Is Fair Way Lending An Expensive Mortgage Lender?

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

Interest Rate: higher than average (+0.07%)
Loan Related Closing Costs: higher than average (+$362)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Fair Way Lending originated 434 mortgages, a national market share of 0.0%. It was most active in IN (0.2% market share), KY (0.1% market share), and FL (0.0% market share).

On average, Fair Way Lending’s interest rates were higher than those of comparable mortgages at other lenders (+0.07%).1The comparable mortgages control for Fair Way Lending’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 $4698, which was higher than those of comparable mortgages at $4336, with a difference of +$362. Overall, we estimate that Fair Way Lending tends to be an expensive lender, with a cost-adjusted-rate difference of +0.11% 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 Fair Way Lending.

Fair Way Lending originated Conforming, FHA and USDA mortgages for new home purchases. 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 Fair Way Lending compared to other lenders

Conforming FHA USDA
Interest Rate Difference +0.12% +0.04% +0.06%
Loan related Closing Cost Difference +$580 +$156 +$742
Cost Adjusted Rate Difference +0.20% +0.06% +0.15%

Based on the table above, Fair Way Lending is more expensive than other lenders for Conforming, FHA and USDA purchase mortgages.

Other information about Fair Way Lending:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: LOUISVILLE, KY, 40243
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Footnotes   [ + ]

1. The comparable mortgages control for Fair Way Lending’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.