Is Residential Mortgage Corp An Expensive Mortgage Lender?

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

Interest Rate: higher than average (+0.07%)
Loan Related Closing Costs: higher than average (+$514)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Residential Mortgage Corp originated 431 mortgages, a national market share of 0.0%. It was most active in NC (0.2% market share), SC (0.0% market share), and TN (0.0% market share).

On average, Residential Mortgage Corp’s interest rates were higher than those of comparable mortgages at other lenders (+0.07%).1The comparable mortgages control for Residential Mortgage Corp’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 $5629, which was higher than those of comparable mortgages at $5115, with a difference of +$514. Overall, we estimate that Residential Mortgage Corp 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 Residential Mortgage Corp.

Residential Mortgage Corp originated Conforming, FHA and VA 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 Residential Mortgage Corp compared to other lenders

Conforming FHA VA
Interest Rate Difference +0.05% -0.16% +0.13%
Loan related Closing Cost Difference -$190 -$138 +$858
Cost Adjusted Rate Difference +0.03% -0.17% +0.20%

Based on the table above, Residential Mortgage Corp is cheap for FHA purchase mortgages. It is similar to other lenders for Conforming purchase mortgages. It is more expensive than other lenders for VA purchase mortgages.

Other information about Residential Mortgage Corp:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: FAYETTEVILLE, NC, 28303

Footnotes   [ + ]

1. The comparable mortgages control for Residential Mortgage Corp’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.

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