2010 HMDA Data Now Available

The Federal Financial Institutions Examination Council (FFIEC) has released 2010 Home Mortgage Disclosure Act (HMDA) data, which was collected from nearly 8,000 lenders and includes information on loan applications, originations, purchases and denials, and other actions, including incomplete or withdrawn applications.

The data covers 12.9 million home loan applications, of which almost 8 million resulted in loan originations, and 3.2 million loan purchases. According to the FFIEC, the number of reporting institutions fell 2% from the year before, attributable to a 7% decline in the number of mortgage companies reporting data.

The total number of originated loans of all types and purposes reported decreased by about 1.1 million, or 12%, from 2009, in part because of a 14% decline in the number of refinancings, the FFIEC says.

The HMDA data also shows a continued heavy reliance on Federal Housing Administration (FHA)-insured loans. The FHA share of first-lien mortgages fell to 36% in 2010 from 37% in 2009. In 2007, the FHA's share was approximately 7%.

First-lien lending for home purchases backed by Veterans Affairs (VA) guarantees also has increased markedly, the data shows. The VA market share increased from 2.7% in 2007 to 6.7% in 2009 and 7% in 2010.

The FFIEC also reports that blacks and Hispanic whites had notably higher gross denial rates for conventional home purchase applications than non-Hispanic whites. The denial for Asians borrowers, on the other hand, was slightly lower than the corresponding gross denial rates for non-Hispanic whites. These relationships are similar to those found in previous data sets, the FFIEC points out.


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