Is First Hawaiian Bank An Expensive Mortgage Lender?

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

Interest Rate: similar to average (+0.04%)
Loan Related Closing Costs: higher than average (+$1105)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, First Hawaiian Bank originated 1914 mortgages, a national market share of 0.0%. It was primarily active in HI, with a 8.1% market share.

On average, First Hawaiian Bank’s interest rates were similar to those of comparable mortgages at other lenders (+0.04%).1The comparable mortgages control for First Hawaiian 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 $9583, which was higher than those of comparable mortgages at $8478, with a difference of +$1105. Overall, we estimate that First Hawaiian Bank tends to be an expensive lender, with a cost-adjusted-rate difference of +0.08% 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 First Hawaiian Bank.

First Hawaiian Bank originated Conforming 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 First Hawaiian Bank compared to other lenders

Conforming Jumbo
Interest Rate Difference +0.08% +0.09%
Loan related Closing Cost Difference +$1271 +$352
Cost Adjusted Rate Difference +0.14% +0.09%

Based on the table above, First Hawaiian Bank is more expensive than other lenders for Conforming and Jumbo purchase mortgages.

Mortgage Refinancing from First Hawaiian Bank compared to other lenders

Conforming Jumbo
Interest Rate Difference -0.07% +0.09%
Loan Related Closing Cost Difference +$1237 +$792
Cost Adjusted Rate Difference -0.02% +0.10%

Based on the table above, First Hawaiian Bank is similar to other lenders for Conforming mortgage refinance. It is more expensive than other lenders for Jumbo mortgage refinance.

Other information about First Hawaiian Bank:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: FIRST HAWAIIAN, INC.
Registered city and state: Honolulu, HI, 96819

Footnotes   [ + ]

1. The comparable mortgages control for First Hawaiian 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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