Is Provident Funding Associates An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.16%)
Loan Related Closing Costs: lower than average (-$479)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Provident Funding Associates originated 20676 mortgages, a national market share of 0.3%. It was most active in UT (2.0% market share), OR (0.8% market share), and CO (0.8% market share).

On average, Provident Funding Associates’s interest rates were lower than those of comparable mortgages at other lenders (-0.16%).1The comparable mortgages control for Provident Funding Associates’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 $3760, which was lower than those of comparable mortgages at $4238, with a difference of -$479. Overall, we estimate that Provident Funding Associates tends to be an cheap lender, with a cost-adjusted-rate difference of -0.19% 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 Provident Funding Associates.

Provident Funding Associates originated Conforming, FHA and Jumbo mortgages for new home purchases. It also originated Conforming, FHA and Jumbo 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 Provident Funding Associates compared to other lenders

Conforming FHA Jumbo
Interest Rate Difference -0.16% -0.41% -0.01%
Loan related Closing Cost Difference -$246 -$450 +$429
Cost Adjusted Rate Difference -0.17% -0.44% -0.01%

Based on the table above, Provident Funding Associates is cheap for Conforming and FHA purchase mortgages. It is similar to other lenders for Jumbo purchase mortgages.

Mortgage Refinancing from Provident Funding Associates compared to other lenders

Conforming FHA Jumbo
Interest Rate Difference -0.15% -0.34% -0.15%
Loan Related Closing Cost Difference -$810 -$711 -$886
Cost Adjusted Rate Difference -0.20% -0.39% -0.17%

Based on the table above, Provident Funding Associates is cheap for Conforming, FHA and Jumbo mortgage refinance.

Other information about Provident Funding Associates:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Burlingame, CA, 94010
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Footnotes   [ + ]

1. The comparable mortgages control for Provident Funding Associates’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.