According to the Federal Financial Institutions Examination Council (FFIEC), data is now available on 2022 mortgage lending transactions reported under the Home Mortgage Disclosure Act (HMDA) by 4,460 U.S. financial institutions, including banks, savings associations, credit unions and mortgage companies.
Used by industry, consumer groups, regulators and others to assess potential fair lending risks and for other regulatory and informational purposes, the HMDA data are the most comprehensive publicly obtainable information on mortgage market activity. The data help the public assess how financial institutions are serving the housing needs of their local communities and facilitate federal financial regulators’ fair lending, consumer compliance and Community Reinvestment Act examinations.
Key observations include the following:
- For 2022, the number of reporting institutions increased by about 2.63% from 4,338 in the previous year to 4,460;
- The 2022 data include information on 14.3 million home loan applications. Among them, 11.5 million were closed-end and 2.5 million were open-end. Another 287,000 records are from financial institutions making use of Economic Growth, Regulatory Relief and Consumer Protection Act’s partial exemptions and did not indicate whether the records were closed-end or open-end;
- The share of mortgages originated by non-depository, independent mortgage companies has decreased and, in 2022, accounted for 60.2% of first-lien, one- to four-family, site-built, owner-occupied home-purchase loans, down from 63.9% in 2021;
- In terms of borrower race and ethnicity, the share of closed-end home purchase loans for first lien, one- to four-family, site-built, owner-occupied properties made to Black or African American borrowers rose from 7.9% in 2021 to 8.1% in 2022, the share made to Hispanic-White borrowers decreased slightly from 9.2% to 9.1%, and those made to Asian borrowers increased from 7.1% to 7.6%;
- In 2022, Black or African American and Hispanic-White applicants experienced denial rates for first lien, one- to four-family, site-built, owner-occupied conventional, closed-end home purchase loans of 16.4% and 11.1% respectively, while the denial rates for Asian and non-Hispanic-White applicants were 9.2% and 5.8% respectively.
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