news.cuna.org/articles/14M_apps,_28M_purchases_highlight_2013_mortgage_data

14M apps, 2.8M purchases highlight 2013 mortgage data

September 22, 2014

WASHINGTON (9/23/14)--Data on mortgage lending at 7,190 financial institutions covered by the Home Mortgage Disclosure Act (HMDA) has been released by the Federal Financial Institutions Examination Council.

The data includes information from 2013 mortgage applications, originations, purchases and sales of loans, denial and other actions at credit unions, as well as banks, savings associations and mortgage companies.

Highlights from the data include:

  • A decline in the number of reporting institutions by 3% from 2012. This continues a downward trend since 2006 when HMDA covered about 8,900 lenders, reflecting mergers, acquisitions and the failure of some institutions;

  • Information on nearly 14 million home loan applications, of which 8.7 million resulted in loan originations. It also includes information on roughly 2.8 million loan purchases, for a total of nearly 16.8 million actions;

  • Information on about 516,000 requests for preapprovals related to a home-purchase loan;

  • A decline in the total number of originated loans of all types and purposes by about 1.1 million, or 11%, from 2012. Refinance originations declined by 23% and home-purchase lending increased by about 13%;

  • A slight decline in the share of home purchase loans for one- to four-family properties made to black and Hispanic-white borrowers, while the share made to Asian borrowers increased slightly. In contrast, the share of refinance loans made to black and Hispanic-white borrowers rose in 2013 relative to 2012, whereas the share to Asian borrowers declined;

  • A decline to 26% from 31% in the share of one- to four-family home-purchase loans that were made to low- and moderate-income borrowers, defined as those with income of less than 80% of area median income, while the share of refinance loans to low- and moderate-income borrowers increased slightly to 20% from 19%;

  • A sharp increase, to 22% from 4.6% in 2012, in the share of Federal Housing Administration-insured first-lien home-purchase loans with annual percentage rates (APRs) above the reporting threshold. About 75% of FHA-purchase loans that met the higher-priced definition had APRs less than 0.5 percentage points above the higher-priced threshold; and

  • A higher denial rate for conventional home purchase loans for black and Hispanic-white applicants. The denial rate for Asian applicants is more comparable to the denial rate for non-Hispanic white applicants. According to the data, these relationships are similar to those found in earlier years.

The data uses census tract delineations and population and housing data from the 2010 census.

Use the resource link below to access the complete data.

2013 Home Mortgage Disclosure Act data (PDF)