Is American Mortgage Bank An Expensive Mortgage Lender?

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

Interest Rate: similar to average (+0.03%)
Loan Related Closing Costs: higher than average (+$809)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, American Mortgage Bank originated 425 mortgages, a national market share of 0.0%. It was most active in OK (0.3% market share), SC (0.0% market share), and KS (0.0% market share).

On average, American Mortgage Bank’s interest rates were similar to those of comparable mortgages at other lenders (+0.03%).1The comparable mortgages control for American Mortgage 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 $6631, which was higher than those of comparable mortgages at $5822, with a difference of +$809. Overall, we estimate that American Mortgage Bank tends to be an expensive lender, with a cost-adjusted-rate difference of +0.12% 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. Therefore, we recommend comparing your rate and fees with at least a few other lenders before signing with American Mortgage Bank.

American Mortgage Bank originated Conforming, FHA and VA mortgages for new home purchases. It also originated Conforming and FHA 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 American Mortgage Bank compared to other lenders

Conforming FHA VA
Interest Rate Difference +0.09% +0.00% +0.16%
Loan related Closing Cost Difference +$764 +$799 +$141
Cost Adjusted Rate Difference +0.16% +0.10% +0.19%

Based on the table above, American Mortgage Bank is more expensive than other lenders for Conforming, FHA and VA purchase mortgages.

Mortgage Refinancing from American Mortgage Bank compared to other lenders

Conforming FHA
Interest Rate Difference -0.02% +0.03%
Loan Related Closing Cost Difference +$1679 +$179
Cost Adjusted Rate Difference +0.14% +0.05%

Based on the table above, American Mortgage Bank is more expensive than other lenders for Conforming and FHA mortgage refinance.

Other information about American Mortgage Bank:

Regulator: Federal Deposit Insurance Corporation (FDIC) 
Top holder: BLUECHIP BANCSHARES, LLC
Registered city and state: Oklahoma City, OK, 73116

Footnotes   [ + ]

1. The comparable mortgages control for American Mortgage 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.

Leave a Comment