Signature Bank

New York, NY 10017

LEI: VLP5AP0XK2GM6GKD1007

Tax ID: 13-4149421

2019 Data | 2018 Data


Overview

Signature Bank is a small mortgage company specializing in Home Purchase and Refi loans. Signature Bank has a high proportion of conventional loans. Their top markets include New York, Newark, Bridgeport, New Brunswick, and Los Angeles among others. They have an above average approval rate for mortages when compared nationally -- and they have an above average pick rate when compared to the same sample of other lendors. Signature Bank is typically a lendor.


Originations

337

Origination Dollar Volume (All Markets)

$1,843,495,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 337 $1,843,495,000 $5,470,312

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 61 $425,715,000 $6,978,934
Home Improvement 4 $5,520,000 $1,380,000
Refi 250 $1,327,280,000 $5,309,120
Cash Out Refi 22 $84,980,000 $3,862,727

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 318 $1,777,380,000 $5,589,245
NEWARK, NJ-PA 9 $35,295,000 $3,921,667
BRIDGEPORT-STAMFORD-NORWALK, CT 2 $17,010,000 $8,505,000
NEW BRUNSWICK-LAKEWOOD, NJ 1 $5,645,000 $5,645,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 1 $3,505,000 $3,505,000
NASSAU COUNTY-SUFFOLK COUNTY, NY 5 $2,945,000 $589,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 1 $1,715,000 $1,715,000

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% 92 $590,840,000 $6,422,174
4-5% 235 $1,227,715,000 $5,224,319
5-6% 9 $22,835,000 $2,537,222
6-7% 1 $2,105,000 $2,105,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$200k-400k 1 $315,000 $315,000
$400k-600k 9 $4,425,000 $491,667
$600k-1000k 17 $14,055,000 $826,765
$Over $1MM 310 $1,824,700,000 $5,886,129

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% 25 $92,015,000 $3,680,600
40-60% 89 $534,905,000 $6,010,169
60-80% 194 $1,153,470,000 $5,945,722
80-100% 2 $6,480,000 $3,240,000
Over 100% 1 $1,505,000 $1,505,000
Under 20% 26 $55,120,000 $2,120,000

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 337 $1,843,495,000 $5,470,312

Approval Rates

Total approvals of all applications
99.78%

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
100.00%

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 337 $1,843,495,000 $5,470,312

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 305 $1,784,855,000 $5,851,984
Single Family (1-4 Units):Site-Built 32 $58,640,000 $1,832,500