Is Direct Mortgage Corp An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.08%)
Loan Related Closing Costs: higher than average (+$2127)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, Direct Mortgage Corp originated 985 mortgages, a national market share of 0.0%. It was most active in UT (0.6% market share), WY (0.0% market share), and CA (0.0% market share).

On average, Direct Mortgage Corp’s interest rates were lower than those of comparable mortgages at other lenders (-0.08%).3The comparable mortgages control for Direct 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 $7805, which was higher than those of comparable mortgages at $5678, with a difference of +$2127. Overall, we estimate that Direct Mortgage Corp tends to be an average cost lender, with a cost-adjusted-rate difference of +0.05% compared to comparable mortgages at other lenders.4Cost 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 Direct Mortgage Corp.

Direct Mortgage Corp originated Conforming, FHA and VA mortgages for new home purchases. It also originated Conforming and FHA 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 Direct Mortgage Corp compared to other lenders

Conforming FHA VA
Interest Rate Difference -0.05% -0.21% -0.15%
Loan related Closing Cost Difference +$1742 +$1559 +$1987
Cost Adjusted Rate Difference +0.05% -0.12% -0.01%

Based on the table above, Direct Mortgage Corp is cheap for FHA purchase mortgages. It is similar to other lenders for Conforming and VA purchase mortgages.

Mortgage Refinancing from Direct Mortgage Corp compared to other lenders

Conforming FHA
Interest Rate Difference +0.02% -0.27%
Loan Related Closing Cost Difference +$2990 +$3769
Cost Adjusted Rate Difference +0.20% -0.03%

Based on the table above, Direct Mortgage Corp is similar to other lenders for FHA mortgage refinance. It is more expensive than other lenders for Conforming mortgage refinance.

Other information about Direct Mortgage Corp:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Midvale, UT, 84047
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Footnotes

1, 3 The comparable mortgages control for Direct 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, 4 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.