Federal Financial Institutions Examination Council
|For Immediate Release||July 26, 2001|
Tables are in Portable Document Format (PDF).
The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data for the year 2000 regarding mortgage lending transactions at 7,713 financial institutions covered by the Home Mortgage Disclosure Act (HMDA) in metropolitan statistical areas (MSAs) throughout the nation. These data include disclosure statements for each financial institution, aggregate data for each metropolitan area, and nationwide summary statistics regarding lending patterns. A fact sheet and the nationwide summary statistics are attached to this press release; the following provides a general overview.
The FFIEC prepares and distributes the individual disclosure statements and the aggregate reports on behalf of its member agencies -- the Federal Deposit Insurance Corporation, Federal Reserve Board, National Credit Union Administration, Office of the Comptroller of the Currency, and Office of Thrift Supervision -- and the Department of Housing and Urban Development. Lenders are required to make the disclosure statements available at their home offices within three business days of receiving the statements. In addition, for other metropolitan areas in which they have offices, lenders must either make a copy of the statements available at one branch per MSA or provide a copy upon written request. The disclosure statements and aggregate reports are now available for public inspection at central depositories throughout the nation.
The HMDA data cover home purchase and home improvement loans and contain information about loan originations, loan purchases, and applications that did not result in a loan. The 2000 data include a total of 19 million reported loans and applications, a decrease of about 16 percent from 1999 primarily reflecting decreased refinancing activity in 2000 (table 1). The number of home purchase loans extended in 2000 compared with 1999 varied by race and ethnicity. In 2000, the number of such loans increased 8 percent for Asians and 7 percent for Hispanics. Over the same period, home purchase lending to whites, Native Americans, and blacks fell by 6 percent, 5 percent, and 1 percent, respectively. From 1993 to 2000, the annual number of home purchase loans to Hispanics rose 138 percent; to Native Americans, 109 percent; to blacks, 89 percent; to Asians, 84 percent; and to whites, 25 percent. (The period 1993 to 2000 is used because HMDA coverage was expanded in 1993 to include significantly more independent mortgage companies than previously had been covered under HMDA.) Refer to table 7, attached, for year-to-year changes during the period 1993 to 2000.
The annual number of home purchase loans to low- and moderate-income applicants (with incomes less than 80 percent of the MSA median income) increased 86 percent from 1993 to 1999. From 1999 to 2000, however, the number of such loans to these applicants decreased by 4 percent, while the number of such loans extended to upper-income applicants (with incomes 120 percent or more of the median) in 2000 increased by 3 percent (table 7). During the 1993 to 2000 period, the number of home purchase loans to applicants with incomes 80-99 percent of the median increased by 48 percent; to applicants with incomes 100-119 percent of the median, 41 percent; and to applicants with incomes 120 percent or more of the median, 56 percent. Refer to table 7 for year-to-year changes during the period.
In 2000 the denial rates for conventional home purchase loans fell for the second consecutive year, after rising for most of the past decade (table 3). In 1993, the overall denial rate for conventional home purchase loans was 17 percent; by 1998 this rate had increased to 29 percent. The denial rate in 1999 was down slightly to 28 percent, and it fell further to 27 percent in 2000. The denial rates for these loans continue to vary among racial and ethnic groups. In 2000, the denial rates for conventional home purchase loans were as follows: for black applicants, 45 percent; for Native American applicants, 42; for Hispanic applicants, 31 percent; for white applicants, 22 percent; and for Asian applicants, 12 percent. These rates of loan denial were lower than in 1999 for each group except Asian applicants, for whom denial rates rose slightly.
Under HMDA, a lender is not required to collect information on an applicant's race or ethnicity, and gender for applications taken entirely by telephone. For applications taken by mail or electronic means (such as by facsimile or the internet), a lender must request the information, but an applicant is not required to provide it. From 1993 to 2000, the proportion of home loan applications of all types with missing race or ethnicity data increased from 8 percent to 28 percent. Applications for home purchase loans without race or ethnicity information constituted 4 percent of the home purchase loan applications in 1993; by 2000, the proportion was 15 percent, and involved roughly 1 million applications. For home purchase loans originated, 11 percent lacked race or ethnicity data in 2000, up from 3 percent in 1993. The growth in the number of applications missing race or ethnicity information could complicate analyses of changes in home mortgage lending over time.
The HMDA data also include information on loans that are sold, showing the type of purchaser of the loan. Among other things, this information is used by HUD in assessing the performance of Fannie Mae and Freddie Mac in meeting their legislatively mandated affordable housing goals.
The location of the central depository for a metropolitan area can be obtained by calling the FFIEC at (202) 872-7500. Beginning this year, the FFIEC will distribute these disclosures to institutions and central depositories in electronic form only. In addition, the FFIEC makes HMDA data directly available to the public in various formats, including magnetic tape, CD-ROM, and at the FFIEC Web site. The 2000 HMDA data will be available on the FFIEC Web site on July 30, 2001. Some data are available in paper form (tables for 2000 showing the nationwide aggregates and key demographic information for metropolitan areas, for instance). An order form can be obtained by calling 202/452-2016 (an automated- response system) and selecting menu options 4 and then 1, or by faxing a request for an order form to 202/452-6497. The order form is also available at the FFIEC Web site at this address: www.ffiec.gov/hmda/pubinfo.htm. The order form gives descriptions of the various reports, prices, and formats. Advance orders may be placed to be filled when the data become available.
The FFIEC also provides data from the nation's seven private mortgage insurance (PMI) companies. The 2000 PMI data include information on approximately 2 million applications for mortgage insurance; about 1 million applications were to insure home purchase mortgages, and 0.3 million were to insure mortgages to refinance existing obligations. These data will be available at individual PMI companies, at the central depositories in each metropolitan area, and from the FFIEC. By late July, the data will be available at central depositories and from the FFIEC in the same types of reports and in the same formats as the HMDA data.
Questions about a HMDA report for a specific lender should be directed to the lender's supervisory agency at the number listed below:
Federal Deposit Insurance Corporation - 800/934-3342;
Federal Reserve Board, HMDA Assistance Line - 202/452-2016
National Credit Union Administration, Office of Examination - 703/518-6360
Office of the Comptroller of the Currency,
Office of Thrift Supervision, Reports Division - 972/281-2068
Department of Housing and Urban Development, Office of Housing - 202/755-7530
The FFIEC was established in March 1979 to prescribe uniform principles, standards, and report forms and to promote uniformity in the supervision of financial institutions. The Council has five member agencies: the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The Council's activities are supported by interagency task forces and by an advisory State Liaison Committee, comprised of five representatives of state agencies that supervise financial institutions.