Is Valley National Bank An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.11%)
Loan Related Closing Costs: lower than average (-$919)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Valley National Bank originated 4177 mortgages, a national market share of 0.1%. It was most active in NJ (1.2% market share), NY (0.6% market share), and FL (0.1% market share).

On average, Valley National Bank’s interest rates were lower than those of comparable mortgages at other lenders (-0.11%).1The comparable mortgages control for Valley National 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 $4535, which was lower than those of comparable mortgages at $5454, with a difference of -$919. Overall, we estimate that Valley National Bank tends to be an cheap lender, with a cost-adjusted-rate difference of -0.17% 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 Valley National Bank.

Valley National Bank originated Conforming, FHA and Jumbo mortgages for new home purchases. It also originated Conforming and Jumbo 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 Valley National Bank compared to other lenders

Conforming FHA Jumbo
Interest Rate Difference -0.12% -0.10% -0.11%
Loan related Closing Cost Difference -$634 -$843 -$628
Cost Adjusted Rate Difference -0.15% -0.15% -0.13%

Based on the table above, Valley National Bank is cheap for Conforming, FHA and Jumbo purchase mortgages.

Mortgage Refinancing from Valley National Bank compared to other lenders

Conforming Jumbo
Interest Rate Difference -0.08% -0.12%
Loan Related Closing Cost Difference -$1767 -$1477
Cost Adjusted Rate Difference -0.24% -0.16%

Based on the table above, Valley National Bank is cheap for Conforming and Jumbo mortgage refinance.

Other information about Valley National Bank:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: VALLEY NATIONAL BANCORP
Registered city and state: Wayne, NJ, 07470

Footnotes   [ + ]

1. The comparable mortgages control for Valley National 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.

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