General Mortgage Lending Activity – Statewide and Among Top 50 Lenders
Among the state as a whole, the number of all home purchase mortgage applications in 1994 was 111,449. Nearly 82% of these applications resulted in originations (granting of mortgages.) A total of 91,065 originations were made. Before examining how variables were distributed throughout the state and for the top 50 financial institutions selected, by such characteristics as gender, race and income, it is important to first place overall mortgage activity in the context of the number of loans made by institutions.
Among the top 50 banks and mortgage companies considered, institution size and type varies. These variations may influence lending patterns, and do inform the subsequent data analysis. Institutions grouped by size or type, may or may not behave similarly—if they do not, their behavior warrants further investigation.
The following institutions among the top 50 originated more than 2,000 home purchase mortgage loans:
Table 1 - Large Lenders Among the Top 50|
Institution Name |
Institution Type |
All Applications |
All Originations |
% Originations |
|
State Total |
N/A |
111,449 |
91,065 |
81.71% |
|
Top 50 Total |
N/A |
40,484 |
33,586 |
82.96% |
|
Chase Manhattan Mortgage Corp. |
National Institution |
4,177 |
3,220 |
77.09% |
|
PNC Mortgage Corp. Of America |
National Institution |
3,558 |
2,968 |
83.42% |
|
First Fidelity Bank, NA |
National Institution |
3,433 |
2,621 |
76.35% |
|
Summit Bank |
State Inst./FDIC |
2,577 |
2,334 |
90.57% |
|
Collective Bank |
Savings/S&L |
2,584 |
2,247 |
86.96% |
|
Hudson City Savings Bank |
State Inst./FDIC |
2,454 |
2,157 |
87.90% |
|
United Jersey Bank |
State Inst./Fed. Reserve |
2,396 |
2,051 |
85.60% |
(From Appendix I, Table 26)
The percentage of applications originated among these lenders varies by 13.5% (77.1% to 90.6%). Six of the seven institutions have origination percentages above the statewide mean. All of the four "institution types" (as determined by regulating agency) are represented among the larger institutions.
The following institutions originated between 400 and 2,000 loans:
Table 2 - Medium Size Lenders Among the Top 50
|
Institution Name |
Institution Type |
All Applications |
All Originations |
% Originations |
|
State Total |
N/A |
111,449 |
91,065 |
81.7% |
|
Top 50 Total |
N/A |
40,484 |
33,586 |
82.9% |
|
Fleet Real Estate Funding |
State Inst./Fed. Reserve |
1,615 |
1,340 |
82.9% |
|
Meridian Mortgage Corporation |
State Inst./Fed. Reserve |
1,336 |
1,123 |
84.0% |
|
Provident Savings Bank |
State Inst./FDIC |
1,337 |
1,122 |
83.9% |
|
Chemical Bank New Jersey NA |
National Institution |
1,293 |
1,030 |
79.6% |
|
Sovereign Bank, F.S.B. |
Savings/S&L |
1,144 |
899 |
78.5% |
|
Natwest Home Mortgage Corp |
National Institution |
994 |
860 |
86.5% |
|
Chemical Residential Mortgage |
National Institution |
851 |
719 |
84.4% |
|
Ocean Federal Savings Bank |
Savings/S&L |
779 |
703 |
90.2% |
|
Midlantic Bank, NA |
National Institution |
854 |
657 |
76.9% |
|
World Savings And Loan Assoc. |
Savings/S&L |
672 |
551 |
81.9% |
|
Columbia Savings Bank, SLA |
Savings/S&L |
600 |
550 |
91.6% |
|
Bankers Savings |
State Inst./FDIC |
556 |
494 |
88.8% |
|
Anchor Savings Bank, F.S.B |
Savings/S&L |
561 |
457 |
81.4% |
|
Natwest Bank New Jersey |
National Institution |
507 |
420 |
82.8% |
(From Appendix I, Table 26)
There is a comparable range of origination percentages—14.7% (76.9% to 91.6%). Five of the fourteen institutions fall below the top 50 mean origination percentage.
The most noteworthy comparison between the two tables is the decrease in total originations between the top six and the next fourteen institutions. United Jersey Bank, which originated 2051 loans, is the sixth highest "originator" among the top 50. Fleet Real Estate, which originated 1340 loans, is seventh. The drop between the two "tiers" is 711 originations, or 35%.
The following institutions originated fewer than 400 loans:
Table 3 - Small Lenders Among the Top 50
|
Institution Name |
Institution Type |
All Applications |
All Originations |
% Originations |
|
State Total |
N/A |
111,449 |
91,065 |
81.7% |
|
Top 50 Total |
N/A |
40,484 |
33,586 |
82.9% |
|
First Dewitt Bank |
Savings/S&L |
404 |
375 |
92.8% |
|
Valley National Bank |
National Institution |
407 |
323 |
79.3% |
|
Central Jersey Savings Bank |
Savings/S&L |
330 |
269 |
81.5% |
|
New Jersey National Bank |
National Institution |
391 |
238 |
60.8% |
|
Lakeland Savings Bank |
State Inst./FDIC |
258 |
238 |
92.2% |
|
Investors Savings Bank |
State Inst./FDIC |
254 |
214 |
84.2% |
|
First Savings Bank, SLA |
Savings/S&L |
224 |
200 |
89.2% |
|
First Union Mortgage Corp. |
State Inst./Fed. Reserve |
251 |
192 |
76.4% |
|
Trenton Savings Bank |
State Inst./FDIC |
200 |
191 |
95.5% |
|
Garden State Bank |
State Inst./FDIC |
223 |
186 |
83.4% |
|
South Jersey Savings And Loan |
Savings/S&L |
207 |
178 |
85.9% |
|
Central Jersey Bank & Trust Co. |
State Inst./FDIC |
200 |
178 |
89.0% |
|
First Home Savings Bank, F.S.B |
Savings/S&L |
194 |
172 |
88.6% |
|
Bank Of Mid-Jersey |
State Inst./Fed. Reserve |
200 |
171 |
85.5% |
|
Farmers & Mechanics Bank |
Savings/S&L |
191 |
166 |
86.9% |
|
Spencer Savings Bank, SLA |
Savings/S&L |
189 |
160 |
84.6% |
|
Commerce Bank NA |
National Institution |
237 |
156 |
65.8% |
|
Cape Savings Bank |
State Inst./FDIC |
213 |
153 |
71.8% |
|
New Jersey Savings Bank |
State Inst./FDIC |
150 |
135 |
90.0% |
|
Corestates Mortgage Services |
National Institution |
185 |
130 |
70.2% |
|
Manasquan Savings Bank |
State Inst./FDIC |
147 |
124 |
84.3% |
|
First Fidelity Urban Inves Corp. |
National Institution |
147 |
120 |
81.6% |
|
Roma Federal Savings Bank |
Savings/S&L |
134 |
118 |
88.0% |
|
Ocean City Home S & L Assoc. |
Savings/S&L |
129 |
117 |
90.7% |
|
Trust Company Of New Jersey |
State Inst./FDIC |
130 |
116 |
89.2% |
|
West Jersey Community Bank |
State Inst./Fed. Reserve |
175 |
114 |
65.1% |
|
Penn Federal Savings Bank |
Savings/S&L |
136 |
111 |
81.6% |
|
Monarch Savings Bank ,F.S.B |
Savings/S&L |
141 |
111 |
78.7% |
|
Minotola National Bank |
National Institution |
159 |
107 |
67.3% |
(From Appendix I, Table 26)
The twenty-nine lenders making fewer than 400 loans exhibit more variation in their origination percentages than do their larger peers. Five of the smaller institutions originated more than 90% of the applications they received. Four originated fewer than 70%. In general, these institutions are not clustered as tightly around the top fifty origination percentage mean as their larger peers are.
It is difficult to say whether the outliers among the smaller institutions in any category (originations, applications, etc.) are "good" or "bad" home purchase mortgage lenders, however. Single-year HMDA data analysis can be statistically inconclusive, especially for smaller institutions. Generalizations about institutional or market-wide practices among these institutions should be tempered. The fluctuation among ratios for some institutions may be dependent upon the "mortgage readiness" of a small number of applicants. Longitudinal analysis of specific institutions would provide more worthwhile insight into their behavior.
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