Federal Financial Institutions Examination Council
|For Immediate Release||July 29, 1999|
Tables are in Portable Document Format (PDF).
The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data about 1998 mortgage lending activity in metropolitan areas and released analyses of nationwide summary statistics regarding lending patterns. The nationwide summary statistics are attached to this release; the following provides a general overview.
The data reflect lending activity for 7,837 institutions, both depository and non-depository, that are covered by the Home Mortgage Disclosure Act (HMDA) and that reported data to member agencies of the FFIEC--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 to the Department of Housing and Urban Development (HUD).
The 1998 data include 24.7 million reported loans and applications, an increase of about 50 percent from 1997, resulting primarily from a very large increase in refinancing activity (table 1). The number of home purchase loans extended in 1998 compared with 1997 increased 21 percent for Native Americans, 16 percent for Hispanics, 13 percent for Asians and Whites, and 9 percent for Blacks. During the six years from 1993 through 1998, the number of home purchase loans extended has increased 87 percent for Hispanics, 72 percent for Blacks, 52 percent for Native Americans, 46 percent for Asians, and 31 percent for Whites (table 7). (The period 1993-1998 is used because HMDA coverage was expanded in 1993 to include a significantly large group of independent mortgage companies.)
The number of home purchase loans extended to applicants in all income categories increased in 1998 compared with the prior year. The number of such loans extended in 1998 to applicants with incomes less than 80 percent of the median family income for their metropolitan statistical area (MSA) increased 19 percent over 1997. During the same period, applicants with incomes of 100-119 percent of their MSA's median experienced a 15 percent increase, while 14 percent increases were experienced by applicants with incomes of 80-99 percent and 120 percent or more of the median (table 7).
During the six years from 1993 through 1998, the number of home purchase loans extended to applicants with incomes less than 80 percent of the median increased 64 percent. During the same period, applicants with incomes equaling or exceeding 120 percent of the median experienced an increase of 45 percent. Applicants with incomes of 80-99 percent and 100-119 percent of the median experienced increases of 42 percent and 37 percent respectively (table 7).
A significant minority of home purchase loan applications in 1998 was for government-backed loans; the majority was for conventional (non-government-backed) loans (table 2). The number of government-backed loans extended to Native Americans increased 34 percent in 1998 compared with 1997. The number of such loans extended to Hispanics increased 9 percent over the same period, while Whites, Blacks, and Asians experienced increases of 5, 3, and 1 percent respectively (table 6).
The number of government-backed home purchase loans extended to applicants in all income categories increased in 1998 from 1997 levels. The number of such loans extended to applicants with incomes of less than 80 percent of their MSA's median increased 9 percent, compared with increases of 4 percent for applicants with incomes of 100-119 percent and 120 percent or more of the median. Applicants whose incomes were 80-99 percent of the median experienced a 3 percent increase (table 6).
The number of conventional loans extended to Hispanics and Native Americans increased 22 and 17 percent, respectively, in 1998 compared with 1997. The number of conventional loans extended to Asians and Whites increased 15 percent over the same period, and the number of such loans extended to Blacks increased 13 percent (table 5).
The number of conventional home purchase loans extended to applicants in all income categories increased in 1998 from 1997 levels. Applicants with incomes less than 80 percent of the MSA median experienced an increase of 25 percent. Applicants with incomes of 80-99 percent and 100-119 percent of the median experienced increases of 20 percent, while applicants whose incomes equaled or exceeded 120 percent of the median experienced an increase of 16 percent (table 5).
Denial rates for conventional home purchase loans in 1998 were 54 percent for Black applicants, 53 percent for Native American applicants, 39 percent for Hispanic applicants, 26 percent for White applicants, and 12 percent for Asian applicants (table 3). These rates were marginally higher than in 1997 for each group except Asians, for whom denial rates fell.
The overall denial rate for conventional loans was 29 percent in 1998. This rate has increased from 17 percent in 1993. Analysis of HMDA data alone is not sufficient, however, to determine whether this and other observed patterns in mortgage lending and denial rates result from market forces, changes in underwriting practices, illegal mortgage discrimination, or differences in mortgage loan growth among states and MSAs.
The disclosure statements underlying the statistics presented above and in the attached tables are available for public inspection at central depositories throughout the nation. The disclosures include individual financial institutions' disclosure statements and aggregate data for each MSA. (The location of the central depository for an MSA can be obtained by calling the FFIEC at 202/634-6526 or by visiting the FFIEC Web site (www.ffiec.gov) at this page: www.ffiec.gov/hmda/centdep/main.cfm.) In addition to the disclosures available at central depositories, HMDA data are available from three other sources: at offices of lenders subject to HMDA, directly from the FFIEC in Washington, D.C., and at the FFIEC Web site at http://www.ffiec.gov.
The FFIEC makes HMDA data available in various formats, including paper, magnetic tape, CD-ROM, and at the FFIEC Web site. Tables showing the nationwide aggregates and key demographic information for MSAs can be obtained in paper form. The data for all individual loans and applications, submitted by the reporting institutions, are available on CD-ROM and magnetic tape. An order form, with descriptions of the various reports and formats available, is attached to this release.
The HMDA reports contain data about loan originations, loan purchases, and applications that did not result in a loan; and they give information about three characteristics of applicants or borrowers: race or national origin, sex, and annual income. For most loans relating to property located in MSAs, as well as some loans relating to property located outside MSAs, the reports identify the geographic location, usually by census tract.
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 FFIEC also provides data on mortgage insurance applications. Data from the nation's eight private mortgage insurance (PMI) companies were compiled under the auspices of the Mortgage Insurance Companies of America, and are available at individual PMI companies, at the central depositories in each MSA, and from the FFIEC.