Mortgage lender · Irvine, CA · LEI 2549005Q4HZ55QX7YC64

Watermark Capital review: approval odds, rates and grade (2025)

Watermark Capital earns an A, placing it in the top fifth of small mortgage lenders. It turned down 4.5% of the applications it decided on in 2025, which ranks in the 76th percentile for approval odds. Its median loan was priced 0.03 points above the average prime offer rate, ranking in the 79th percentile on pricing. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

908Applications2025
76.7%Originatedof applications
4.5%Decision denial ratenational 22.6%
6.50%Median ratenational 6.63%
$383MLoan volume36 states

Watermark Capital at a glance, 2025

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

4.2%Denial rate (all applications)-13.79 pts vs national
4.5%Denial rate (decided applications)-18.11 pts vs national
76.7%Origination rate+18.62 pts vs national
6.5%Withdrawn by applicant
0.0%Closed for incompleteness
6.50%Median interest rate-0.13 pts vs national
0.03Median rate spread (pts over APOR)-0.23 pts vs national
$455,000Median loan amount
$5,132Median total loan costs
$183kMedian applicant income
75%Median loan-to-value
7High-cost (HOEPA) loans

How the A 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%

76th4.5% denied

Pricingmedian rate spread over APOR, weight 30%

79th0.03 pts

Processwithdrawn + incomplete share, weight 15%

73rd6.5%

Closing coststotal loan costs ÷ loan amount, weight 10%

81st1.13% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20237576175.0%5.2%6.62%$306M
20248466764.5%4.7%6.62%$378M
20259086964.2%4.5%6.50%$383M

What Watermark Capital 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 473 52% · 3.8% denied
Refinance 255 28% · 3.9% denied
Cash-out refinance 152 17% · 6.6% denied
Home improvement 28 3% · 0.0% denied

By loan type

Conventional 826 91% · 4.1% denied
FHA 37 4% · 8.1% denied
VA 45 5% · 2.2% denied

Also: 0 home-equity lines, 24 reverse mortgages, 0 manufactured homes, 173 investment properties.

Why Watermark Capital denies applications

Primary reason reported for each of the 38 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Collateral 15 39%
Debt-to-income ratio 11 29%
Other 6 16%
Employment history 4 11%
Credit history 1 3%
Unverifiable information 1 3%

How these reasons compare nationally →

Who gets approved at Watermark Capital

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

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k20120.0%
$50k – $100k129935.9%
$100k – $150k1431136.5%
$150k – $250k2832293.0%
Over $250k2692103.9%
Applicant ageApplicationsOriginatedDecision denial rate
25–341921463.4%
35–443152494.1%
45–541481146.4%
55–641381035.4%
65–7462500.0%
Over 7439246.1%

Where Watermark Capital lends

36 states and 243 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
California3232493.7%6.63%#309
Texas1831511.6%6.63%#432
Maryland46374.4%7.06%#326
Arizona39332.6%6.50%#341
Virginia34262.9%6.56%#426
Florida322112.5%6.50%#674
Nevada311912.9%6.63%#247
Washington292310.3%6.25%#350
North Carolina23184.4%6.13%#505
Massachusetts18140.0%5.99%#422
District of Columbia161012.5%6.44%#147
New Jersey1680.0%6.25%#481
Oregon15136.7%6.38%#325
Connecticut1169.1%6.31%#368
Utah1190.0%6.38%#277
Pennsylvania1070.0%6.13%#687
Tennessee1070.0%6.13%#634
Georgia9511.1%5.99%#691
Colorado740.0%6.31%#569
Idaho7414.3%6.63%#301
Michigan640.0%5.94%#566
South Carolina660.0%6.62%#616

Frequently asked questions

Watermark Capital denied 4.5% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 76th percentile of small mortgage lenders.

The most common reason Watermark Capital gave in 2025 was "collateral", cited on 39.5% 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 Watermark Capital originated in 2025 was 6.50%, and its median rate spread over the average prime offer rate was 0.03 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 52% of its applications were for home purchases, 45% for refinancing (including cash-out), and 3% for home improvement or other purposes. By loan type: 91% conventional, 4% FHA, 5% 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 Watermark Capital. Data sources · Methodology