Is City Lending Inc An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at City Lending Inc with other lenders for mortgages with similar borrower characteristics:

Interest Rate: higher than average (+0.22%)
Loan Related Closing Costs: higher than average (+$675)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, City Lending Inc originated 566 mortgages, a national market share of 0.0%. It was most active in MD (0.2% market share), VA (0.2% market share), and DC (0.1% market share).

On average, City Lending Inc’s interest rates were higher than those of comparable mortgages at other lenders (+0.22%).1The comparable mortgages control for City Lending Inc’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 $7891, which was higher than those of comparable mortgages at $7216, with a difference of +$675. Overall, we estimate that City Lending Inc tends to be an expensive lender, with a cost-adjusted-rate difference of +0.26% 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 City Lending Inc.

City Lending Inc originated Conforming and FHA mortgages for new home purchases. It also originated Conforming 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 City Lending Inc compared to other lenders

Conforming FHA
Interest Rate Difference +0.17% +0.27%
Loan related Closing Cost Difference +$617 +$461
Cost Adjusted Rate Difference +0.20% +0.30%

Based on the table above, City Lending Inc is more expensive than other lenders for Conforming and FHA purchase mortgages.

Mortgage Refinancing from City Lending Inc compared to other lenders

Conforming
Interest Rate Difference +0.08%
Loan Related Closing Cost Difference +$2105
Cost Adjusted Rate Difference +0.23%

Based on the table above, City Lending Inc is more expensive than other lenders for Conforming mortgage refinance.

Other information about City Lending Inc:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Registered city and state: Vienna, VA, 22182

Footnotes   [ + ]

1. The comparable mortgages control for City Lending Inc’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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