,185
Not applicable 207 $897,555,000 $4,336,014
Not provided 507 $160,915,000 $317,387
Asian 346 $150,600,000 $435,260
Black 165 $52,105,000 $315,788
Asian Indian 15 $6,745,000 $449,667
American Indian 8 $2,780,000 $347,500
Chinese 3 $975,000 $325,000
Other Asian 2 $750,000 $375,000
Filipino 2 $560,000 $280,000
Native Hawaiian 1 $315,000 $315,000

Approval Rates

Total approvals of all applications
90.04%

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
75.54%

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 2 $620,000 $310,000
4750.0 1 $475,000 $475,000
NA 4,946 $2,617,140,000 $529,143

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 2,984 $1,366,950,000 $458,093
$1k-2k 322 $78,730,000 $244,503
$2k-3k 126 $45,400,000 $360,317
$3k-4k 73 $30,635,000 $419,658
$5k+ 43 $24,895,000 $578,953

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 31 $139,065,000 $4,485,968
Multifamily:Site-Built 126 $723,870,000 $5,745,000
Single Family (1-4 Units):Manufactured 56 $7,140,000 $127,500
Single Family (1-4 Units):Site-Built 4,736 $1,748,160,000 $369,122