Is NewDay Financial LLC dba NewDay USA An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at NewDay Financial LLC dba NewDay USA with other lenders for mortgages with similar borrower characteristics:

Interest Rate: higher than average (+0.24%)
Loan Related Closing Costs: higher than average (+$1110)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, NewDay Financial LLC dba NewDay USA originated 9694 mortgages, a national market share of 0.2%. It was most active in MS (0.3% market share), AK (0.3% market share), and NV (0.3% market share).

On average, NewDay Financial LLC dba NewDay USA’s interest rates were higher than those of comparable mortgages at other lenders (+0.24%).1The comparable mortgages control for NewDay Financial LLC dba NewDay 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 $8587, which was higher than those of comparable mortgages at $7477, with a difference of +$1110. Overall, we estimate that NewDay Financial LLC dba NewDay USA tends to be an expensive lender, with a cost-adjusted-rate difference of +0.32% 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 NewDay Financial LLC dba NewDay USA.

NewDay Financial LLC dba NewDay USA originated VA mortgages for new home purchases. It also originated FHA 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 NewDay Financial LLC dba NewDay USA compared to other lenders

VA
Interest Rate Difference +0.18%
Loan related Closing Cost Difference +$46
Cost Adjusted Rate Difference +0.18%

Based on the table above, NewDay Financial LLC dba NewDay USA is more expensive than other lenders for VA purchase mortgages.

Mortgage Refinancing from NewDay Financial LLC dba NewDay USA compared to other lenders

FHA VA
Interest Rate Difference +0.30% +0.24%
Loan Related Closing Cost Difference +$2693 +$1142
Cost Adjusted Rate Difference +0.51% +0.33%

Based on the table above, NewDay Financial LLC dba NewDay USA is more expensive than other lenders for FHA and VA mortgage refinance.

Other information about NewDay Financial LLC dba NewDay USA:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Fulton, MD, 20759
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Footnotes   [ + ]

1. The comparable mortgages control for NewDay Financial LLC dba NewDay 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.