Worst states to be a mortgage originator

by Vernon Clement Jones22 Jul 2015
That ranking of states is already raising eyebrows and blood pressure across the mortgage industry, but it also has the potential to help originators better sell their services.

Hawaii, California, New York, Connecticut, Colorado, Utah, Massachusetts, Rhode Island, Florida and Texas -- all received that dubious distinction, handed out this week by industry aggregator GOBankingRates.

The site formed the list by comparing 15- and 30-year mortgage rates from across the country and during the first quarter. Its formula also factored in average listing prices for each state.

Hawaii came out on top – or rather on bottom – once the numbers were tallied.

Its “30-year mortgage rate average doesn’t help matters much,” GOBankingRates says. “The middling average rate of 3.768% would result in a staggering $4,731 monthly mortgage payment for the average home listing price.” 

Ironically, the sunny state, according to the report, has a “decent” average 15-year mortgage rate at 3.031% APR. That wasn’t, unfortunately, enough to counteract Hawaii’s high listing prices – the highest, in fact, for the nation, at $1,019,316.

The list actually offers brokers in the top 10 states an opportunity to better market their own rates, generally lower than their big bank competitors. It’s about turning a potential negative into a positive, say industry players.


  • by Fred | 7/22/2015 9:42:32 AM

    Rates are a poor way of ranking. All originators in those states are working with basically the same rate structure, so it an even playing field.

  • by Miranda Aikman | 7/22/2015 9:46:47 AM

    I agree Fred. This is like when your watching a football game and the announcers start coming up with crazy stats or records that no one cares about just to take up time/space. :)

  • by marcus | 7/22/2015 9:47:36 AM

    They are basing this on rates and listing prices! Utter nonsense. Housing expense as a percentage of average income for an area is what matters the most. I thought we were going to see an article on state (over) regulation or some such useful information. Nothing but clickbait.


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