Webster Bank, N.a.

Waterbury, CT 06702

LEI: WV0OVGBTLUP1XIUJE722

Tax ID: 06-0273620

2019 Data | 2018 Data


Overview

Webster Bank, N.a. is a small mortgage company specializing in Home Purchase and Refi loans. Webster Bank, N.a. 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.) Their top markets include Boston, Cambridge, Bridgeport, Hartford, and New York among others. They have an 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. Webster Bank, N.a. is typically a low fee lendor.


Originations

6,896

Origination Dollar Volume (All Markets)

$2,151,530,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 6,860 $2,143,820,000 $312,510
FHA 32 $6,700,000 $209,375
VA 4 $1,010,000 $252,500

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 1,876 $996,150,000 $530,997
Home Improvement 859 $93,285,000 $108,597
Other 834 $100,090,000 $120,012
Refi 3,013 $842,235,000 $279,534
Cash Out Refi 314 $119,770,000 $381,433

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
BOSTON, MA 777 $388,145,000 $499,543
CAMBRIDGE-NEWTON-FRAMINGHAM, MA 620 $319,110,000 $514,694
BRIDGEPORT-STAMFORD-NORWALK, CT 824 $313,820,000 $380,850
HARTFORD-EAST HARTFORD-MIDDLETOWN, CT 1,476 $228,450,000 $154,776
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 404 $212,810,000 $526,757
PROVIDENCE-WARWICK, RI-MA 936 $186,260,000 $198,996
NEW HAVEN-MILFORD, CT 978 $163,710,000 $167,393
NASSAU COUNTY-SUFFOLK COUNTY, NY 86 $89,670,000 $1,042,674
Outside of Metro Areas 411 $71,175,000 $173,175
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 6 $37,080,000 $6,180,000
WORCESTER, MA-CT 85 $32,215,000 $379,000
MANCHESTER-NASHUA, NH 3 $22,255,000 $7,418,333
NORWICH-NEW LONDON, CT 65 $16,235,000 $249,769
BARNSTABLE TOWN, MA 40 $13,230,000 $330,750
NEW BRUNSWICK-LAKEWOOD, NJ 20 $8,450,000 $422,500
NEWARK, NJ-PA 10 $6,170,000 $617,000
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY 25 $5,895,000 $235,800
ROCKINGHAM COUNTY-STRAFFORD COUNTY, NH 10 $5,750,000 $575,000
SPRINGFIELD, MA 42 $5,600,000 $133,333
PORTLAND-SOUTH PORTLAND, ME 7 $4,695,000 $670,714
PHILADELPHIA, PA 6 $3,380,000 $563,333
TRENTON-PRINCETON, NJ 5 $2,895,000 $579,000
CAMDEN, NJ 6 $2,560,000 $426,667
CHARLESTON-NORTH CHARLESTON, SC 1 $1,715,000 $1,715,000
NORTH PORT-SARASOTA-BRADENTON, FL 5 $935,000 $187,000
PITTSFIELD, MA 4 $860,000 $215,000
ALBANY-SCHENECTADY-TROY, NY 3 $805,000 $268,333
MIAMI-MIAMI BEACH-KENDALL, FL 3 $795,000 $265,000
PUNTA GORDA, FL 2 $790,000 $395,000
MILWAUKEE-WAUKESHA, WI 3 $675,000 $225,000
KINGSTON, NY 2 $570,000 $285,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 2 $530,000 $265,000
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 3 $425,000 $141,667
PORT ST. LUCIE, FL 2 $420,000 $210,000
CAPE CORAL-FORT MYERS, FL 2 $400,000 $200,000
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 2 $390,000 $195,000
LAKELAND-WINTER HAVEN, FL 3 $385,000 $128,333
MADISON, WI 1 $305,000 $305,000
ORLANDO-KISSIMMEE-SANFORD, FL 3 $285,000 $95,000
PENSACOLA-FERRY PASS-BRENT, FL 1 $275,000 $275,000
NAPLES-MARCO ISLAND, FL 1 $215,000 $215,000
CHARLOTTE-CONCORD-GASTONIA, NC-SC 1 $195,000 $195,000
ROCHESTER, NY 2 $190,000 $95,000
BUFFALO-CHEEKTOWAGA, NY 2 $190,000 $95,000
WILMINGTON, NC 1 $185,000 $185,000
JACKSONVILLE, FL 1 $155,000 $155,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 2 $150,000 $75,000
BINGHAMTON, NY 2 $130,000 $65,000

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% 9 $3,495,000 $388,333
2.5-3% 155 $62,645,000 $404,161
3-4% 1,968 $1,069,360,000 $543,374
4-5% 1,568 $595,200,000 $379,592
5-6% 2,066 $327,510,000 $158,524
6-7% 899 $81,475,000 $90,628
7-8% 215 $11,295,000 $52,535
Over 8% 16 $550,000 $34,375

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,855 $108,915,000 $58,714
$100k-200k 1,832 $254,800,000 $139,083
$200k-400k 1,557 $409,105,000 $262,752
$400k-600k 773 $394,805,000 $510,744
$600k-1000k 732 $540,180,000 $737,951
$Over $1MM 147 $443,725,000 $3,018,537

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% 1,531 $273,185,000 $178,436
40-60% 921 $344,685,000 $374,251
60-80% 1,930 $915,120,000 $474,155
80-100% 1,107 $475,735,000 $429,752
Over 100% 37 $33,395,000 $902,568
Under 20% 1,370 $109,410,000 $79,861

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 1,322 $269,730,000 $204,032
$150k-250k 1,713 $573,925,000 $335,041
$50k-75k 837 $105,115,000 $125,585
$50k-or less 504 $45,520,000 $90,317
$75k-100k 839 $122,475,000 $145,977
$Over $250k 1,358 $667,410,000 $491,465

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 5,583 $1,455,975,000 $260,787
Not applicable 139 $317,215,000 $2,282,122
Not provided 682 $228,240,000 $334,663
Asian 319 $117,605,000 $368,668
Black 140 $27,010,000 $192,929
American Indian 29 $4,705,000 $162,241
Native Hawaiian 4 $780,000 $195,000

Approval Rates

Total approvals of all applications
76.17%

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
73.99%

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 6,896 $2,151,530,000 $311,997

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 2,372 $700,240,000 $295,211
$1k-2k 846 $583,510,000 $689,728
$2k-3k 14 $8,600,000 $614,286
$3k-4k 6 $4,830,000 $805,000
$5k+ 6 $4,550,000 $758,333

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 61 $291,925,000 $4,785,656
Single Family (1-4 Units):Site-Built 6,835 $1,859,605,000 $272,071