Is HomeStreet Bank An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at HomeStreet Bank with other lenders for mortgages with similar borrower characteristics:

Interest Rate: similar to average (-0.01%)
Loan Related Closing Costs: similar to average (+$108)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, HomeStreet Bank originated 16684 mortgages, a national market share of 0.3%. It was most active in WA (4.4% market share), HI (2.5% market share), and OR (2.0% market share).

On average, HomeStreet Bank’s interest rates were similar to those of comparable mortgages at other lenders (-0.01%).1The comparable mortgages control for HomeStreet Bank’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages. Its average total loan related closing cost was $6056, which was similar to those of comparable mortgages at $5948, with a difference of +$108. Overall, we estimate that HomeStreet Bank tends to be an average cost lender, with a cost-adjusted-rate difference of -0.01% compared to comparable mortgages at other lenders.2Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate. Nevertheless, we recommend comparing your rate and fees with at least a few other lenders before signing with HomeStreet Bank.

HomeStreet Bank originated Conforming, FHA, Jumbo, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA, Jumbo and VA mortgages for refinances. We breakdown its interest rate and total loan related closing cost on by each of the mortgage types it originated below:

Home Purchase Mortgages from HomeStreet Bank compared to other lenders

Conforming FHA Jumbo USDA VA
Interest Rate Difference -0.03% -0.04% +0.12% -0.08% +0.00%
Loan related Closing Cost Difference +$93 +$159 +$370 +$396 +$547
Cost Adjusted Rate Difference -0.03% -0.03% +0.13% -0.05% +0.03%

Based on the table above, HomeStreet Bank is cheap for USDA purchase mortgages. It is similar to other lenders for Conforming, FHA and VA purchase mortgages. It is more expensive than other lenders for Jumbo purchase mortgages.

Mortgage Refinancing from HomeStreet Bank compared to other lenders

Conforming FHA Jumbo VA
Interest Rate Difference +0.01% +0.09% +0.11% +0.08%
Loan Related Closing Cost Difference +$24 -$67 -$456 -$953
Cost Adjusted Rate Difference +0.02% +0.08% +0.10% +0.02%

Based on the table above, HomeStreet Bank is similar to other lenders for Conforming and VA mortgage refinance. It is more expensive than other lenders for FHA and Jumbo mortgage refinance.

Other information about HomeStreet Bank:

Regulator: Federal Deposit Insurance Corporation (FDIC) 
Top holder: HOMESTREET, INC.
Registered city and state: Seattle, WA, 98101-2326
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Footnotes   [ + ]

1. The comparable mortgages control for HomeStreet Bank’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages.
2. Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate.