Is Carrington Mortgage Services An Expensive Mortgage Lender?

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

Interest Rate: higher than average (+0.08%)
Loan Related Closing Costs: similar to average (+$137)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Carrington Mortgage Services originated 26411 mortgages, a national market share of 0.4%. It was most active in LA (0.7% market share), NV (0.6% market share), and GA (0.6% market share).

On average, Carrington Mortgage Services’s interest rates were higher than those of comparable mortgages at other lenders (+0.08%).1The comparable mortgages control for Carrington Mortgage Services’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 $6438, which was similar to those of comparable mortgages at $6301, with a difference of +$137. Overall, we estimate that Carrington Mortgage Services tends to be an expensive lender, with a cost-adjusted-rate difference of +0.09% 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 Carrington Mortgage Services.

Carrington Mortgage Services originated Conforming, FHA, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA, USDA and VA 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 Carrington Mortgage Services compared to other lenders

Conforming FHA USDA VA
Interest Rate Difference +0.07% +0.08% +0.21% +0.27%
Loan related Closing Cost Difference +$456 -$117 +$651 -$778
Cost Adjusted Rate Difference +0.12% +0.08% +0.29% +0.21%

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

Mortgage Refinancing from Carrington Mortgage Services compared to other lenders

Conforming FHA USDA VA
Interest Rate Difference +0.01% +0.08% +0.01% +0.08%
Loan Related Closing Cost Difference +$759 +$203 -$23 -$335
Cost Adjusted Rate Difference +0.09% +0.09% +0.00% +0.05%

Based on the table above, Carrington Mortgage Services is similar to other lenders for USDA mortgage refinance. It is more expensive than other lenders for Conforming, FHA and VA mortgage refinance.

Other information about Carrington Mortgage Services:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: ALISO VIEJO, CA, 92656
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Footnotes   [ + ]

1. The comparable mortgages control for Carrington Mortgage Services’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.