Is UBS Bank USA An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.11%)
Loan Related Closing Costs: lower than average (-$611)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, UBS Bank USA originated 3100 mortgages, a national market share of 0.0%. It was most active in DC (0.2% market share), NY (0.1% market share), and CT (0.1% market share).

On average, UBS Bank USA’s interest rates were lower than those of comparable mortgages at other lenders (-0.11%).1The comparable mortgages control for UBS Bank USA’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 $4786, which was lower than those of comparable mortgages at $5396, with a difference of -$611. Overall, we estimate that UBS Bank USA tends to be an cheap lender, with a cost-adjusted-rate difference of -0.14% 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 UBS Bank USA.

UBS Bank USA originated Conforming and Jumbo mortgages for new home purchases. It also originated Conforming 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 UBS Bank USA compared to other lenders

Conforming Jumbo
Interest Rate Difference -0.12% -0.13%
Loan related Closing Cost Difference -$339 -$661
Cost Adjusted Rate Difference -0.14% -0.16%

Based on the table above, UBS Bank USA is cheap for Conforming and Jumbo purchase mortgages.

Mortgage Refinancing from UBS Bank USA compared to other lenders

Conforming Jumbo
Interest Rate Difference -0.06% -0.10%
Loan Related Closing Cost Difference -$707 -$1254
Cost Adjusted Rate Difference -0.09% -0.13%

Based on the table above, UBS Bank USA is cheap for Conforming and Jumbo mortgage refinance.

Other information about UBS Bank USA:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: UBS GROUP AG
Registered city and state: SALT LAKE CITY, UT, 84111

Footnotes   [ + ]

1. The comparable mortgages control for UBS Bank USA’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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