Featured Product

    FFIEC Announces Availability of 2018 Data on Mortgage Lending

    August 30, 2019

    FFIEC announced the availability of 2018 data on mortgage lending transactions at U.S. financial institutions covered by the Home Mortgage Disclosure Act (HMDA). The covered institutions total nearly 5,683 and include banks, savings associations, credit unions, and mortgage companies. The data cover lending activity on or before August 07, 2019 and include 48 data points providing information about the applicants, loan origination, the property securing the loan or proposed to secure the loan in the case of non-originated applications, the transaction, and identifiers. Appendix A of the FFIEC filing instructions guide for HMDA data collected in 2018 contains the complete list of HMDA data points and the associated data fields.

    Many of the data points are available for the first time under the HMDA data. The data indicated that approximately 424,000 applications were for commercial purpose loans and approximately 57,000 applications were for reverse mortgages. Overall, credit score information was reported for 73.1% of all applications. Equifax Beacon 5.0, Experian Fair Isaac, and FICO Risk Score Classic 04 were the three most commonly reported credit scoring models at 22.8%, 18.8%, and 18.2% of total applications, respectively. For originated loans, the median primary applicant scores for these three models were between 738 and 746. This compares to medians ranging from 682 to 686 for denied applications. Combined loan-to-value ratio (CLTV) was reported for 74.3% of total applications while debt-to-income ratio (DTI) was reported for 75.3% of total applications. Additionally, the 2018 HMDA contains additional pricing information. It was also reported for the first time in data that indicated approximately 424,000 applications were for commercial purpose loans and approximately 57,000 applications were for reverse mortgages. The data show that the share of mortgages originated by nondepository, independent mortgage companies has increased in recent years.

    Overall, the 2018 data include information on 12.9 million home loan applications, with 7.7 million applications resulting in loan origination. The total number of originated loans decreased by about 924,000 between 2017 and 2018, or 12.6%. Refinance origination decreased by 23.1% from 2.5 million and home purchase lending increased by 0.3% from 4.3 million. A total of 2,251 reporters made use of the partial exemptions under the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act for at least one of the 26 data points that are eligible for the exemptions. In all, they account for about 425,000 records and 298,000 origination. The HMDA data is the most comprehensive publicly available information on mortgage market activity. The 2018 HMDA data reflect metropolitan statistical area definitions released by the Office of Management and Budget in 2017 that became effective for HMDA purposes in 2018. HMDA data alone cannot be used to determine whether a lender is complying with fair lending laws. The data do not include some legitimate credit risk considerations for loan approval and loan pricing decisions.

     

    Related Links

    Keywords: Americas, US, Banking, HMDA, Reporting, EGRRCP Act, Home Mortgage, Commercial Lending, Credit Risk, Mortgage Lending Loan Origination, FFIEC

    Featured Experts
    Related Articles
    News

    EIOPA Report Analyzes Use and Impact of Long-Term Guarantee Measures

    EIOPA submitted—to the European Parliament, the Council of the European Union, and EC—its 2020, fifth, and last annual report on long-term guarantee measures and measures on equity risk.

    December 03, 2020 WebPage Regulatory News
    News

    BIS, SNB, and SIX Announce Successful Completion of CBDC POC

    The BIS Innovation Hub Swiss Centre, SNB, and the financial infrastructure operator SIX announced the successful completion of a joint proof-of-concept (PoC) experiment as part of the Project Helvetia.

    December 03, 2020 WebPage Regulatory News
    News

    EBA Sets Out Treatment of Certain Banking Book Positions Under FRTB

    EBA published the final draft regulatory technical standards for calculation of own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    December 03, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Integrating Climate Change into SII Standard Formula

    EIOPA published discussion paper on a methodology for the potential inclusion of climate change in the Solvency II (sometimes also written as SII) standard formula when calculating natural catastrophe underwriting risk.

    December 02, 2020 WebPage Regulatory News
    News

    EU Issues Corrigenda to Investment Firms Directive and Regulation

    EU published, in the Official Journal of the European Union, corrigenda to the Directive and the Regulation on the prudential requirements and supervision of investment firms.

    December 02, 2020 WebPage Regulatory News
    News

    MAS Proposes Changes to Rules Arising from Banking Amendment Act

    MAS proposed amendments to certain regulations, notices, and guidelines arising from the Banking (Amendment) Act 2020.

    December 02, 2020 WebPage Regulatory News
    News

    PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December

    PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.

    November 30, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Aspects of Insurance Act, Solvency Standards & IFRS17

    RBNZ launched consultations on the scope of the Insurance Prudential Supervision Act (IPSA) 2010 and on the associated Insurance Solvency Standards.

    November 30, 2020 WebPage Regulatory News
    News

    SRB Sets Out Work Program for 2021-2023

    SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.

    November 30, 2020 WebPage Regulatory News
    News

    EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting

    EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.

    November 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6191