Mortgage lender · Torrance, CA · LEI 549300VBY3NBKUNMKL64

HONDA Federal Credit Union review: approval odds, rates and grade (2025)

HONDA Federal Credit Union earns an F, in the bottom tier of small mortgage lenders. It turned down 28.0% of the applications it decided on in 2025, which ranks in the 9th percentile for approval odds. Its median loan was priced 5.95 points above the average prime offer rate, ranking in the 0th percentile on pricing. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

765Applications2025
54.9%Originatedof applications
28.0%Decision denial ratenational 22.6%
7.25%Median ratenational 6.63%
$49MLoan volume25 states

HONDA Federal Credit Union at a glance, 2025

Every figure is from the lender's own HMDA filing. "vs national" compares with all lenders combined.

21.3%Denial rate (all applications)+3.33 pts vs national
28.0%Denial rate (decided applications)+5.37 pts vs national
54.9%Origination rate-3.13 pts vs national
21.4%Withdrawn by applicant
2.4%Closed for incompleteness
7.25%Median interest rate+0.63 pts vs national
5.95Median rate spread (pts over APOR)+5.69 pts vs national
$95,000Median loan amount
$970Median total loan costs
$95kMedian applicant income
68%Median loan-to-value
1High-cost (HOEPA) loans

How the F grade breaks down

Each component is a percentile rank among 1,883 small mortgage lenders. Higher is better. Components the lender does not report are left out and the weights redistributed.

Approval oddsdecision denial rate, weight 45%

9th28.0% denied

Pricingmedian rate spread over APOR, weight 30%

0th5.95 pts

Processwithdrawn + incomplete share, weight 15%

12th23.8%

Closing coststotal loan costs ÷ loan amount, weight 10%

85th1.02% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
202393164615.2%17.9%7.50%$72M
202490064114.0%16.4%8.00%$80M
202576542021.3%28.0%7.25%$49M

What HONDA Federal Credit Union lends

Applications by purpose and loan type in 2025, with the denial rate for each. A lender's mix explains a lot of its headline rate: HELOCs and FHA loans are denied far more often than conventional purchase loans.

By loan purpose

Home purchase 170 22% · 21.8% denied
Refinance 45 6% · 51.1% denied
Cash-out refinance 516 67% · 19.2% denied
Home improvement 32 4% · 9.4% denied
Other / HELOC 2 0% · 50.0% denied

By loan type

Conventional 765 100% · 21.3% denied

Also: 336 home-equity lines, 0 reverse mortgages, 6 manufactured homes, 10 investment properties.

Why HONDA Federal Credit Union denies applications

Primary reason reported for each of the 163 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Debt-to-income ratio 68 42%
Credit history 52 32%
Collateral 22 13%
Other 10 6%
Insufficient cash 9 6%
Unverifiable information 1 1%
Employment history 1 1%

How these reasons compare nationally →

Who gets approved at HONDA Federal Credit Union

Decision denial rate by applicant profile. Groups with fewer than 20 applications are omitted.

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k733344.1%
$50k – $100k33217331.4%
$100k – $150k22213023.5%
$150k – $250k936413.5%
Over $250k301528.6%
Applicant ageApplicationsOriginatedDecision denial rate
Under 2521660.0%
25–341297328.4%
35–441648131.9%
45–5418510128.4%
55–6417111319.3%
65–74854226.3%

Where HONDA Federal Credit Union lends

25 states and 114 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
Ohio50529617.8%7.25%#136
Alabama773236.4%7.44%#257
Indiana513017.7%7.50%#348
California432132.6%7.50%#543
North Carolina291517.2%7.25%#476
South Carolina17829.4%6.25%#470
Georgia10430.0%8.00%#666
Florida7214.3%6.69%#999
Texas5320.0%7.63%#1,097

Frequently asked questions

HONDA Federal Credit Union denied 28.0% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 9th percentile of small mortgage lenders.

The most common reason HONDA Federal Credit Union gave in 2025 was "debt-to-income ratio", cited on 41.7% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

The median interest rate on loans HONDA Federal Credit Union originated in 2025 was 7.25%, and its median rate spread over the average prime offer rate was 5.95 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 22% of its applications were for home purchases, 73% for refinancing (including cash-out), and 4% for home improvement or other purposes. By loan type: 100% conventional, 0% FHA, 0% VA.

Every figure on this page comes from the Home Mortgage Disclosure Act (HMDA) Loan/Application Register published by the CFPB, which lenders are required by federal law to file. We add the grade and the comparisons; we do not add facts.

About this data. HMDA data is published once a year by the CFPB. The current release covers applications acted on in calendar year 2025. Figures describe applications the lender acted on, including loans it later sold. Interest rates and costs are medians on originated loans only; some depository institutions are exempt from reporting pricing fields, which is why a few cells read "—". MortgageGrades is not affiliated with HONDA Federal Credit Union. Data sources · Methodology