Utahns choose local lenders over national ones, study finds

Utahns choose local lenders over national ones, study finds

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SALT LAKE CITY — Most Utahns receive mortgage loans from locally based companies rather than more globally recognized money lenders such as JPMorgan or Bank of America, according to a new study.

Although the majority of Utahns rely on local lenders, a significant number either never hear back or the process is drawn out regarding their application, according to recent data released by Mortgage TrueView, a mortgage industry business intelligence and advanced analytics firm.

Utahns, in general, trust and rely on local establishments. According to a 2014 Gallup Poll, Utah ranks third nationally for residents trusting their state governments, with 75 percent of Utahns trusting local leaders. When it comes to trusting one’s neighbors, Utah tied with South Dakota residents nationally for being the most trusting states in a 2009 Gallup Poll. Eighty-five percent of residents in these states said they would expect a neighbor who found a lost wallet or purse containing $200 to return it.

Utah's high-level of trust in local institutions may contribute to the fact that Utah-based lenders accounted for seven of the top 10 mortgage lenders within the state. These local companies received a total of 37,558 total applications, or approximately 28 percent of the 2013 market, according to the Mortgage TrueView study.

While Wells Fargo ranks No. 1 for Utah loans in 2013, receiving 10,472 applications, or approximately 7.8 percent of all applications, Utahns, overall, applied in greater numbers to local lenders. For example, Utah based American First Credit Union came in as the second-most sought after lender, receiving 8,191 applications or approximately 6 percent of all total applications.

Noticeably absent from the list of top 10 Utah lenders were behemoths JPMorgan Chase, Quicken Loans, Bank of America, Citibank and Utah-based Zions First National Bank.


Almost all Top 20 lenders show favorable E and C scores, but Axiom's engagement with minority borrowers is impressive. These results are an important factor in driving Utah's strong economy.

–David Moffat, CEO Mortgage TrueView


Mortgage TrueView’s CEO David Moffat noted that while the raw numbers are interesting, the real story is provided by a series of Mortgage TrueView proprietary scores — the D, A, E, and C Scores — providing a more in-depth perspective on the mortgage-lending situation in Utah.

The most decisive mortgage lender in the Utah market is Zions First National Bank, according to the Mortgage TrueView D Score. The D Score indicates whether or not a mortgage lender is able to “stage” applications into decision.

“While Zions didn’t make the list of Top 10 lenders, they are nonetheless tops when it comes to making sure that no applications fall through the cracks. This is an incredible score for an institution, especially one the size of Zions,” Moffat said.

Moffat also looked at which company was most likely to lend to minorities. The E Score measures a mortgage lender’s engagement with minority borrowers, and the C Score compares denial rates for minority borrowers to the results for white male non-Latino applicants, respectively. The E and C scores show that Axiom Financial leads other mortgage companies in this regard.

“Almost all Top 20 lenders show favorable E and C scores, but Axiom’s engagement with minority borrowers is impressive. These results are an important factor in driving Utah’s strong economy, ”Moffat said.

Bank of Utah is the most affirmative lender within the Utah market, according to the A Score, indicating a lender’s approval-to-denial ratio relative to other market lenders,

“While Bank of Utah just made the top 20 based on loan applications, loans that reach the decision point at Bank of Utah are more likely to be approved than denied when compared to market results,” Moffat said.

Moffat concluded by noting that the top scores went to local institutions which confirms that, like politics, all real estate is local.

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Sara Jarman

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