Is Regions Bank An Expensive Mortgage Lender?

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

Interest Rate: similar to average (+0.04%)
Loan Related Closing Costs: lower than average (-$987)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Regions Bank originated 26433 mortgages, a national market share of 0.4%. It was most active in AL (5.4% market share), AR (3.2% market share), and MS (3.2% market share).

On average, Regions Bank’s interest rates were similar to those of comparable mortgages at other lenders (+0.04%).1The comparable mortgages control for Regions Bank’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 $2491, which was lower than those of comparable mortgages at $3478, with a difference of -$987. Overall, we estimate that Regions Bank tends to be an cheap 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. Nevertheless, we recommend comparing your rate and fees with at least a few other lenders before signing with Regions Bank.

Regions Bank originated Conforming, FHA, Jumbo, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA, Jumbo 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 Regions Bank compared to other lenders

Conforming FHA Jumbo USDA VA
Interest Rate Difference +0.03% -0.11% -0.04% +0.06% -0.02%
Loan related Closing Cost Difference -$889 -$1516 -$1638 -$1018 -$505
Cost Adjusted Rate Difference -0.06% -0.29% -0.09% -0.11% -0.07%

Based on the table above, Regions Bank is cheap for Conforming, FHA, Jumbo, USDA and VA purchase mortgages.

Mortgage Refinancing from Regions Bank compared to other lenders

Conforming FHA Jumbo VA
Interest Rate Difference +0.12% +0.07% -0.01% +0.08%
Loan Related Closing Cost Difference -$980 -$250 -$1232 +$118
Cost Adjusted Rate Difference -0.11% +0.03% -0.04% +0.10%

Based on the table above, Regions Bank is cheap for Conforming mortgage refinance. It is similar to other lenders for FHA and Jumbo mortgage refinance. It is more expensive than other lenders for VA mortgage refinance.

Other information about Regions Bank:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: REGIONS FINANCIAL CORPORATION
Registered city and state: BIRMINGHAM, AL, 35203

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Footnotes   [ + ]

1. The comparable mortgages control for Regions Bank’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.