Data Point: 2017
Mortgage Market Activity
and Trends
A First Look at the 2017 HMDA Data
May 2018
1 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Jason Dietrich
Feng Liu
Leslie Parrish
David Roell
Akaki Skhirtladze
This is the first in a series of Data Points that describe mortgage market activity over time based
on data reported under the Home Mortgage Disclosure Act (HMDA).
2 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Table of Contents
Table of Contents ...................................................................................................... 2
1. Introduction ........................................................................................................ 3
2. HMDA data coverage of the mortgage market ............................................. 8
3. Mortgage applications and originations ..................................................... 12
4. Mortgage outcomes by demographic groups ............................................. 22
4.1 Distribution of home loans across demographic groups ....................... 22
4.2 Average loan size by demographic group ............................................... 29
4.3 Jumbo lending ........................................................................................ 34
4.4 Variation across demographic groups in nonconventional loan use .... 35
4.5 Denial rates and reasons ........................................................................ 40
5. Incidence of higher-priced lending .............................................................. 49
5.1 HOEPA loans .......................................................................................... 57
6. Lending institutions ........................................................................................ 62
7. Appendix: Requirements of Regulation C .................................................. 76
3 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
1. Introduction
This Data Point provides an overview of residential mortgage lending in 2017 based on data
reported under the Home Mortgage Disclosure Act of 1975 (HMDA). HMDA is a data collection,
reporting, and disclosure statute that was enacted in 1975. HMDA data are used to assist in
determining whether financial institutions are serving the housing needs of their local
communities; facilitate public entities’ distribution of funds to local communities to attract
private investment; and help identify possible discriminatory lending patterns.
1
Institutions
covered by HMDA are required to collect and report certain specified information annually
about each mortgage application acted upon and mortgage purchased during the prior calendar
year.
2
The data include the disposition of each application for mortgage credit; the type,
purpose, and characteristics of each home mortgage application or purchased loan during the
calendar year; the census-tract designations of the properties; partial loan pricing information
for some loans; demographic and other information about loan applicants, including their race,
ethnicity, sex and income; and information about loan sales (see the Appendix for a full list of
items reported under HMDA for 2017).
HMDA data are the most comprehensive source of publicly-available information on the U.S.
mortgage market, and the only source that provides nationwide application-level data on the
demand for and supply of mortgage credit. Given that mortgage debt is by far the largest
1
For a brief history of HMDA, see Federal Financial Institutions Examination Council, “History of HMDA,” available
at www.ffiec.gov/hmda/history2.htm
.
2
The 2017 HMDA data, which are the subject of this Data Point, cover mortgage applications acted upon and
mortgages purchased during calendar year 2017.
4 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
component of household debt in the United States, these data have proven invaluable for
research and supervisory work, as well as for public policy deliberations related to the mortgage
market.
As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Congress
amended HMDA to, among other things, expand the number of data points required to be
collected and reported, and it directed the Bureau of Consumer Financial Protection (the
Bureau) to implement these changes by regulation. The Bureau finalized a rule implementing
these and other changes in October 2015.
3
Although most of the rule’s provisions took effect on
January 1, 2018 and affect data to be collected in 2018 and later, two changes took effect on
January 1, 2017. First, depository institutions (DIs) that originated fewer than 25 covered
closed-end mortgages in either of the preceding two years are now no longer required to report.
4
Second, financial institutions are relieved of the obligation to make a version of their Loan
Application Registers (LARs), modified to protect applicant and borrower privacy, available to
members of the public on request. Instead, financial institutions must provide only a notice
advising members of the public seeking “modified” LARs that they may be obtained on the
Bureau’s website. Accordingly, the Bureau has collected and made available on its website the
modified LAR file for each institution that has filed 2017 HMDA data. The modified LAR files
include each financial institution's loan-level HMDA data, as modified by the Bureau to protect
the privacy of applicants and borrowers. Unlike in past years, the modified HMDA loan-level
data made available to the public in the modified LAR files for each individual reporter will not
3
On July 21, 2011, rulemaking responsibility for HMDA was transferred from the Federal Reserve Board to the newly
established Bureau of Consumer Financial Protection. The federal HMDA agencies agreed that, beginning January 1,
2018, HMDA reporters would file their HMDA data with the Bureau, which would process it and facilitate public
access on behalf of the agencies and the Federal Financial Institutions Examination Council (FFIEC; www.ffiec.gov
).
4
See https://files.consumerfinance.gov/f/201510_cfpb_2017-hmda-institutional-coverage.pdf for additional details
about all reporting requirements for 2017 data. In September 2017, the Bureau published in the Federal Register a
rule making a number of technical corrections and clarifying certain requirements to the rule implementing HMDA,
and it increased the threshold for collecting and reporting data about open-end lines of credit for a period of two
years. See 82 FR 43088 (Sep. 13, 2017).
5 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
remain static but will be updated, on an ongoing basis, to reflect resubmissions and late
submissions.
5
The Bureau has also created a static loan-level 2017 HMDA data file which consolidates data
from individual reporters. That file and this Data Point reflect the data as of April 18, 2018.
Though this consolidated static loan-level file will be not be changed, similar to the modified
LAR data, the Bureau will provide updates to the consolidated dataset to reflect any later
resubmissions or late submissions. Thus, results of analyses using updated consolidated
datasets may not be identical to the results reported in this Data Point. However, we expect that
the consolidated dataset with any future updates would produce substantially similar results.
The remainder of this Data Point summarizes the 2017 HMDA data and recent trends in
mortgage and housing markets. Some of the key findings are as follows:
6
The number of institutions reporting in 2017 fell 13.5 percent from 2016 (from 6,762 to
5,852). This is partly due to the increase of the reporting threshold from one to 25
covered originations for depository institutions. However, we do not believe the
threshold change has significant impact on the discussion of the historical trends and
cross-year comparisons in the rest of this Data Point.
For loans secured by one- to four-family properties, home-purchase originations
increased from 4.0 million in 2016 to 4.2 million in 2017, while refinance originations
showed a significant drop from 3.8 million in 2016 to 2.5 million in 2017. In sum, the
number of mortgage originations in 2017 declined 12.4 percent, from 8.4 million in 2016
to 7.3 million in 2017.
5
Accordingly, loan-level data downloaded from https://www.consumerfinance.gov/data-research/hmda/ after the
publication of this Data Point may be updated to include any such resubmissions or late submissions.
6
For 2017 mortgage lending activities, this Data Point is based on the analysis of the consolidated static loan-level
2017 HMDA data file made available concurrently to the public. Results for all prior years are based on the amended
HMDA data available to the Bureau, and may differ somewhat from numbers calculated from the public release files.
This is because some lenders resubmit amended HMDA data over time, which are not reflected in the initial public
release of data.
6 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Home-purchase originations continued on the upward trend which has been underway
since 2011. The number of first-lien, owner-occupied home-purchase originations
increased to 3.7 million in 2017—the highest level since 2007.
Black borrowers increased their share of home-purchase loans for one-to-four-family,
owner-occupied, site-built properties in 2017, the fourth consecutive annual rise for this
group. The HMDA data indicate that 6.4 percent of such loans went to black borrowers,
up from 6.0 percent in 2016. In contrast, 8.8 percent went to Hispanic white borrowers,
unchanged from 2016. The share of home-purchase loans to low-or-moderate-income
(LMI) borrowers increased slightly to 26.3 percent in 2017 from 26.2 percent in 2016.
Not adjusting for inflation, the average size of first-lien, site-built home-purchase loans
secured by one- to four-family, owner-occupied properties
rose 3.9 percent in 2017, to
$267,000. All racial and ethnic groups experienced increases in average loan amount for
home-purchase loans from 2016 to 2017. The average size of these home-purchase loans
for Asian, black, and non-Hispanic white borrowers in 2017 were all above their previous
peaks during 2006–2007. The average loan amount for Hispanic white borrowers was
approaching but still below the 2006 peak.
The shares of borrowers of all groups using nonconventional loans continued to decrease
from the years immediately after the Great Recession. Black and Hispanic white
borrowers continued to be much more likely to use nonconventional loans (that is, loans
with mortgage insurance from the Federal Housing Administration (FHA) or guarantees
from the Department of Veterans Affairs (VA), the Farm Service Agency (FSA), or the
Rural Housing Service (RHS)) than conventional loans compared with other racial and
ethnic groups. In 2017, among home-purchase borrowers, 64.9 percent of blacks and
55.5 percent of Hispanic whites took out nonconventional loans, whereas about 33.1
percent of non-Hispanic whites and just 13.4 percent of Asians did so.
The share of mortgages originated by nondepository, independent mortgage companies
has increased sharply in recent years. In 2017, this group of lenders accounted for 56.1
percent of first-lien, owner-occupied, site-built home-purchase loans, up from 53.3
percent in 2016. Independent mortgage companies also originated 55.8 percent of first-
lien, owner-occupied, site-built refinance loans, an increase from 52.2 percent in 2016,
7 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
which was the first year in which independent mortgage companies made the majority of
such loans since at least 1995.
8 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
2. HMDA data coverage of the
mortgage market
While HMDA is the most extensive source of loan level data on residential mortgage lending in
the United States, it does not cover the entire mortgage market. Among DIs, the smallest
institutions, institutions without any branches in a metropolitan statistical area (MSA), and
institutions that are not federally insured or regulated, or that do not make loans insured by a
Federal agency or intended for sale to Fannie Mae or Freddie Mac, do not have to report HMDA
data. The recent changes which raised the reporting threshold for reporting from one covered
origination to 25 for DIs further increased the number of DIs that do not have to report. Among
nondepository institutions, smaller institutions, institutions that make relatively few mortgage
loan originations, and those that operate entirely outside of an MSA also do not have to report
data.
7
7
This section describes HMDA coverage applicable at the time the data discussed here was reported. Some of the
Regulation C reporting criteria have changed in rules applicable to data collected in 2018 and to be reported in 2019.
At the time the data discussed here was reported, depositories with less than $44 million in assets and
nondepositories that had less than $10 million in assets that originated fewer than 100 home-purchase and
refinance loans in the previous year were not required to report. For additional details, see Federal Financial
Institutions Examination Council (2017), “A Guide to HMDA Reporting: Getting It Right!” available at
https://www.ffiec.gov/hmda/guide.htm.
9 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
To assess the impact of these reporting criteria on market coverage, we first estimate the
universe of mortgage lenders and the number of mortgage originations
8
by all lenders regardless
of whether they are HMDA reporters using data from HMDA, the Bank/Thrift and Credit Union
Call Reports, the Nationwide Mortgage Licensing System (NMLS), and other data sources. More
specifically, for financial institutions that did not file HMDA data in a given year but reported
relevant mortgage activity to one of these alternative sources, we took the following estimation
approaches. For credit unions that did not file HMDA data, we examined their year-to-date loan
origination volumes reported at the end of the year to Credit Union Call Reports. In doing so, we
only used the categories of mortgage loans under the Credit Union Call Reports that line up with
the transactional coverage requirements governing the 2017 HMDA data.
9
Similarly for
nondepository institutions licensed under the NMLS that did not report HMDA data, we took
the loan origination volumes under the NMLS data, all the while keeping the definitions aligned
with the HMDA transactional requirements.
For banks and thrifts that did not report under HMDA, the Call Reports only contain
information on the end-of-period balance of the mortgages on their books, but not the
origination volumes within the reporting period. For those institutions, we developed a set of
econometrics models, first estimating the relationships between annual originations and the
end-of-year balances. These models control for an array of institutional characteristics, such as
assets, institution type, number of employees, number of branches in MSAs, etc. Then we apply
8
Note for the discussion in this section, we are defining the universe of mortgages in line with the transactional
coverage criteria under HMDA applicable at the time the data discussed here were reported. That is because lenders
do not report mortgages for a purpose other than purchasing a residential dwelling, refinancing an outstanding
mortgage, or making home improvements. Thus, a home equity loan taken out solely to finance education expenses,
even though secured by a residential dwelling, for example, would not be reported. In addition, home equity lines of
credit (HELOCs), regardless of their purpose, are not required to be reported under rules applicable at the time the
data discussed here were reported. Hence, the mortgage universe we tried to estimate does not include home equity
lines of credit and most home equity loans.
9
For instance, these estimates include mortgage loans regardless of lien status but do not include open-end HELOCs.
They also do not differentiate whether borrowers are natural persons or not.
10 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
this estimated relation to those non-HMDA reporters to project their likely mortgage origination
volumes.
10
Based on this analysis, approximately 12,000 institutions originated at least one closed-end
mortgage loan in 2017, with a total origination volume of approximately 7.9 million loans.
11
A
total of 5,852 of these institutions, or about 49 percent, reported HMDA data for 2017. These
reporters originated about 7.3 million loans or about 92 percent of the estimated number of
originations in the U.S.
For 2016, we estimated that approximately 12,300 institutions originated at least one closed-
end mortgage loan, with a total origination volume of about 8.9 million loans. A total of 6,762 of
these institutions, or about 55 percent reported HMDA data for 2016. These reporters originated
about 8.4 million loans or about 94 percent of the estimated number of originations in the U.S.
This decline in HMDA’s coverage of mortgage lenders from 2016 to 2017 is partly driven by the
increased reporting threshold for DIs discussed above. Holding constant all other reporting
criteria for asset size, volume, and type, we estimated that increasing the reporting threshold for
DIs from one to 25 covered originations reduced the number of DIs required to report in 2017
by 1,611 institutions. However, 648 of these institutions still chose to voluntarily report 2017
HMDA data, meaning that 963 institutions were excluded from the 2017 HMDA data solely due
to the threshold change. The other forces driving the decline of the number of HMDA reporters
may include the overall decline of the market volume and consolidation among mortgage
originators.
10
We assume the dependent variable (the number of mortgage originations for each institution) follows
a Poisson distribution, and the logarithm of its expected value can be modeled by a linear combination of unknown
parameters. In other words, we adopted the Poisson regression.
11
To assess the overall impact of our approach in applying econometrics estimates, we report that, of the
approximately 12,000 institutions that originated at least one closed-end mortgage loan in 2017, around 2,600
institutions are banks and thrifts that did not report HMDA data and for which we applied our econometrics models.
In total, we estimated their origination volume in 2017 was around 190,000.
11 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Not surprisingly, the DIs excluded by the increased reporting threshold were disproportionately
small institutions. In total, these institutions originated only about 20,000 loans in 2016 and
11,400 in 2017. Given the relatively small reduction in the total volume of originations at these
newly exempted institutions, the threshold change likely has only a small impact on the
discussion of the historical trends and cross-year comparisons in this report despite the
relatively large drop in the number of the reporters due to the DI threshold change.
12
12
Alternatively one might compare the number of loans reported under HMDA with the number of loans reported in
consumer credit files maintained by nationwide consumer credit reporting agencies (NCRAs); such was the case in
Bhutta, Neil, Steven Laufer, and Daniel R. Ringo, Residential Mortgage Lending in 2016: Evidence from the Home
Mortgage Disclosure Act Data, Federal Reserve Bulletin Vol. 103, No. 6 (Nov 2016), available at
https://www.federalreserve.gov/publications/files/2016_HMDA.pdf
. However, there are certain disadvantages in
using NCRA data to estimate the total universe of mortgage originations including a lag between the time when a
mortgage is originated and when the information on the mortgage trade line is first reported to the credit bureaus
and potential duplication and transactional coverage issues. For our purposes, the estimates reported from NCRAs
do not allow the breakdown of the origination volumes by the origination entities, hence unlike the methodology we
developed and presented in this section we cannot use them to estimate the impact of the regulation change at the
institution level.
12 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
3. Mortgage applications and
originations
In 2017, 5,852 financial institutions—banks, savings associations, credit unions, and
nondepository mortgage lenders—reported data under HMDA on about 12.1 million home
mortgage applications. This total includes approximately 2.3 million applications that were
closed by the lender as incomplete or were withdrawn by the applicant before a decision was
made. In total, lenders reported approximately 7.3 million originations, down from 8.4 million
originations in 2016 (Table 1A).
Refinance loans for one- to four-family properties declined by approximately 1.2 million, or 33.1
percent from 2016 to 2017. Applications for refinance mortgages showed similar declines falling
from 7.2 million in 2016 to 4.9 million in 2017. Increasing interest rates were likely a main
driver of these declines. Although still low by historical standards, the average interest rates
were substantially higher in 2017 than 2016. The average rate on 30-year fixed rate conventional
conforming mortgage loans made to prime borrowers
13
started at 3.97 percent at the beginning
of 2016 and ended at 4.32 percent at the end of that year, averaging about 3.65 percent in 2016.
In contrast, it started at 4.20 percent at the beginning of 2017, fell to 3.78 percent during the
first nine months of 2017, and then began rising steadily again, ending the year at 3.99 percent,
13
This measure comes from Freddie Mac’s Primary Mortgage Market Survey and is available from the Federal
Reserve Bank of St. Louis’ Federal Reserve Economic Database (FRED) at
https://fred.stlouisfed.org/series/MORTGAGE30US
.
13 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
averaging 3.99 percent for the entire year of 2017. Rates for 15-year mortgages followed similar
patterns.
Unlike refinance mortgages, one- to four-family home-purchase originations grew by
approximately 191,000 or 4.7 percent, from 2016. This is a continuation of an upward trend
since 2011 and was the highest level of originations since 2008. However, the increase in home-
purchase originations did not offset the decline in refinance originations, resulting in an overall
reduction in total originations reported under HMDA for the year.
14
Most one- to-four-family home-purchase loans are first liens for owner-occupied properties. In
the past six years, the number of such loans grew by 77.8 percent, from a low of approximately
2.1 million in 2011 to 3.7 million in 2017, and reached its highest level since 2007 when
approximately 3.5 million of these loans were made. However, the number of first-lien, owner-
occupied home-purchase originations remained well below its peak in 2005 and below the
volume during the years preceding the housing boom (Figure 1).
15
The number of first-lien
home-purchase loans for non-owner-occupied properties—which are primarily used as rental
properties and second homes—increased by 7.9 percent, from 435,000 in 2016 to 470,000 in
2017.
14
This overall decline in total origination volume reported under HMDA could be driven in a small part by fewer DIs
reporting following the change in reporting requirements from one to 25 covered originations. However, as
discussed in the previous section, we do not believe the impact of the threshold change on the reported volume is
significant enough to alter our conclusion on the historical trends.
15
The HMDA data prior to 2004 did not provide lien status for loans, and thus the number of loans prior to 2004
includes both first- and junior-lien loans. That said, including junior-lien home-purchase loans in 2017 does not
change the conclusion that home-purchase lending in 2017 was similar to that in the mid-1990s.
14 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
FIGURE 1: NUMBER OF HOME-PURCHASE AND REFINANCE MORTGAGE ORIGINATIONS, 1994-2017
Note: The data are annual. Mortgage originations for one- to four-family owner-occupied properties, with
junior-lien loans excluded in 2004 and later, as reported under the Home Mortgage Disclosure Act.
In Table 1A, applications and originations are disaggregated by property type and loan
purpose.
16
Table 1B details nonconventional purchase and refinance loans, that is, loans with
16
Manufactured-home lending differs from lending for site-built homes, in part because many manufactured home
loans are financed as chattel-secured lending, which typically carries higher interest rates and shorter terms to
maturity than those on loans to purchase site-built homes (for pricing information on manufactured home loans,
see Tables 8A, 8B, and 9B ). This Data Point focuses almost entirely on site-built mortgage originations, which
constitute the vast majority of originations (as shown in Table 1A). That said, it is important to keep in mind that,
because manufactured homes typically are generally less expensive than site-built homes in total and on a price per
15 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
mortgage insurance or other guarantees from federal government agencies, including the
Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and the U.S.
Department of Agriculture’s Farm Service Agency and Rural Housing Service (FSA/RHS.
(Versions of Tables 1A, 1B, and 1C containing loan counts and total dollar volume by month are
available in the Excel file posted online with this Data Point.
17
) Conventional lending
encompasses all other loans, including those held in banks’ portfolios and those sold to
Government-Sponsored Enterprises (or GSEs, such as Fannie Mae and Freddie Mac).
Nonconventional loans usually involve higher loan-to-value (LTV) ratios—that is, the borrowers
provide relatively smaller down payments.
For site-built properties, nonconventional home-purchase loans decreased from 1.34 million in
2016 to 1.30 million in 2017 or about 2.7 percent, while conventional home-purchase loans rose
from 2.12 million to 2.29 million or about 7.9 percent. The nonconventional share of first-lien
home-purchase loans for one- to four-family, owner-occupied, site-built properties stood at
about 36 percent in 2017, down slightly from 2016 and down from a peak of 54 percent in 2009
(Figure 2).
Figure 2 shows that the marked decline in the nonconventional share since 2009 reflects a
decrease in the FHA share of loans, while the VA and FSA/RHS shares have been steadier.
Fluctuations in the FHA share appear to be driven in part by changes in the up-front and annual
mortgage insurance premiums (MIPs) that the FHA charges borrowers. For example, between
October 2010 and April 2013, the annual MIP for a typical home-purchase loan more than
doubled, from 0.55 percent of the loan amount to 1.35 percent.
18
FHA’s market share tends to be
lower in periods when relatively higher premiums are charged.
square foot basis, they provide a low-cost housing option for households with more moderate incomes.
17
This file is available at https://www.consumerfinance.gov/data-research/research-reports/cfpb-data-point-
mortgage-market-activity-and-trends/.
18
Changes to the FHA’s insurance premium, including up-front and annual MIPs over time have been documented in
detail in the FHA’s annual Actuarial Review of the Mutual Mortgage Insurance Fund. For the most recent complete
list, see FY 2017 Actuarial Review of Forward Portfolio available at
16 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
FIGURE 2: NONCONVENTIONAL SHARE OF HOME-PURCHASE MORTGAGE ORIGINATIONS, 1994-2017
Note: The data are annual. Home-purchase mortgage originations for one- to four-family owner-
occupied properties, with junior liens excluded in 2004 and later. Nonconventional loans are those
insured by the Federal Housing Administration (FHA), or backed by the guarantees from the U.S.
Department of Veterans Affairs (VA), the Farm Service Agency (FSA), or the Rural Housing Service
(RHS).
In addition to loan applications, the HMDA data include details about preapproval requests for
home-purchase loans. As shown in Table 1C, lenders reported approximately 481,000
preapproval requests with 22.2 percent of these requests being denied. In addition,
https://www.hud.gov/sites/dfiles/Housing/documents/ActuarialMMIFForward2017.pdf. A typical FHA home-
purchase loan has an LTV of over 95 percent and a loan term longer than 15 years.
17 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
approximately 7.5 percent of these preapproval requests were approved but the applicants did
not take further action. This is likely an underestimate, however, as reporters are not required to
report preapproval requests that they approve but are not acted on by the potential borrower.
HMDA data also include information on loans purchased by reporting institutions during the
reporting year, although the purchased loans may have been originated before 2017. Table 1C
shows that lenders purchased 2.1 million loans from other institutions in 2017.
18 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 1A: APPLICATIONS AND ORIGINATIONS, 2004-2017 (IN THOUSANDS)
Purchase loans,
1-4 family
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total applications
(1)
9,804 11,685 10,929 7,609 5,060 4,217 3,848 3,650 4,023 4,586 4,679 5,196 5,694 6,018
Total originations 6,437 7,391 6,740 4,663 3,139 2,793 2,547 2,430 2,742 3,139 3,248 3,676 4,046 4,237
First lien, owner
occupied
4,789 4,964 4,429 3,454 2,628 2,455 2,219 2,073 2,343 2,703 2,815 3,210 3,544 3,687
Site-built,
conventional
4,107 4,425 3,912 2,937 1,581 1,089 1,006 999 1,251 1,630 1,741 1,899 2,123 2,291
Site-built, non-
conventional
553 411 386 394 951 1,302 1,152 1,019 1,033 1,007 1,006 1,235 1,340 1,303
Manufactured,
conventional
106 100 101 95 68 43 45 40 44 51 51 56 59 67
Manufactured,
non-conventional
24 27 30 29 28 21 17 15 14 14 16 20 22 26
First lien, non-owner
occupied
857 1,053 880 607 412 292 285 314 355 388 378 406 435 470
Junior lien, owner
occupied
738 1,224 1,269 552 93 44 42 41 43 46 53 58 65 79
Junior lien, non-
owner occupied
53 150 162 50 6 2 2 1 1 1 2 2 2 2
19 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Refinance loans,
1-4 family
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total applications
(1)
16,085 15,907 14,046 11,566 7,805 9,983 8,437 7,422 10,526 8,564 4,526 5,957 7,187 4,938
Total originations 7,591 7,107 6,091 4,818 3,491 5,772 4,971 4,330 6,668 5,141 2,370 3,234 3,759 2,516
First lien, owner
occupied
6,497 5,770 4,469 3,659 2,934 5,301 4,519 3,856 5,930 4,393 2,001 2,847 3,375 2,201
Site-built,
conventional
6,115 5,541 4,287 3,407 2,363 4,264 3,837 3,315 4,971 3,634 1,608 2,155 2,529 1,630
Site-built, non-
conventional
297 151 110 180 506 979 646 508 917 715 363 661 812 539
Manufactured,
conventional
77 70 60 56 42 36 25 25 31 32 22 21 20 19
Manufactured,
non-conventional
7 8 12 16 22 22 10 9 11 12 8 10 14 13
First lien, non-owner
occupied
618 582 547 474 330 350 359 394 660 673 310 329 329 252
Junior lien, owner
occupied
464 729 1,036 661 219 115 88 74 73 70 55 55 52 60
Junior lien, non-
owner occupied
13 25 39 23 9 7 6 5 5 5 4 4 3 3
Home
improvement
loans, 1-4 family
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total applications
(1)
2,200
2,544
2,481
2,218
1,413
832
671
675
779
833
846
926
1,005
1,052
Total originations
964
1,096
1,140
958
573
390
342
335
382
425
411
477
536
548
Multifamily loans
(2)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total applications
(1)
61
58
52
54
43
26
26
35
47
51
46
52
50
48
Total originations
48
45
40
41
31
19
19
27
37
40
35
41
40
38
20 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
All loan
applications and
originations
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total applications
(1)
28,151
30,193
27,508
21,448
14,320
15,057
12,981
11,782
15,375
14,034
10,097
12,132
13,937
12,056
Total originations
15,040
15,638
14,011
10,480
7,234
8,974
7,879
7,122
9,828
8,744
6,064
7,428
8,381
7,339
Note: Components may not sum to totals because of rounding.
(1) Applications by year of action, as opposed to year of application submission. Applications include those withdrawn and those closed for incompleteness.
(2) A multifamily property consists of five or more units.
Source: Here and in subsequent tables and figures, except as noted, Federal Financial Institutions Examination Council, data reported under the Home
Mortgage Disclosure Act (www.ffiec.gov/hmda
).
TABLE 1B: SHARE OF 1-4 FAMILY SITE-BUILT, NONCONVENTIONAL LOAN ORIGINATIONS, 2004-2017 (PERCENT)
Loan purpose and type 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Purchase: FHA
74.6
68.6
66.0
65.8
78.9
77.0
77.4
70.9
68.0
62.8
58.3
64.6
64.6
62.2
Purchase: VA
21.6
26.7
29.0
27.1
15.2
13.9
15.2
18.2
19.9
24.2
28.3
26.0
26.9
28.7
Purchase: FSA/RHS
3.9
4.7
5.0
7.1
5.9
9.0
7.4
10.9
12.0
13.1
13.3
9.4
8.5
9.1
Refinance: FHA
68.3
77.3
87.5
91.5
92.2
83.7
79.3
63.2
61.2
61.2
47.6
59.6
49.5
53.3
Refinance: VA
31.4
22.4
12.3
8.3
7.6
15.9
20.3
35.9
37.8
37.6
51.9
40.2
50.1
46.0
Refinance: FSA/RHS
0.2
0.3
0.2
0.1
0.2
0.4
0.4
0.9
0.9
1.2
0.5
0.3
0.4
0.8
Note: FHA is Federal Housing Administration; VA is U.S. Department of Veterans Affairs; FSA is Farm Service Agency; RHS is Rural Housing Service.
21 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 1C: PRE-APPROVALS AND LOAN PURCHASES, 2004-2017 (IN THOUSANDS)
Memo 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Purchased loans
5,142
5,868
6,236
4,821
2,935
4,301
3,231
2,939
3,163
2,788
1,800
2,126
2,232
2,087
Requests for preapproval
(1)
1,068
1,260
1,175
1,065
735
559
440
429
474
474
496
531
514
481
Requests for preapproval
that were approved but not
acted on
167 166 189 197 99 61 53 55 64 69 64 63 60 36
Requests for preapproval
that were denied
171 231 222 235 177 155 117 130 149 123 125 115 115 107
(1) Consists of all requests for preapproval. Preapprovals are not related to a specific property and thus are distinct from applications.
22 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
4. Mortgage outcomes by
demographic groups
HMDA data are a key resource to help policymakers and the broader public understand the
distribution of mortgage credit across demographic groups. The next set of tables provides
information on loan shares, product usage, denials, and mortgage pricing for groups defined by
applicant income, neighborhood income, and applicant race and ethnicity (Tables 2–8). With
the exception of Tables 8A and 8B, which include loans for manufactured homes (and contain
information by type of loan rather than by applicant or neighborhood characteristic), these
tables focus on first-lien home-purchase and refinance loans for one- to four-family, owner-
occupied, site-built properties. Such loans accounted for approximately 78.5 percent of all
HMDA originations in 2017.
4.1 Distribution of home loans across
demographic groups
Tables 2A and 2B show different groups’ shares of home-purchase and refinance loans
respectively and how these shares have changed over time. In general, the shares of home-
purchase and refinance loans (conventional and nonconventional combined) increased for black
23 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
and low-or-moderate income (LMI) borrowers
19
in 2017, as well as for borrowers in LMI
neighborhoods. For example, 6.4 percent of home-purchase loans in 2017 were to black
borrowers compared with 6.0 percent in 2016. This marks four straight years of increases for
black borrowers’ share of home-purchase loans. Similarly, the share of refinance loans to black
borrowers increased to 6.0 percent in 2017 from 5.0 percent in 2016.
20
In terms of borrower income, the share of refinance loans that was made to LMI borrowers rose
from 16.9 percent in 2016 to 22.9 percent in 2017, while the share of purchase loans to LMI
borrowers rose very modestly, from 26.2 percent to 26.3 percent.
The HMDA data also shed light on borrowing patterns across neighborhoods, defined as census
tracts.
21
The share of home-purchase loans originated in LMI neighborhoods rose from 14.1
percent in 2016 to 16.1 percent in 2017. Conversely, the share of home-purchase lending from
high-income census tracts decreased slightly from 40.0 percent in 2016 to 39.6 percent in 2017.
19
In accordance with definitions used by the federal bank supervisory agencies to enforce the Community
Reinvestment Act, LMI borrowers are defined as those with incomes of less than 80 percent of estimated current
area median family income (AMFI). Middle-income borrowers have incomes of at least 80 percent and less than
120 percent of AMFI, and high-income borrowers have incomes of at least 120 percent of AMFI. AMFI is estimated
based on the incomes of residents of the metropolitan area or nonmetropolitan portion of the state in which the
loan-securing property is located. Definitions for LMI, middle-income, and high-income neighborhoods are
identical to those for LMI, middle-income, and high-income borrowers but are based on the ratio of census-tract
median family income to AMFI measured from the census data. For AMFI estimates, see Federal Financial
Institutions Examination Council (2017), “FFIEC Median Family Income Report,” available at
https://www.ffiec.gov/Medianincome.htm. Note that AMFI estimates tend to reflect lagged income levels. During
times when incomes are changing rapidly, such as during the Great Recession, AMFI estimates can be significantly
understated or overstated.
20
The bottom of Tables 2A and 2B provide the total loan counts for each year, and thus the number of loans to a
given group in a given year can be easily derived. For example, the number of home-purchase loans to Asians in
2017 was about 208,000, derived by multiplying 3.594 million loans by 5.8 percent.
21
The 2017 HMDA data reflect property locations using the census-tract geographic boundaries created for the 2010
decennial census as well as recent updates to the list of metropolitan statistical areas (MSAs) published by the Office
of Management and Budget. The first year for which the HMDA data use this most recent list of MSAs is 2015. For
further information, see Federal Financial Institutions Examination Council (2013), “OMB Announcement –
Revised Delineations of MSAs,” press release, February 28, available at
https://www.ffiec.gov/hmda/OMB_MSA.htm.
24 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Census-tract median family income estimates published by the FFIEC to accompany the public
HMDA data (and used for this Data Point) were revised in 2012 and 2017. Therefore, in tables
2A, 2B and all subsequent tables where neighborhood income categories are used, neighborhood
income results in 2017 are not perfectly comparable with those in 2016 and earlier. Similarly,
the 2012 through 2016 results by neighborhood income are not perfectly comparable with those
from 2011 and earlier. The current tract demographic measures are based on 2011-2015
American Community Survey (ACS) five-year estimates, whereas the 2012–2016 data relied on
2006-2010 ACS five-year estimates, and 2004-2011 data relied on 2000 Census data. In
addition, the Office of Management and Budget updates metropolitan area delineations over
time, so caution should be exercised in comparing relative income measurements over time.
22
22
For details on the changes of census information used in this Data Point, see FFIEC Census Information Sheets at
https://www.ffiec.gov/census/censusInfo.aspx.
25 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 2A: DISTRIBUTION OF HOME-PURCHASE LOANS, BY BORROWER AND NEIGHBORHOOD CHARACTERISTICS, 2004-2017 (PERCENT
EXCEPT AS NOTED)
Borrower race and
ethnicity
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Asian
4.8
5.0
4.5
4.5
4.9
5.3
5.5
5.2
5.3
5.7
5.4
5.3
5.5
5.8
Black or African American
7.1
7.7
8.7
7.6
6.3
5.7
6.0
5.5
5.1
4.8
5.2
5.5
6.0
6.4
Hispanic white
7.6
10.5
11.7
9.0
7.9
8.0
8.1
8.3
7.7
7.3
7.9
8.3
8.8
8.8
Non-Hispanic white
57.1
61.7
61.2
65.4
67.5
67.9
67.6
68.7
70.0
70.2
69.1
68.1
66.4
64.9
Other minority
(2)
1.4
1.3
1.1
1.0
0.9
0.9
0.9
0.8
0.8
0.7
0.8
0.8
0.8
0.9
Joint
2.3
2.3
2.3
2.5
2.8
2.8
2.7
2.8
2.9
3.1
3.4
3.5
3.6
3.7
Missing
19.8
11.5
10.5
10.1
9.6
9.3
9.1
8.6
8.2
8.2
8.3
8.5
8.9
9.6
Borrower income
(3)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
27.7
24.6
23.6
24.6
28.0
36.6
35.4
34.4
33.3
28.5
27.0
27.9
26.2
26.3
Middle
26.9
25.7
24.7
25.1
27.0
26.6
25.6
25.2
25.1
25.2
25.6
26.1
26.4
26.7
High
41.4
45.5
46.7
46.9
42.9
34.6
37.3
38.8
40.0
44.7
46.1
44.9
46.4
46.0
Income not used or not
applicable
4.0 4.2 5.0 3.4 2.1 2.2 1.7 1.6 1.5 1.6 1.3 1.1 1.0 1.0
Neighborhood income
(4)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
14.5
15.1
15.7
14.4
13.2
12.6
12.1
11.0
12.8
12.7
13.3
13.5
14.1
16.1
Middle
48.7
49.2
49.5
49.6
49.8
50.2
49.5
49.4
43.6
43.7
44.6
45.2
45.8
44.2
High
35.8
34.7
33.7
35.1
35.9
35.8
37.7
39.1
43.2
43.2
41.8
41.0
40.0
39.6
26 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Memo 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Number of home-
purchase loans
(thousands)
4,660 4,836 4,298 3,331 2,533 2,391 2,157 2,018 2,284 2,638 2,747 3,134 3,463 3,594
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. Rows may not sum to 100 because of rounding or, for the distribution by
neighborhood income, because property location is missing.
(1) Applications are placed in one category for race and ethnicity. The application is designated as joint if one applicant was reported as white and the other
was reported as one or more minority races or if the application is designated as white with one Hispanic applicant and one non-Hispanic applicant. If there
are two applicants and each reports a different minority race, the application is designated as two or more minority races. If an applicant reports two races
and one is white, that applicant is categorized under the minority race. Otherwise, the applicant is categorized under the first race reported. "Missing" refers
to applications in which the race of the applicant(s) has not been reported or is not applicable or the application is categorized as white but ethnicity has not
been reported.
(2) Consists of applications by American Indians or Alaska Natives, Native Hawaiians or other Pacific Islanders, and borrowers reporting two or more
minority races.
(3) The categories for the borrower-income group are as follows: Low- or moderate-income (or LMI) borrowers have income that is less than 80 percent of
estimated current area median family income (AMFI), middle-income borrowers have income that is at least 80 percent and less than 120 percent of AMFI,
and high-income borrowers have income that is at least 120 percent of AMFI.
(4) The categories for the neighborhood-income group are based on the ratio of census-tract median family income to area median family income from the
2011-15 American Community Survey five-year estimates for 2017, the 2006-10 American Community Survey five-year estimates for 2012-16 and from the
2000 Census for 2004-11, per the Federal Financial Institutions Examination Council (FFIEC)’s policy. The three categories have the same cutoffs as the
borrower-income groups.
27 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 2B: DISTRIBUTION OF REFINANCE LOANS, BY BORROWER AND NEIGHBORHOOD CHARACTERISTICS, 2004-2017 (PERCENT EXCEPT
AS NOTED)
Borrower race and
ethnicity
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Asian
3.5
2.9
3.0
3.1
3.1
4.1
5.2
5.4
5.5
4.7
4.3
5.0
5.5
4.0
Black or African American
7.4
8.3
9.6
8.4
6.0
3.5
2.9
3.1
3.3
4.4
5.4
5.0
5.0
6.0
Hispanic white
6.2
8.6
10.1
8.7
5.3
3.2
3.0
3.3
3.9
5.0
6.2
6.3
6.2
6.8
Non-Hispanic white
57.2
60.9
59.6
62.7
70.7
74.6
74.3
73.5
72.5
70.5
67.8
67.2
65.2
63.3
Other minority
(2)
1.4
1.4
1.3
1.1
0.8
0.6
0.5
0.6
0.6
0.7
0.9
0.8
0.9
1.0
Joint
2.1
2.1
1.9
2.0
2.2
2.6
2.7
2.8
3.1
3.1
3.2
3.3
3.4
3.3
Missing
22.1
15.7
14.6
14.1
11.9
11.4
11.4
11.3
11.1
11.6
12.2
12.4
13.8
15.7
Borrower income
(3)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
26.2
25.5
24.7
23.3
23.4
19.6
18.9
19.2
19.6
21.1
22.1
19.0
16.9
22.9
Middle
26.3
26.8
26.1
25.5
25.4
22.4
22.5
21.3
21.8
21.7
21.9
21.0
20.3
23.3
High
38.8
40.8
43.7
46.0
44.6
45.6
49.5
48.1
47.6
46.3
44.9
45.2
47.5
44.0
Income not used or not
applicable
8.7 6.9 5.5 5.2 6.6 12.4 9.1 11.4 10.9 11.0 11.1 14.8 15.3 9.7
Neighborhood income
(4)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
15.3
16.5
17.9
16.1
11.9
7.8
7.2
7.4
10.1
12.1
13.3
12.3
12.0
15.5
Middle
50.0
51.3
52.0
52.2
51.9
47.5
46.1
46.1
41.9
43.7
45.3
43.8
43.4
44.6
High
33.9
31.6
29.4
31.0
35.2
43.5
46.0
46.0
47.6
43.9
41.3
43.7
44.4
39.7
28 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Memo 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Number of refinance loans
(thousands)
6,412
5,692
4,397
3,588
2,869
5,243
4,483
3,823
5,888
4,349
1,971
2,816
3,341
2,170
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. Rows may not sum to 100 because of rounding or, for the distribution by
neighborhood income, because property location is missing.
(1) See Table 2A, note 1.
(2) See Table 2A, note 2.
(3) See Table 2A, note 3.
(4) See Table 2A, note 4.
29 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
4.2 Average loan size by demographic
group
Tables 3A and 3B show the average size of home-purchase and refinance loans by different
groups over time.
23
All dollar amounts are reported in nominal terms. The average loan amounts
differ significantly across racial and ethnic groups. Asian borrowers took out the largest loans,
averaging approximately $390,000 for home purchases and $368,000 for refinancings in 2017,
whereas loans to black borrowers were for the smallest amounts, averaging approximately
$224,000 for home purchases and $213,000 for refinancings.
24
Average home-purchase loan amounts have followed historical trends in home prices, rising
during the mid-2000s, falling sharply through 2008 and 2009, and then beginning to recover
since about 2010.
25
Trends in loan amounts differ substantially by race and ethnicity, which are
likely driven by localized differences in home price paths where these populations live, incomes
of the respective populations, and other factors that may affect the sizes of the properties these
groups are purchasing. The average home-purchase loan to a Hispanic white borrower increased
23
The calculation of average loan size excludes a small number of outlier loans for which an incorrect loan value was
likely reported.
24
Median loan amounts (not shown in tables) followed similar trends as average loan amounts.
25
Housing prices continued their general upward trend during 2017. The Federal Housing Finance Agency’s
quarterly Purchase-Only House Price Index increased each quarter during 2017 and was up 6.7 percent for the year.
Following a significant drop during and after the Great Recession, the price increases for 2017 continue a consistent
upward trend for the last six years. The housing price increases seen at the national level during 2017 showed
considerable variation across geography ranging from a slight 0.55 percent decrease in Mississippi to a 12.1 percent
increase in Washington (not-seasonally adjusted, year-over-year comparison). All of these data are available from
the Federal Housing Finance Agency at https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-
Datasets.aspx.
30 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
from $220,000 in 2016 to $230,000 in 2017, which is still below the peak of $238,000 in 2006.
Hispanic whites and “other minorities” are the two race/ethnicity groups for which this measure
has yet to recover to pre-crisis levels; average home-purchase loan amounts returned to pre-
crisis levels (in nominal terms) by 2014 for Asians and blacks and by 2013 for non-Hispanic
whites.
The average home-purchase loan amounts increased across income levels. The average home-
purchase loan amount increased 4.1 percent from $146,000 in 2016 to $152,000 in 2017 for
LMI borrowers. Loan amounts increased by 3.9 percent for middle-income borrowers and 4.1
percent for high-income borrowers.
31 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 3A: AVERAGE VALUE OF HOME-PURCHASE LOANS, BY BORROWER AND NEIGHBORHOOD CHARACTERISTICS, 2004-2017
(THOUSANDS OF DOLLARS, NOMINAL, EXCEPT AS NOTED)
Borrower race and
ethnicity
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Asian
280
316
326
334
299
276
293
291
304
328
344
360
373
390
Black or African American
166
183
197
197
184
172
174
174
179
193
199
209
217
224
Hispanic white
189
224
238
220
186
168
168
168
176
190
198
209
220
230
Non-Hispanic white
193
211
216
222
209
195
204
204
213
226
231
239
246
254
Other minority
(2)
206
240
257
245
216
196
201
198
206
219
229
241
249
257
Joint
233
255
261
269
255
248
263
261
274
289
293
302
311
322
Missing
216
248
261
280
265
242
256
262
279
298
293
303
308
317
Borrower income
(3)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
114
116
117
124
128
129
128
125
131
132
132
141
146
152
Middle
165
170
170
176
182
187
189
184
192
194
193
204
209
217
High
281
306
313
317
298
291
303
302
313
323
328
341
345
359
Income not used or not
applicable
208 235 254 257 211 189 204 221 231 258 275 292 312 332
Neighborhood income
(4)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
159
180
189
188
175
160
164
163
158
171
178
188
199
204
Middle
172
190
197
196
186
174
177
173
178
191
196
206
216
224
High
258
284
294
301
277
257
270
271
282
300
306
316
324
340
32 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Memo 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All home-purchase loans
201
221
228
232
217
202
210
210
221
235
240
249
257
267
Conventional jumbo loans
(percent of originations)
(5)
11.2 12.7 9.4 6.8 2.3 1.3 1.7 2.2 3.0 4.0 4.8 5.3 5.2 5.5
Conventional jumbo loans
(percent of loaned
dollars)
(5)
29.4 32.5 26.8 21.8 10.1 6.2 7.5 9.5 12.0 14.6 16.5 17.3 16.9 17.6
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes.
(1) See Table 2A, note 1.
(2) See Table 2A, note 2.
(3) See Table 2A, note 3.
(4) See Table 2A, note 4.
(5) Fraction of conventional plus nonconventional loans that are conventional and have loan amounts in excess of the single-family conforming loan-size
limits for eligibility for purchase by the government-sponsored enterprises.
TABLE 3B: AVERAGE VALUE OF REFINANCE LOANS, BY BORROWER AND NEIGHBORHOOD CHARACTERISTICS, 2004-2017 (THOUSANDS
OF DOLLARS, NOMINAL, EXCEPT AS NOTED)
Borrower race and
ethnicity
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Asian
274
325
370
368
321
298
313
309
308
304
341
363
368
368
Black or African American
151
180
199
192
173
184
180
174
181
171
174
199
212
213
Hispanic white
178
219
252
244
193
190
191
183
190
180
190
214
228
223
Non-Hispanic white
180
205
221
222
205
209
210
208
212
206
216
239
251
238
Other minority
(2)
190
229
269
258
211
217
218
207
213
201
213
240
252
245
Joint
210
246
265
262
243
247
254
249
254
249
266
292
304
290
Missing
194
226
246
250
242
243
248
253
253
244
245
268
277
259
33 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Borrower income
(3)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
114
124
124
126
129
138
133
128
135
128
123
136
143
143
Middle
162
181
183
181
180
185
180
174
182
171
174
193
202
200
High
256
294
320
312
276
268
274
281
277
276
301
324
330
329
Income not used or not
applicable
150 178 240 236 192 203 202 185 211 193 198 229 243 225
Neighborhood income
(4)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
142
169
188
185
164
173
173
167
163
153
157
182
196
185
Middle
158
184
201
198
182
184
182
175
181
173
180
201
214
204
High
245
282
313
311
272
259
265
269
269
270
290
311
321
316
Memo 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All refinance loans
185
212
232
231
212
216
220
218
221
213
222
247
259
246
Conventional jumbo loans
(percent of originations)
(5)
9.2 11.4 10.2 7.5 2.0 0.9 1.6 2.4 2.2 3.0 4.2 4.9 4.6 4.3
Conventional jumbo loans
(percent of loaned
dollars)
(5)
25.8 29.6 28.3 23.0 9.0 4.1 6.9 10.7 9.2 12.7 16.5 16.8 15.7 16.4
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes.
(1) See Table 2A, note 1.
(2) See Table 2A, note 2.
(3) See Table 2A, note 3.
(4) See Table 2A, note 4.
(5) Fraction of conventional plus nonconventional loans that are conventional and have loan amounts in excess of the single-family conforming loan-size
limits for eligibility for purchase by the government-sponsored enterprises.
34 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
4.3 Jumbo lending
The share of conventional jumbo loans—those with loan amounts in excess of the GSEs’
conforming loan limits and with no other government guarantee—was about 5.2 percent in
2017, up slightly from approximately 5.1 percent in 2016. As shown in Table 3A, conventional
jumbo loans made up 5.5 percent of all first-lien home-purchase loans for owner-occupied, one-
to four-family, site-built homes in 2017, up from 5.2 percent in 2016.
26
Among refinance loans
shown in Table 3B, the share that was conventional jumbo loans decreased to 4.3 percent in
2017 from 4.6 percent in 2016. Because of their larger size, conventional jumbo loans made up a
correspondingly larger share of the dollar volume of mortgages, accounting for 17.6 percent of
home-purchase loans and 16.4 percent of refinance loans in 2017.
26
A loan qualifies as jumbo in Tables 3A and 3B if the loan amount is above the GSEs’ conforming loan-size limit for
a single-family home for that year and location. The conforming loan-size limit was mostly uniform across the
nation prior to 2008. The limits in Alaska, Hawaii, the U.S. Virgin Islands, and Guam were 50 percent higher than
in the nation at large. For the years 2008 and thereafter, designated higher-cost areas had elevated limits. For 2017,
the general conforming loan-size limit was $424,100, and the maximum high-cost loan-size limit was $636,100
(and 50 percent higher in Alaska, Hawaii, the U.S. Virgin Islands, and Guam). Conforming loan-size limits increase
with the number of units that make up the property, but the HMDA data do not differentiate between properties
from one to four units. Some loans in the tables may therefore have been misclassified as jumbo despite being
eligible for purchase by a GSE. For 2017 HMDA data, HMDA requires lenders to report the loan amount rounded in
nearest thousands. The conforming loan limits published by Federal Housing Finance Agency (FHFA) may be set in
hundreds of dollars. For this exercise, we rounded FHFA conforming loan limits to the nearest thousand to match
with the HMDA reporting requirement.
35 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
4.4 Variation across demographic groups in
nonconventional loan use
Table 4A shows that black and Hispanic white borrowers were much more likely to use
nonconventional home-purchase loans (FHA, VA, RHS, and FSA loans) compared with other
racial and ethnic groups. In 2017, about 64.9 percent of blacks and 55.5 percent of Hispanic
whites took out a nonconventional home-purchase loan, whereas about 33.1 percent of non-
Hispanic whites and just 13.4 percent of Asians did so. Use of nonconventional home-purchase
loans declined slightly for each racial/ethnic group from 2016 to 2017 and has fallen from the
peaks in 2009 and 2010, when more than four-fifths of black and three-fourths of Hispanic
white borrowers and a little over half of non-Hispanic white borrowers took out
nonconventional loans.
Use of nonconventional home-purchase loans is also more prevalent for borrowers with lower
incomes or in lower income neighborhoods. In 2017, about 47.4 percent of LMI home-purchase
borrowers and 46.2 percent of those borrowing to purchase homes in LMI neighborhoods used
nonconventional loans, compared with about 25.2 percent of high-income borrowers and 26.2
percent of borrowers in high-income neighborhoods.
As was the case for purchase loans, black and lower-income borrowers are more likely than
other groups to refinance through a nonconventional loan. However, the differences are not as
stark as for home-purchase loans. In addition, nonconventional loans are less prevalent in
refinance lending overall, and use of nonconventional refinance loans does not show the same
consistent downward trend for all racial and income groups in recent years observed for
nonconventional home-purchase loans.
27
27
The reported nonconventional share of refinance loans is lower than the actual share for the groups categorized by
borrower income because, in most nonconventional refinance loans, income is not reported. Thus, when income is
reported on a refinance loan, the loan is likely to be conventional.
36 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Greater reliance on nonconventional loans may reflect the relatively low down-payment
requirements of the FHA and VA lending programs, which serve the needs of borrowers who
have few assets to meet down-payment and closing-cost requirements.
28
The patterns of product
incidence could also reflect the behavior of lenders to some extent; for example, concerns have
been raised about the possibility that lenders steer borrowers in certain neighborhoods toward
such loans.
29
28
Findings of the Federal Reserve Board’s Survey of Consumer Finances for 2016 indicate that income, liquid asset
levels, and financial wealth holdings for minorities and lower-income groups are substantially smaller than they are
for non-Hispanic white borrowers or higher-income populations, and the long-standing and substantial wealth
disparities between families of different racial and ethnic groups have changed little in the past few years. See Board
of Governors of the Federal Reserve System, “Recent Trends in Wealth-Holding by Race and Ethnicity: Evidence
from the Survey of Consumer Finances,”
available at https://www.federalreserve.gov/econres/scfindex.htm.
Similar findings on previous years’ Survey of Consumer Finances are also available on the same site.
29
Agarwal, Sumit, Gene Amromin, Itzhak Ben-David, Douglas D. Evanoff. “Loan Product Steering in Mortgage
Markets,” NBER Working Paper No. 22696, September 2016, available at http://www.nber.org/papers/w22696
.
37 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 4A: NONCONVENTIONAL SHARE OF HOME-PURCHASE LOANS, BY BORROWER AND NEIGHBORHOOD CHARACTERISTICS, 2004-
2017 (PERCENT)
Borrower race and
ethnicity
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Asian
2.9
1.8
2.1
2.6
13.4
26.1
26.6
25.8
21.9
16.1
14.7
16.6
15.6
13.4
Black or African American
21.7
14.3
13.6
21.7
64.1
82.0
82.9
80.3
77.2
70.8
68.0
70.2
68.5
64.9
Hispanic white
13.7
7.5
7.0
12.4
51.4
75.4
77.0
74.1
70.7
63.1
59.6
62.7
59.8
55.5
Non-Hispanic white
11.1
8.9
9.5
11.5
35.4
52.0
50.3
47.4
42.2
35.5
33.4
36.0
35.2
33.1
Other minority
(2)
14.0
9.3
9.4
14.8
48.4
67.6
68.8
65.9
62.2
55.5
54.0
55.3
54.2
52.1
Joint
16.9
12.8
14.4
17.2
46.4
59.4
56.3
53.6
48.9
42.1
41.3
43.8
43.1
40.8
Missing
11.3
5.1
5.7
8.8
32.7
50.6
49.4
45.9
39.4
31.9
32.2
34.9
34.7
31.9
Borrower income
(3)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
20.3
15.2
14.9
16.0
46.1
65.3
66.6
64.5
59.7
52.5
50.3
53.4
51.7
47.4
Middle
14.3
11.0
12.6
16.7
46.1
60.4
59.3
57.0
51.5
45.6
44.8
47.7
47.6
45.0
High
5.3
3.9
4.9
7.5
26.7
38.5
37.2
34.4
29.5
25.1
24.2
26.3
26.7
25.2
Neighborhood income
(4)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
15.8
9.7
9.6
13.8
45.4
64.3
65.0
61.2
57.9
49.9
48.1
50.4
48.8
46.2
Middle
14.1
10.2
10.8
14.2
42.7
59.8
59.4
56.9
52.1
44.7
43.1
45.6
44.6
41.7
High
7.1
5.4
6.1
7.6
27.4
43.4
42.0
39.5
34.6
28.2
26.1
29.0
28.4
26.2
38 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Memo 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All borrowers
11.9
8.5
9.0
11.8
37.6
54.4
53.4
50.5
45.2
38.2
36.6
39.4
38.7
36.3
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. Excludes applications where no credit decision was made.
Nonconventional loans are those insured by the Federal Housing Administration or backed by guarantees from the U.S. Department of Veterans Affairs,
the Farm Service Agency, or the Rural Housing Service.
(1) See Table 2A, note 1.
(2) See Table 2A, note 2.
(3) See Table 2A, note 3.
(4) See Table 2A, note 4.
TABLE 4B: NONCONVENTIONAL SHARE OF REFINANCE LOANS, BY BORROWER AND NEIGHBORHOOD CHARACTERISTICS, 2004-2017
(PERCENT)
Borrower race and
ethnicity
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Asian
1.2
0.7
0.6
1.0
4.6
5.7
4.7
4.3
5.9
6.7
6.8
9.8
8.3
10.3
Black or African American
11.1
5.8
4.4
10.2
39.2
53.8
42.0
37.8
38.6
37.1
39.1
49.4
53.0
47.4
Hispanic white
5.6
2.6
1.9
3.9
20.5
36.2
28.2
22.9
26.9
25.8
21.2
32.1
30.5
26.4
Non-Hispanic white
4.0
2.4
2.6
4.9
15.9
16.8
13.6
12.2
14.2
14.8
16.3
21.0
21.7
22.4
Other minority
(2)
5.5
3.4
2.4
4.9
20.0
28.3
23.3
21.9
25.5
24.9
25.0
32.6
36.7
34.0
Joint
7.5
3.7
3.4
6.2
19.5
21.1
16.6
16.3
20.1
20.5
25.5
28.0
29.3
29.5
Missing
4.2
1.9
1.7
4.1
18.7
19.0
12.5
13.6
16.5
16.7
21.5
25.5
27.7
27.7
Borrower income
(3)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
2.3
1.6
2.9
5.7
18.3
16.6
14.1
11.5
9.3
9.3
13.0
16.5
18.4
23.5
Middle
1.7
1.3
2.7
6.2
19.6
13.2
12.3
10.9
8.9
9.5
13.2
14.8
15.3
21.3
High
0.8
0.6
1.1
2.7
10.6
7.2
6.8
6.3
5.5
6.1
8.8
9.2
9.2
14.2
39 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Neighborhood income
(4)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Low or moderate
5.9
3.2
2.9
6.3
24.6
31.2
23.1
19.7
22.2
22.1
22.4
29.5
30.4
30.4
Middle
5.2
3.0
2.9
5.8
20.2
22.3
17.5
16.1
18.4
19.0
20.9
26.8
28.2
27.8
High
2.9
1.7
1.6
3.0
11.3
12.1
10.0
9.3
11.7
12.4
14.5
18.5
19.0
19.4
Memo 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All borrowers
4.6
2.6
2.5
5.0
17.6
18.7
14.4
13.3
15.6
16.4
18.4
23.5
24.3
24.9
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. Excludes applications where no credit decision was made.
Nonconventional loans are those insured by the Federal Housing Administration or backed by guarantees from the U.S. Department of Veterans Affairs,
the Farm Service Agency, or the Rural Housing Service.
(1) See Table 2A, note 1.
(2) See Table 2A, note 2.
(3) See Table 2A, note 3.
(4) See Table 2A, note 4.
40 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
4.5 Denial rates and reasons
Denial rates generally continued a downward trend in 2017. The overall denial rate on
applications for home-purchase loans was 10.8 percent in 2017, 0.7 percentage points lower
than in 2016 (Table 5A). The decline in 2017 continues a general trend of declining denial rates
for home-purchase mortgages in the recent years.
30
The overall denial rate on applications for
refinance loans (Table 5B) declined from 29.9 percent in 2016 to 26.4 percent in 2017. Overall,
refinance applications were thus denied at about 2.5 times the rate of home-purchase loan
applications.
Although denial rates have generally declined, the declines were not equally steep across all
types of loans. For example, for conventional home-purchase loan applications, the denial rate
of 9.6 percent in 2017 was about half the rate of 2007, while the denial rate for nonconventional
home-purchase loan applications of 12.8 percent in 2017 was about 21 percent lower than in
2007.
Variations in raw denial rates over time reflect not only changes in credit standards, but also
changes in the demand for credit and in the composition of borrowers applying for mortgages.
31
For example, the denial rate on applications for conventional home-purchase loans was lower in
2017 than during the housing boom years, even though most measures of credit availability
30
Denial rates are calculated as the number of denied loan applications divided by the total number of applications,
excluding withdrawn applications and application files closed for incompleteness.
31
For instance, according to the Senior Loan Officer Opinion Survey on Bank Lending Practices, mortgage credit
conditions continued to slowly ease, but credit remained more difficult to obtain for individuals with lower credit
scores or hard-to-document incomes. Much of the easing in mortgage underwriting that occurred over the course of
2017 was for loans that were eligible for purchase by the GSEs. The survey is available on the Federal Reserve
Board’s website at https://www.federalreserve.gov/data/sloos.htm.
41 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
suggest that credit standards are tighter today. This may stem from a relatively large drop in
applications from riskier applicants.
32
As in past years, black, Hispanic white, and “other minority” borrowers had notably higher
denial rates in 2017 than non-Hispanic white borrowers, while denial rates for Asian borrowers
were more similar to those for non-Hispanic white borrowers. For example, the denial rates for
conventional home-purchase loans were about 19.3 percent for black borrowers, 13.5 percent for
Hispanic white borrowers, and 14.9 percent for other minority borrowers. In contrast, denial
rates for such loans were 10.1 percent for Asian borrowers and 7.9 percent for non-Hispanic
white borrowers. Previous research and experience gained in the fair lending enforcement
process show that differences in denial rates and in the incidence of higher-priced lending (the
topic of the next subsection) among racial and ethnic groups stem, at least in part, from factors
related to credit risk that are not available in the 2017 HMDA data,
33
such as credit history
(including credit score), ratio of total debt service payments to income (DTI), and LTV ratio.
34
Lenders can, but are not required to, report up to three reasons for denying a mortgage
application, selecting from nine potential denial reasons (as shown in Tables 6A and 6B; note
that the sum across columns can add up to more than 100 percent because lenders can cite more
32
Both the Mortgage Bankers Association and the Urban Institute publish indexes of mortgage credit availability
suggesting that standards have been much tighter since the crisis. For the most recent references, see Goodman,
Laurie, Wei Li, and Jun Zhu, and Bing Bai (2018), “Housing Affordability – Local and National Perspective”,
working paper (Washington: Urban Institute, March 2018), https://www.urban.org/research/publication/housing-
affordability-local-and-national-perspectives/view/full_report.
33
This type of information will be reported for mortgage loan activity starting in 2018, which will be reported by
covered lenders to the Bureau in 2019.
34
HMDA data are regularly used by bank examiners in fair lending examination and enforcement processes. When
examiners for the federal banking agencies evaluate an institution’s fair lending risk, they analyze HMDA price data
and loan application outcomes in conjunction with other information and risk factors which can be drawn directly
from loan files or electronic records maintained by lenders, as directed by the Interagency Fair Lending
Examination Procedures (available at https://www.ffiec.gov/PDF/fairlend.pdf). The availability of broader
information allows examiners to draw stronger conclusions about an institution’s compliance with the fair lending
laws.
42 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
than one denial reason). Among denied first-lien applications for one- to four-family, owner-
occupied, site-built properties in 2017, about 72.1 percent of denied home-purchase applications
and about 66.2 percent of denied refinance applications had at least one reported denial reason.
The two most frequently cited denial reasons for both home-purchase and refinance loans were
the applicant’s credit history and DTI ratio, with DTI ratio the most common reason for denial
of home-purchase applications and credit history most common reason for refinance
applications that were turned down. In addition, among all denied home-purchase applications,
the DTI ratio, collateral, insufficient cash, and unverifiable information are more likely to be
cited as denial reasons on conventional than nonconventional applications. Among all denied
refinance applications, the DTI ratio, credit history, and collateral are generally more likely to be
cited as denial reasons on conventional than nonconventional applications. There were also
significantly higher percentages of denials with no denial reason reported for nonconventional
home-purchase and refinance applications than for conventional home-purchase and refinance
applications, respectively.
Denial reasons vary across racial and ethnic groups to some degree. The DTI ratio was cited
most often as a denial reason for home-purchase applicants in all racial and ethnic groups.
Credit history was the second most common denial reason cited for home-purchase applicants
for all groups except Asian, for whom collateral was the second most common reason.
43 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 5A: HOME-PURCHASE LOAN DENIAL RATES, BY LOAN TYPE AND BORROWER RACE AND ETHNICITY, 2004-2017 (PERCENT)
Conventional and
nonconventional
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
14.4
16.0
18.0
18.7
18.0
15.5
15.6
15.8
14.9
14.4
13.3
12.1
11.5
10.8
Asian
13.7
15.9
16.9
17.5
19.2
16.3
15.9
16.5
15.8
15.3
14.1
12.7
11.6
10.6
Black or African American
23.6
26.5
30.3
33.5
30.6
25.5
24.9
26.0
26.0
25.5
23.0
20.8
19.8
18.4
Hispanic white
18.3
21.1
25.1
29.5
28.3
22.2
21.8
21.1
20.2
20.5
18.4
16.2
15.0
13.5
Non-Hispanic white
11.1
12.2
12.9
13.3
14.0
12.8
13.0
13.1
12.5
12.0
11.1
10.0
9.5
8.8
Other minority
(2)
19.4
20.8
24.0
26.7
25.5
21.2
22.0
20.9
20.8
21.2
19.0
17.2
16.6
14.8
Conventional only 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
14.6
16.3
18.5
19.0
18.3
15.8
15.2
15.1
13.6
12.9
11.9
10.8
10.2
9.6
Asian
13.7
16.0
17.1
17.5
19.1
15.8
14.9
15.5
14.4
14.2
13.3
11.9
10.9
10.1
Black or African American
25.0
27.8
31.9
35.7
37.6
35.8
33.7
33.2
32.0
28.5
25.1
23.3
22.0
19.3
Hispanic white
18.6
21.4
25.7
30.5
32.5
26.9
24.9
24.2
22.4
21.5
18.9
17.2
15.4
13.5
Non-Hispanic white
11.2
12.3
13.2
13.3
14.1
13.3
12.9
12.7
11.6
10.8
9.9
9.1
8.5
7.9
Other minority
(2)
19.7
21.2
24.8
27.8
29.0
25.9
28.1
24.6
23.6
22.5
20.2
18.2
16.8
14.9
44 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Nonconventional only
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
13.3
12.5
12.1
16.2
17.4
15.3
16.0
16.5
16.3
16.8
15.8
13.9
13.4
12.8
Asian
12.6
11.6
10.6
15.5
20.2
17.7
18.7
19.3
20.2
20.6
18.9
16.2
14.9
14.1
Black or African American
17.7
16.8
16.2
22.8
25.3
22.6
22.7
23.9
24.0
24.1
21.9
19.7
18.8
17.9
Hispanic white
16.3
17.2
15.7
20.5
23.1
20.4
20.7
19.9
19.3
19.9
18.0
15.6
14.7
13.4
Non-Hispanic white
10.7
10.2
10.0
13.1
13.9
12.5
13.0
13.6
13.7
14.1
13.4
11.7
11.2
10.6
Other minority
(2)
16.8
16.3
15.2
18.6
20.9
18.7
18.7
18.8
18.9
20.1
17.9
16.2
16.4
14.7
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. For a description of how borrowers are categorized by race and
ethnicity, see Table 2A, note 1.
(1) Nonconventional loans are those insured by the Federal Housing Administration or backed by guarantees from the U.S. Department of Veterans
Affairs, the Farm Service Agency, or the Rural Housing Service.
(2) See Table 2A, note 2.
TABLE 5B: REFINANCE LOAN DENIAL RATES, BY LOAN TYPE AND BORROWER RACE AND ETHNICITY, 2004-2017 (PERCENT)
Conventional and
nonconventional
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
29.5
32.6
35.4
39.6
37.7
24.0
23.3
23.8
19.9
23.3
31.0
27.2
29.9
26.4
Asian
18.8
23.5
27.5
32.6
32.5
21.4
19.5
20.1
17.3
21.0
28.1
23.8
25.1
24.8
Black or African American
39.9
42.2
44.1
52.0
56.0
42.2
41.7
40.0
32.8
35.0
45.8
43.1
45.9
39.0
Hispanic white
28.7
30.1
33.2
43.0
49.1
36.4
33.4
33.2
27.5
29.6
36.7
32.5
33.8
30.2
Non-Hispanic white
24.1
26.9
30.1
33.7
32.2
20.7
20.6
21.3
17.8
20.5
27.5
24.1
26.9
22.9
Other minority
(2)
33.7
35.5
40.6
52.0
57.4
37.3
35.4
34.4
30.0
32.1
41.6
40.1
44.2
37.2
45 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Conventional only 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
30.1
32.9
35.6
39.9
37.0
22.1
21.2
22.3
19.4
22.5
29.6
26.4
28.8
24.0
Asian
18.8
23.5
27.5
32.5
31.5
20.2
18.5
19.4
17.0
20.5
27.2
23.2
23.7
23.5
Black or African American
41.7
43.0
44.7
53.3
60.9
48.6
41.4
40.6
34.8
36.0
47.0
47.7
52.3
39.3
Hispanic white
29.3
30.2
33.3
43.2
50.2
38.9
33.6
33.5
28.9
30.6
37.3
34.8
35.2
30.0
Non-Hispanic white
24.6
27.1
30.4
33.9
31.5
19.1
18.9
20.1
17.4
19.9
26.2
23.2
25.7
20.7
Other minority
(2)
34.5
35.7
40.9
52.6
59.4
38.4
34.8
34.4
31.1
32.6
40.9
41.2
45.9
34.5
Nonconventional only
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
15.0
20.1
21.9
31.6
40.9
31.1
33.3
32.2
22.2
26.7
36.5
29.6
33.0
32.4
Asian
15.0
20.0
22.0
38.5
48.9
37.2
34.2
32.7
22.2
26.9
37.5
28.8
36.7
34.2
Black or African American
17.5
23.6
24.6
33.7
43.5
35.1
42.2
39.1
29.5
33.1
43.9
37.5
38.8
38.6
Hispanic white
15.7
23.6
26.3
34.6
43.4
31.4
33.0
32.3
23.3
26.6
34.5
27.1
30.5
30.5
Non-Hispanic white
12.0
17.6
19.7
28.3
36.1
27.4
29.3
29.0
19.7
23.8
33.7
26.9
31.0
29.7
Other minority
(2)
15.2
25.8
22.2
34.8
45.4
34.1
37.0
34.4
26.6
30.6
43.8
37.6
41.2
41.7
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. For a description of how borrowers are categorized by race and
ethnicity, see Table 2A, note 1.
(1) Nonconventional loans are those insured by the Federal Housing Administration or backed by guarantees from the U.S. Department of Veterans
Affairs, the Farm Service Agency, or the Rural Housing Service.
(2) See Table 2A, note 2.
46 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 6A: REASONS FOR DENIAL OF HOME-PURCHASE LOANS, BY LOAN TYPE AND BORROWER RACE AND ETHNICITY, 2017 (PERCENT)
Conventional and
nonconventional
(1)
Debt-
to-
income
ratio
Employ-
ment
history
Credit
history
Collateral
In-
sufficient
cash
Unverifiable
information
Incomplete
credit
application
Mortgage
insurance
denied
Other
No
reason
given
All applicants
22.8
3.6
17.0
14.4
6.8
5.8
10.2
0.3
8.9
27.9
Asian
28.5
4.5
9.6
11.7
9.0
10.3
11.6
0.3
9.9
25.7
Black or African American
25.1
3.1
22.7
10.7
7.4
4.7
6.9
0.3
9.3
30.1
Hispanic white
24.3
4.1
14.9
12.0
6.8
7.1
7.3
0.3
10.3
32.3
Non-Hispanic white
21.6
3.6
16.8
15.5
6.5
5.4
10.0
0.3
8.6
28.5
Other minority
(2)
23.9
3.9
18.9
12.2
7.5
5.4
8.4
0.4
9.5
29.3
Conventional only
Debt-
to-
income
ratio
Employ-
ment
history
Credit
history
Collateral
In-
sufficient
cash
Unverifiable
information
Incomplete
credit
application
Mortgage
insurance
denied
Other
No
reason
given
All applicants
24.6
3.2
16.8
16.9
7.6
6.4
11.2
0.4
8.9
23.2
Asian
29.0
4.3
9.4
12.3
9.6
10.7
11.9
0.3
10.0
23.9
Black or African American
27.2
2.7
26.2
14.4
8.3
4.6
6.9
0.6
10.4
22.2
Hispanic white
26.4
3.3
16.0
15.0
8.1
7.3
7.3
0.5
11.3
26.7
Non-Hispanic white
23.6
3.2
16.8
17.8
7.2
6.0
10.9
0.4
8.3
24.1
Other minority
(2)
26.5
3.8
21.7
12.8
8.4
6.0
7.9
0.7
10.3
24.1
47 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Nonconventional only
(1)
Debt-
to-
income
ratio
Employ-
ment
history
Credit
history
Collateral
In-
sufficient
cash
Unverifiable
information
Incomplete
credit
application
Mortgage
insurance
denied
Other
No
reason
given
All applicants
20.5
4.1
17.2
11.3
5.9
5.1
9.0
0.1
8.9
33.9
Asian
26.0
5.4
10.7
9.0
6.3
8.7
10.2
0.1
9.6
33.5
Black or African American
23.8
3.4
20.6
8.6
6.9
4.8
6.9
0.1
8.6
34.8
Hispanic white
22.6
4.7
14.0
9.5
5.8
6.9
7.4
0.1
9.5
37.0
Non-Hispanic white
18.6
4.3
16.8
12.2
5.5
4.6
8.8
0.2
9.1
34.9
Other minority
(2)
21.5
3.9
16.3
11.5
6.6
4.8
8.8
0.1
8.8
34.2
Note: Denied first-lien mortgage applications for one- to four-family, owner-occupied, site-built homes. Columns sum to more than 100 because lenders
may report up to three denial reasons. For a description of how borrowers are categorized by race and ethnicity, see Table 2A, note 1.
(1) See Table 5A, note 1.
(2) See Table 2A, note 2.
TABLE 6B: REASONS FOR DENIAL OF REFINANCE LOANS, BY LOAN TYPE AND BORROWER RACE AND ETHNICITY, 2017 (PERCENT)
Conventional and
nonconventional
(1)
Debt-
to-
income
ratio
Employ-
ment
history
Credit
history
Collateral
In-
sufficient
cash
Unverifiable
information
Incomplete
credit
application
Mortgage
insurance
denied
Other
No
reason
given
All applicants
17.9
0.9
18.6
13.3
2.8
2.7
13.7
0.1
8.2
33.8
Asian
27.2
1.3
15.9
9.5
3.9
4.8
11.8
0.0
9.1
32.2
Black or African American
14.5
0.5
22.3
11.1
3.0
1.7
9.1
0.1
8.5
41.6
Hispanic white
23.6
1.2
22.8
9.2
3.6
3.8
9.2
0.1
10.4
33.0
Non-Hispanic white
17.5
1.0
18.4
13.5
2.7
2.7
12.1
0.1
8.1
35.6
Other minority
(2)
16.1
0.8
19.4
9.3
2.7
2.4
10.0
0.0
9.0
42.6
48 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Conventional only
Debt-
to-
income
ratio
Employ-
ment
history
Credit
history
Collateral
In-
sufficient
cash
Unverifiable
information
Incomplete
credit
application
Mortgage
insurance
denied
Other
No
reason
given
All applicants
22.2
1.1
20.7
13.7
3.1
3.3
13.8
0.1
9.0
27.6
Asian
30.0
1.4
16.2
9.9
4.3
5.3
11.8
0.1
9.4
28.6
Black or African American
19.6
0.6
27.3
12.1
3.1
2.1
8.9
0.1
10.2
32.3
Hispanic white
28.0
1.2
25.1
9.8
3.9
4.3
8.5
0.1
11.1
27.4
Non-Hispanic white
21.8
1.1
20.6
14.6
3.0
3.3
12.2
0.1
8.9
28.5
Other minority
(2)
21.9
1.0
23.9
10.4
3.3
3.1
10.3
0.0
11.0
31.4
Nonconventional only
(1)
Debt-
to-
income
ratio
Employ-
ment
history
Credit
history
Collateral
In-
sufficient
cash
Unverifiable
information
Incomplete
credit
application
Mortgage
insurance
denied
Other
No
reason
given
All applicants
9.7
0.7
14.7
12.5
2.3
1.6
13.6
0.0
6.7
45.7
Asian
13.7
0.8
14.4
7.6
1.9
2.5
11.8
0.0
7.9
49.9
Black or African American
8.9
0.4
16.7
10.0
2.9
1.3
9.2
0.0
6.7
51.8
Hispanic white
12.0
1.0
16.8
7.9
2.9
2.6
10.9
0.1
8.6
47.6
Non-Hispanic white
8.5
0.7
14.0
11.4
2.1
1.5
11.9
0.0
6.4
50.2
Other minority
(2)
8.1
0.4
13.2
7.8
1.9
1.4
9.7
0.0
6.3
58.0
Note: Denied first-lien mortgage applications for one- to four-family, owner-occupied, site-built homes. Columns sum to more than 100 because lenders
may report up to three denial reasons. For a description of how borrowers are categorized by race and ethnicity, see Table 2A note 1.
(1) See Table 5A, note 1.
(2) See Table 2A, note 2.
49 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
5. Incidence of higher-priced
lending
Tables 7A and 7B provide rates of higher-priced mortgage lending by group and loan type from
2004 to 2017 for home-purchase loans and refinance loans, respectively. Prior to October 2009,
loans were classified as higher-priced if the spread between the Annual Percentage Rate (APR)
and the rate on a Treasury bond of comparable term exceeded three percentage points for first-
lien loans or five percentage points for junior-lien loans. Following a change to Regulation C in
October 2009, loans are currently classified as higher-priced if the APR exceeds the average
prime offer rate (APOR) for loans of a similar type by at least 1.5 percentage points for first-lien
loans or 3.5 percentage points for junior-lien loans. The APR of a closed-end mortgage differs
from the interest rate because an APR takes certain up-front fees and loan costs such as discount
points and mortgage origination charges into account. The APOR, which is now published
weekly by the Bureau, is an estimate of the APR on loans being offered to high-quality prime
borrowers based on the contract interest rates and discount points reported by Freddie Mac in
50 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
its Primary Mortgage Market Survey, and from the Bureau’s own survey.
35
Given this change, it
is difficult to compare rates of higher-priced lending pre- and post-2009.
36
Overall, the share of loans that were higher-priced increased in 2017. The percentage of home-
purchase loans (again, first liens for one- to four-family, owner-occupied, site-built properties)
above the higher-priced threshold increased from 7.7 percent in 2016 to 8.4 percent in 2017
(Table 7A). Although refinance loans are less likely than home-purchase loans to be higher-
priced in general, the share of refinance loans that were higher-priced rose from 2.0 percent in
2016 to 3.0 percent in 2017 (Table 7B). There were also moderate increases in the share of
higher-priced lending among different types of loans. For example, the higher-priced share of
nonconventional home-purchase loans increased from 14.0 percent to 15.7 percent, while the
higher-priced share of conventional home-purchase loans rose from 3.7 percent to 4.2 percent.
Tables 7A and 7B also show that, as in earlier years, black and Hispanic white borrowers had the
highest incidences of higher-priced conventional and nonconventional loans in 2017. For home-
purchase loans, 17.9 percent of loans to black borrowers and 19.3 percent of loans to Hispanic
borrowers were higher-priced, as compared to 6.7 percent of loans to non-Hispanic whites. For
refinance loans, 4.7 percent of loans to black borrowers and 4.0 percent of loans to Hispanic
white borrowers were higher-priced, in contrast to 3.1 percent for non-Hispanic whites.
In 2017, 24.8 percent of FHA, site-built, home-purchase loans were higher-priced, up from 20.9
percent in 2016. These loans are much more likely to be higher-priced than conventional (4.2
percent) or VA/RHS/FSA (0.7 percent) loans, in part because of the relatively high up-front and
annual MIPs charged by the FHA (Table 8A).
35
See Freddie Mac, “Mortgage Rates Survey,” available at www.freddiemac.com/pmms; and the Bureau’s rate spread
calculator, available athttps://ffiec.cfpb.gov/tools/rate-spread.
36
For more detailed discussion on the change of APR spread methodology in 2009, see Robert B. Avery, et al., “The
2009 HMDA Data: The Mortgage Market in a Time of Low Interest Rates and Economic Distress,” available at
https://www.federalreserve.gov/pubs/bulletin/2010/articles/2009HMDA/default.htm.
51 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Manufactured housing loans are less than three percent of all owner-occupied originations, and
the average loan sizes are much smaller than for mortgages on site-built homes. A much higher
percentage of these loans were higher-priced compared with loans on site-built homes. Among
manufactured housing home-purchase loans, 75.0 percent of conventional loans and 58.3
percent of FHA-insured loans were higher priced in 2017.
37
In addition, among those
conventional manufactured housing home-purchase loans that were higher priced, 53.1 percent
exceeded the higher-priced threshold by five or more percentage points (Table 8B).
37
Unlike the home-purchase loans for site-built homes, the share of higher-price loans is higher among conventional
loans than FHA loans for manufactured homes.
52 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 7A: INCIDENCE OF HIGHER-PRICED HOME-PURCHASE LENDING, BY LOAN TYPE AND BORROWER RACE AND ETHNICITY, 2004-2017
(PERCENT)
Conventional and
nonconventional
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
9.8
22.5
23.2
12.7
8.1
4.6
2.2
3.3
3.1
7.1
11.6
7.6
7.7
8.4
Asian
5.5
16.3
16.4
7.6
4.0
2.4
1.0
1.5
1.4
3.1
5.2
3.6
3.7
4.2
Black or African American
24.3
46.7
46.4
27.6
14.5
7.1
3.0
5.0
5.3
14.3
25.6
16.2
15.8
17.9
Hispanic white
17.5
42.0
43.3
25.9
15.8
8.1
3.9
6.1
5.9
16.9
28.5
18.5
18.0
19.3
Non-Hispanic white
7.8
15.5
16.0
9.6
7.2
4.3
2.2
3.1
2.9
6.2
9.5
6.3
6.3
6.7
Other minority
(2)
14.4
30.3
30.7
16.1
9.1
5.3
2.3
3.5
3.4
8.8
13.7
8.9
9.2
10.4
Conventional only 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
11.0
24.5
25.3
14.0
7.3
4.6
3.3
3.8
3.2
2.9
3.1
3.2
3.7
4.2
Asian
5.6
16.6
16.7
7.7
3.3
1.9
1.0
1.3
1.2
1.1
1.5
2.1
2.5
3.1
Black or African American
30.6
54.1
53.4
34.0
17.4
8.7
6.1
8.0
6.7
6.1
7.7
6.8
8.3
10.3
Hispanic white
20.0
45.3
46.3
28.9
17.7
11.0
9.6
10.7
8.7
7.3
6.5
8.3
10.1
11.5
Non-Hispanic white
8.6
16.9
17.5
10.5
6.5
4.8
3.4
3.9
3.2
2.9
3.0
2.9
3.3
3.5
Other minority
(2)
16.1
33.3
33.6
18.5
9.5
6.7
4.7
5.5
5.1
4.9
5.0
4.9
5.6
7.4
53 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Nonconventional only
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
1.2
0.9
1.8
3.0
9.5
4.6
1.3
2.7
3.0
13.9
26.3
14.5
14.0
15.7
Asian
2.4
0.6
0.8
1.3
8.2
3.9
0.8
2.0
1.9
13.4
26.3
11.4
10.2
11.7
Black or African American
1.4
1.6
2.5
4.5
12.8
6.8
2.4
4.3
4.9
17.6
34.0
20.2
19.2
22.1
Hispanic white
2.0
1.4
3.5
4.5
14.0
7.1
2.2
4.5
4.8
22.5
43.4
24.6
23.3
25.6
Non-Hispanic white
1.0 0.7 1.5 2.5 8.4 3.9 1.0 2.3 2.6 12.1 22.5 12.2 11.7 13.1
Other minority
(2)
4.4 0.7 2.1 2.4 8.8 4.7 1.2 2.5 2.4 11.9 21.0 12.2 12.2 13.1
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. For a description of how borrowers are categorized by race and
ethnicity, see Table 2A, note 1.
(1) See Table 5A, note 1.
(2) See Table 2A, note 2.
TABLE 7B: INCIDENCE OF HIGHER-PRICED REFINANCE LENDING, BY LOAN TYPE AND BORROWER RACE AND ETHNICITY, 2004-2017
(PERCENT)
Conventional and
nonconventional
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
14.5
25.0
30.3
21.0
10.9
3.8
1.8
2.1
1.5
1.9
3.3
2.5
2.0
3.0
Asian
5.8
15.1
19.5
12.5
3.1
0.9
0.4
0.5
0.4
0.5
1.1
0.7
0.6
1.3
Black or African American
30.0
46.2
50.7
38.1
22.8
9.0
6.5
6.8
4.1
3.8
5.7
5.1
3.9
4.7
Hispanic white
18.2
32.6
36.9
26.5
15.1
7.0
4.4
4.4
2.6
3.1
4.8
3.9
3.2
4.0
Non-Hispanic white
12.3
20.4
25.0
17.6
10.2
3.7
1.8
2.2
1.5
2.0
3.4
2.5
2.1
3.1
Other minority
(2)
17.6
26.9
32.3
23.8
13.9
4.7
2.5
2.6
2.0
2.2
3.1
2.8
2.2
3.0
54 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Conventional only 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
15.2
25.7
31.0
21.8
10.4
3.1
1.3
1.5
1.2
1.5
2.2
1.6
1.5
2.1
Asian
5.8
15.2
19.6
12.5
2.9
0.7
0.2
0.3
0.3
0.3
0.7
0.4
0.4
0.9
Black or African American
33.7
49.0
52.8
41.5
27.6
9.9
4.0
4.2
2.9
3.3
3.8
3.1
3.2
3.8
Hispanic white
19.2
33.4
37.5
27.3
16.0
7.2
3.3
3.3
2.3
2.4
2.8
2.4
2.3
3.2
Non-Hispanic white
12.8
20.9
25.6
18.2
9.8
3.1
1.3
1.6
1.2
1.6
2.3
1.7
1.6
2.3
Other minority
(2)
18.2
27.7
32.9
24.5
14.7
4.8
1.9
2.2
1.7
2.0
2.1
2.0
1.7
2.3
Nonconventional only
(1)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All applicants
1.5
0.9
3.1
6.6
13.2
6.7
4.9
5.9
3.2
3.9
8.3
5.4
3.9
5.4
Asian
3.6
2.1
2.5
4.9
8.9
4.8
3.1
4.0
1.8
2.6
7.2
3.4
2.7
4.4
Black or African American
1.0
1.2
4.1
7.8
15.2
8.2
9.9
10.9
6.0
4.6
8.5
7.1
4.4
5.6
Hispanic white
2.0
0.9
2.6
6.2
11.6
6.6
7.4
7.9
3.6
5.1
12.2
7.0
5.1
6.4
Non-Hispanic white
1.3
0.7
2.8
6.0
12.1
6.5
4.6
5.9
3.3
4.2
8.9
5.5
4.0
5.8
Other minority
(2)
8.1
3.9
9.6
9.9
10.5
4.5
4.6
4.3
2.9
2.8
6.0
4.4
3.0
4.2
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. For a description of how borrowers are categorized by race and
ethnicity, see Table 2A, note 1.
(1) See Table 5A, note 1.
(2) See Table 2A, note 2.
55 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 8A: NUMBER AND SHARE OF LOANS WITH APOR SPREAD ABOVE 1.5 PERCENTAGE POINTS, BY PROPERTY TYPE, PURPOSE AND
TYPE OF LOAN, 2017
Property type, purpose and type of loan Total number of loans
Number of loans with APOR
spread above 1.5 percentage
points
(1)
Percent of loans with
APOR spread above 1.5
percentage points
(1)
Site built homes: Purchase, conventional
2,290,739
96,113
4.2
Site-built homes: Purchase, FHA
(2)
810,786
201,119
24.8
Site-built homes: Purchase, VA/RHS/FSA
(3)
492,629
3,254
0.7
Site-built homes: Refinance, conventional
1,630,470
35,001
2.1
Site-built homes: Refinance, FHA
(2)
287,163
27,818
9.7
Site-built homes: Refinance, VA/RHS/FSA
(3)
252,065
1,263
0.5
Manufactured homes: Purchase, conventional
66,709
50,016
75.0
Manufactured homes: Purchase, FHA
(2)
19,854
11,580
58.3
Manufactured homes: Purchase, VA/RHS/FSA
(3)
5,795
226
3.9
Manufactured homes: Refinance, conventional
18,619
5,737
30.8
Manufactured homes: Refinance, FHA
(2)
8,173
1,872
22.9
Manufactured homes: Refinance, VA/RHS/FSA
(3)
4,334
205
4.7
Note: First-lien mortgages for one- to four-family owner-occupied homes.
(1) Average prime offer rate (APOR) spread is the difference between the annual percentage rate on the loan and the APOR for loans of a similar type
published weekly by the Bureau. The threshold for first-lien loans is a spread of 1.5 percentage points.
(2) Loans insured by the Federal Housing Administration.
(3) Loans backed by guarantees from the U.S. Department of Veterans Affairs, the Rural Housing Service, or the Farm Service Agency.
56 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 8B: DISTRIBUTION OF LOANS WITH APOR SPREAD ABOVE 1.5 PERCENTAGE POINTS, BYPROPERTY TYPE, PURPOSE AND LOAN
TYPE, 2017 (PERCENT)
Property type, purpose and type of loan 1.5-1.99 2-2.49 2.5-2.99 3-3.99 4-4.99 5 or more
Site built homes: Purchase, conventional
59.1
22.4
8.1
6.2
2.8
1.3
Site-built homes: Purchase, FHA
(1)
71.9
22.3
4.6
0.9
0.3
0.0
Site-built homes: Purchase, VA/RHS/FSA
(2)
67.0
7.2
1.8
11.8
11.9
0.3
Site-built homes: Refinance, conventional
54.1
17.3
9.3
10.6
5.3
3.4
Site-built homes: Refinance, FHA
(1)
77.2
14.2
4.2
2.2
0.4
1.8
Site-built homes: Refinance, VA/RHS/FSA
(2)
91.2
7.0
0.6
1.0
0.2
0.0
Manufactured homes: Purchase, conventional
6.2
4.6
7.6
14.5
14.0
53.1
Manufactured homes: Purchase, FHA
(1)
54.2
30.1
6.6
2.2
0.4
6.4
Manufactured homes: Purchase, VA/RHS/FSA
(2)
84.5
6.6
5.3
1.8
1.8
0.0
Manufactured homes: Refinance, conventional
30.4
15.6
12.5
17.7
9.7
14.0
Manufactured homes: Refinance, FHA
(1)
66.6
21.6
8.1
3.3
0.1
0.4
Manufactured homes: Refinance, VA/RHS/FSA
(2)
77.1
20.0
2.4
0.5
0.0
0.0
Note: First-lien mortgages for one- to four-family owner-occupied homes.
(1) Loans insured by the Federal Housing Administration.
(2) Loans backed by guarantees from the U.S. Department of Veterans Affairs, the Rural Housing Service, or the Farm Service Agency.
57 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
5.1 HOEPA loans
Under the Home Ownership and Equity Protection Act (HOEPA), certain types of mortgage
loans that have APRs or fees above specified levels (i.e., HOEPA loans or high-cost mortgages)
are subject to additional consumer protections, such as special disclosures and restrictions on
loan features. On January 31, 2013, the Bureau issued a final rule (2013 HOEPA Rule)
implementing Dodd-Frank Act amendments that extended HOEPA’s protections from refinance
and home equity loans to also include home-purchase loans and HELOCs, and that added new
protections for high-cost mortgages, such as a pre-loan counseling requirement for borrowers.
38
The rule became effective on January 10, 2014.
39
The 2013 HOEPA Rule also changed the benchmark used to identify HOEPA loans. Instead of
comparing the loan’s APR to the yield on comparable Treasury securities, high-cost mortgages
now are identified by comparing a loan’s APR with the APOR. HOEPA coverage now applies to
first liens with an APR more than 6.5 percentage points above the APOR. If the loan is a junior
lien, or if the loan is a first lien that is less than $50,000 and secured by personal property (such
as many manufactured homes), then the high-cost threshold is 8.5 percentage points above the
APOR. Prior to 2014, HOEPA’s protections were triggered if the loan’s APR exceeded eight
percentage points above the rate on a Treasury security of similar term for first liens, and ten
percentage points for junior liens. Finally, the 2013 HOEPA Rule changed the points and fees
threshold that triggers HOEPA coverage.
40
38
78 FR 6856 (Jan. 31, 2013).
39
Id.; see 12 CFR 1026.31, 1026.32, and 1026.34 (2018).
40
Under the 2013 HOEPA Rule, a loan is a high-cost mortgage if the points and fees exceed five percent of the total
loan amount, for a loan amount equal to or more than $20,000; or eight percent of the total loan amount or $1,000
58 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Even at their peak of nearly 36,000 in 2005, HOEPA loans were never a large fraction of the
mortgage market. From 2016 to 2017, the number increased for the second straight year rising
from 1,880 loans to 3,533 loans. There was also variation across loan characteristics: for
instance, home improvement loans, refinance loans, loans for manufactured housing, and small
dollar amount loans (with loan amounts of less than $50,000) each accounted for a larger share
of HOEPA loans in 2017 than 2016.
HOEPA loans are generally subject to greater regulatory scrutiny than other higher-priced loans.
One of the major reasons that HOEPA loans account for only a very small percentage of all
mortgage originations is that lenders adapt their pricing to prevent the HOEPA thresholds from
being triggered. This can be illustrated by an example of the interesting patterns of high-cost
mortgages for owner-occupied, home-purchase manufactured housing loans prior to and after
the 2013 HOEPA Rule was implemented. Prior to the 2013 HOEPA Rule, HOEPA’s protections
applied only to refinance and home equity loans, not to purchase money mortgages. Because a
majority of manufactured housing loans are for home purchase
41
, in practice most manufactured
home loans had been effectively excluded from HOEPA. As shown in Table 9B, about 17.6
percent of all first-lien, owner-occupied, home-purchase manufactured housing loans in 2013
also would have been high-cost mortgages, had HOEPA (as amended by the Dodd-Frank Act)
applied to them at that time.
42
That represents a rise from 9.0 percent in 2010 that continued
for a loan less than $20,000, with the loan amounts and $1,000 threshold adjusted annually for inflation from the
base year of 2014.
41
For instance, in 2013 about 54.7 percent of originated manufactured-housing loans were for home purchases. The
share of home-purchase loans among manufactured-housing loans rose steadily since 2013 onward, reaching 68.4
percent in 2017.
42
Manufactured housing home-purchase loans made in 2014 or later should have the HOEPA flag if they met the
high-cost mortgage thresholds adopted in the 2013 HOEPA Rule. For manufactured housing home-purchase loans
made prior to 2014, we simulate HOEPA status by assigning a HOEPA flag if the loans meet one of the following
conditions: (1) the loan was first lien with an amount less than $50,000 and the reported APR spread over APOR
(rate spread) was greater than 8.5 percent; (2) the loan was first lien with an amount of $50,000 or greater and had
a rate spread greater than 6.5 percent. HMDA data do not contain all data elements required to fully recreate the
criteria listed in the 2013 HOEPA Rule, hence the assignment of a HOEPA flag to loans with application dates prior
to 2014 using the above methodology likely underestimates the incidence of high-cost lending for manufactured
59 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
during the four-year period prior to the 2013 HOEPA Rule becoming effective in 2014. In 2014,
however, once the new HOEPA rule was in place, only 0.2 percent of owner-occupied, home-
purchase manufactured housing loans were flagged as high-cost mortgages using the HOEPA
flag. Loans under $50,000 are more likely to be HOEPA loans than loans of $50,000 or more.
But the precipitous drop in shares of owner-occupied, home-purchase manufactured housing
loans flagged as HOEPA loans was evident in both loans below and above $50,000. The large
disappearance of manufactured housing purchases that are flagged as high-cost mortgages has
continued in subsequent years. On the other hand, there is no evidence that the extension of
HOEPA rules to home-purchase loans led to or was accompanied by the reduction of home-
purchase manufacturing housing originations. The count of first-lien, owner-occupied, home-
purchase loans for manufactured housing rose from 54,764 loans in 2011 to 92,358 in 2017,
driven primarily by loans $50,000 or greater, which grew from 30,928 loans in 2011 to 69,459
loans in 2017.
Examined more closely, after the 2013 HOEPA Rule took effect in 2014, a clustering in the rate
spread variable for manufactured homes can be seen right below the HOEPA thresholds. For
instance, in 2017, approximately 5.8 percent of non-HOEPA first-lien, owner-occupied, home-
purchase manufactured housing loans of $50,000 or greater had APR spread between 6.4
percent and 6.5 percent (with 6.5 percent being their HOEPA threshold), and about 2.8 percent
of such loans had APR spread between 6.3 and 6.4 percent. Similarly, approximately 7.2 percent
of non-HOEPA first-lien, owner-occupied, home-purchase manufactured housing loans of less
than $50,000 had APR spread between 8.4 percent and 8.5 percent (with 8.5 being their
HOEPA threshold), and about 4.6 percent of such loans had APR spread between 8.3 and 8.4
percent.
housing. For the purposes of this analysis, only first-lien, owner-occupied, home-purchase manufactured housing
loans were considered.
60 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 9A: DISTRIBUTION OF HOEPA LOANS, BY LOAN CHARACTERISTIC, 2004-2017 (PERCENT EXCEPT AS NOTED)
Loans by purpose,
lien status, property
type and amount
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
HOEPA loans (total)
24,437
35,985
15,195
10,780
8,577
6,446
3,379
2,373
2,193
1,868
1,271
1,252
1,880
3,533
Purpose:
Home purchase
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 31.4 40.4 58.8 52.0
Purpose:
Home improvement
37.7 26.1 42.4 45.4 30.5 31.1 32.6 32.3 31.5 30.1 17.9 14.8 15.1 21.6
Purpose: Refinance
62.3
73.9
57.6
54.6
69.5
68.9
67.4
67.7
68.5
69.9
50.7
44.8
26.2
26.4
Lien status: First
55.5
60.5
53.6
52.8
78.5
84.1
83.4
82.8
84.6
84.2
90.3
88.6
90.0
94.0
Lien status: Junior
44.5
39.5
46.4
47.2
21.5
15.9
16.6
17.2
15.4
15.8
9.7
11.4
10.0
6.0
Property type:
Site built
88.0 91.8 83.7 81.0 72.7 67.8 67.9 65.7 65.7 68.8 75.4 83.4 86.0 75.8
Property type:
Manufactured home
12.0 8.2 16.3 19.0 27.3 32.2 32.1 34.3 34.3 31.2 24.6 16.6 14.0 24.2
Loan amount:
Less than $50,000
72.4 48.4 72.1 74.3 66.7 72.5 76.8 77.8 75.6 71.3 52.9 36.4 35.4 38.0
Loan amount:
$50,000 or more
27.6 51.6 27.9 25.7 33.3 27.5 23.2 22.2 24.4 28.7 47.1 63.6 64.6 62.0
Note: Mortgages for one- to four-family homes. HOEPA loans are mortgages with terms that triggered the additional protections provided by the Home
Ownership and Equity Protection Act.
61 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 9B: MANUFACTURED HOUSING HOME-PURCHASE LOANS, BY HOEPA STATUS AND AMOUNT, 2010-2017
Manufactured housing home-purchase loans, by
HOEPA status and amount
2010 2011 2012 2013 2014 2015 2016 2017
All loans
61,600
54,764
58,446
65,020
67,602
76,090
81,606
92,358
All loans: Less than $50,000
26,868
23,836
25,331
25,178
22,112
22,399
21,272
22,899
All loans: $50,000 or more
34,732
30,928
33,115
39,842
45,490
53,691
60,334
69,459
HOEPA loans
5,526
6,753
9,869
11,417
141
99
155
548
HOEPA loans: Less than $50,000
3,606
3,932
5,445
5,802
123
78
118
337
HOEPA loans: $50,000 or more
1,920
2,821
4,424
5,615
18
21
37
211
HOEPA loans (percent)
9.0
12.3
16.9
17.6
0.2
0.1
0.2
0.6
Share of HOEPA loans for loans less than $50,000
(percent)
13.4 16.5 21.5 23.0 0.6 0.3 0.6 1.5
Share of HOEPA loans for loans $50,000 or more
(percent)
5.5 9.1 13.4 14.1 0.0 0.0 0.1 0.3
Note: First-lien home-purchase mortgages for one- to four-family, owner-occupied, manufactured homes. HOEPA status for loans from 2010 to 2013
were simulated. For details, see footnote 42.
62 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
6. Lending institutions
In total, 5,852 financial institutions reported 2017 lending activities under HMDA (Table 10),
which is down considerably from 6,762 reporting institutions in 2016 HMDA. In the previous
section on HMDA coverage, we explain that this is partially due to the increased reporting
threshold for DIs. The other forces driving the decline of the number of HMDA reporters may
include the overall decline of the market volume (driven by the decline in refinance loan
production) and consolidation among the mortgage originators. The 5,852 reporters consisted
of 3,111 banks and thrifts (hereafter, banks), of which 1,994 were small, defined as having assets
of less than $1 billion; 1,706 credit unions; 99 mortgage companies affiliated with depositories
(banks and credit unions); and 936 independent mortgage companies.
43
Banks collectively
accounted for about 36.3 percent of all reported mortgage originations and affiliates of banks
accounted for another 3.5 percent; independent mortgage companies, about 50.6 percent; credit
unions, about 9.7 percent. Over the past few years, the share of loans originated by independent
mortgage companies has risen sharply. In 2017, these lenders originated 56.1 percent of first-
lien owner-occupied single-family site-built home-purchase loans, up from 53.3 percent in 2016
and just 35.0 percent in 2010. Independent mortgage companies also originated 55.8 percent of
43
Data on bank assets were drawn from the Federal Deposit Insurance Corporation Reports of Condition and Income.
The $1 billion threshold is based on the combined assets of all banks within a given banking organization. Data
available in the HMDA Reporter Panel (available at https://ffiec.cfpb.gov/data-publication/
) can be used to help
identify the various types of institutions. Affiliate institutions include all mortgage companies known to be wholly or
partially owned by a depository—that is, institutions for which the “other lender code” in the Reporter Panel equals
1, 2, or 5. Most credit unions report to the National Credit Union Administration, except a few large credit unions,
which report to the Bureau.
63 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
first-lien, owner-occupied, single-family site-built refinance loans, an increase from 52.2 percent
in 2016.
Many institutions report little activity. About 36.2 percent of institutions (2,118 out of 5,852)
reported fewer than 100 mortgage originations in 2017, accounting for about 104,000, or just
over 1.4 percent, of all originations. About 7.2 percent, or 421 of 5,852 reporting institutions,
originated fewer than 25 loans, totaling just over 5,000 originations.
44
(Recall that these
institutions were required to report only if they had originated at least 25 loans during both of
the prior years.)
Table 10 provides several other statistics to compare the lending patterns of different types of
institutions in 2017, and we discuss some highlights here. First, depositories tend to originate a
significantly higher fraction of conventional loans than nondepositories. Second, a higher share
of small banks’ conventional loan originations is of higher-priced loans than other types of
institutions. Third, independent mortgage companies originate a higher share of their home-
purchase loans to minority borrowers and in LMI neighborhoods than other types of lenders.
Fourth, large banks originate a lower share of home-purchase mortgages loans to LMI
borrowers compared with other types of lenders.
Finally, the HMDA data provide information on whether originated loans were sold within the
same calendar year and the type of institution to which they were sold, such as one of the GSEs
or a banking institution (see Appendix for a full list of purchaser types). Table 10 displays the
44
These results include all originated loans for all reporters. The new reporting threshold of 25 originations applies
only to DIs, and to home-purchase and refinance originations in each of the previous two years. Beginning in 2018,
lending institutions will not be subject to HMDA reporting requirements unless they originated at least 25 covered
closed-end mortgage loans or 500 covered open-end lines of credit in each of the two preceding calendar years. For
a more detailed description of these and other changes to Regulation C, see Consumer Financial Protection Bureau
(2015), “New Rule Summary: Home Mortgage Disclosure (Regulation C),” October 15,
http://files.consumerfinance.gov/f/201510_cfpb_hmda-executive-summary.pdf
.
64 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
fraction of loans sold within the calendar year, as opposed to being held in portfolio.
45
Nondepositories sold almost all of their loans that they originated in the same calendar year. In
contrast, credit unions sold about 44.9 percent of the home-purchase loans they originated and
about 32.2 percent of the refinance loans they originated.
Tables 11A and 11B list the top 25 reporting institutions by total number of originations along
with the lending characteristics listed in Table 10.
46
With just under 396,000 originated loans,
Quicken Loans surpassed Wells Fargo as the highest volume lender in 2017.
47
Wells Fargo,
JPMorgan Chase and loanDepot.com were the next three largest lenders in terms of
originations. Overall, the top 25 lenders accounted for about 33.6 percent of all loan originations
in 2017, largely unchanged from 2016. These same firms also provided additional funding by
purchasing approximately 1.1 million loans from other lending institutions during 2017 (these
loans could have been originated in 2016 or in earlier years), equal to about 44 percent of the
number of loans they originated during the year.
45
Because loan sales are recorded in the HMDA data only if the loans are originated and sold in the same calendar
year, loans originated toward the end of the year are less likely to be reported as sold. For that reason, statistics on
loan sales are computed using only loans originated during the first three quarters of the year.
46
Some institutions may be part of a larger organization; however, the data in Table 11 are at the reporter level.
Because affiliate activity has declined markedly since the housing boom, a top 25 list at the organization level is not
likely to be significantly different. SunTrust is one notable exception. Combined mortgage originations across its
bank and mortgage affiliates totaled about 61,000.
47
Notably, loan counts and market shares derived from the HMDA data can differ markedly from market shares
based on information compiled by Inside Mortgage Finance. For HMDA reporting purposes, institutions report only
mortgage applications in which they make the credit decision. Under HMDA, if an application is approved by a third
party (such as a correspondent) rather than the lending institution, then that party reports the loan as its own
origination and the lending institution reports the loan as a purchased loan. Alternatively, if a third party forwards
an application to the lending institution for approval, then the lending institution reports the application under
HMDA (and the third party does not report anything). In contrast, Inside Mortgage Finance considers loans to have
been originated by the acquiring institution even if a third party makes the credit decision. Thus, many of the larger
lending organizations that work with sizable networks of correspondents report considerable volumes of purchased
loans in the HMDA data, while Inside Mortgage Finance considers many of these purchased loans to be originations.
65 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
The top institutions differ significantly in their lending patterns. Some of this variation reflects
differences between types of institutions, which were discussed earlier. For example, Table 11B
shows that large banks like Bank of America have a higher share of conventional mortgages and
a smaller share of lending in LMI neighborhoods compared with independent mortgage
companies like Quicken Loans.
In addition to the variation across lender types, there is substantial variation in lending patterns
within lender types. For example, regarding large banks, 96.8 percent of JPMorgan Chase’s
home-purchase loans were conventional, compared with 55.7 percent for FlagStar Bank.
Finally, the composition of borrowers varied across the top 25 institutions, both within and
across lender types. For some institutions, more than 30 percent of home-purchase borrowers
were LMI; at other institutions, this fraction was less than 20 percent.
48
Although it is difficult
to know precisely why there is such variation, it could reflect different business strategies or
different customer demands in the markets and geographic regions the institutions serve,
among other possibilities.
48
Note that for lenders with a significant nonconventional share of refinance loans (for example, Freedom Mortgage
Corporation), borrower income may not be reported for most loans, thus pushing down the LMI share of borrowers.
66 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 10: LENDING ACTIVITY, BY TYPE OF INSTITUTION, 2017 (PERCENT EXCEPT AS NOTED)
Lending activity Small bank
(1)
Large bank Credit union
Affiliated
mortgage
company
(2)
Independent
mortgage
company
All
Number of institutions
1,994
1,117
1,706
99
936
5,852
Applications (thousands)
627
3,490
1,136
351
6,452
12,056
Originations (thousands)
461
2,204
709
254
3,710
7,339
Purchases (thousands)
13
1,074
17
125
857
2,087
Institutions with fewer than 100 loans Small bank
(1)
Large bank Credit union
Affiliated
mortgage
company
(2)
Independent
mortgage
company
All
Number of institutions
870
314
781
28
125
2,118
Originations (thousands)
47
16
36
1
4
104
Institutions with fewer than 25 loans Small bank
(1)
Large bank Credit union
Affiliated
mortgage
company
(2)
Independent
mortgage
company
All
Number of institutions
97
43
198
14
69
421
Originations (thousands)
2
1
3
0
1
5
Home-purchase loans
(3)
Small bank
(1)
Large bank Credit union
Affiliated
mortgage
company
(2)
Independent
mortgage
company
All
Number of loans (thousands)
196
974
237
170
2,017
3,594
Conventional
73.4
79.6
85.4
61.5
52.8
63.7
Higher-priced share of conventional loans
9.5
2.7
4.3
3.1
4.6
4.2
LMI borrower
(4)
28.3
22.0
25.3
28.7
28.1
26.3
LMI neighborhood
(5)
13.6
13.3
14.8
15.3
17.9
16.1
67 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Home-purchase loans
(3)
Small bank
(1)
Large bank Credit union
Affiliated
mortgage
company
(2)
Independent
mortgage
company
All
Non-Hispanic white
(6)
80.0
67.7
67.0
68.0
61.5
64.9
Minority borrower
(6)
11.6
19.4
16.6
17.9
25.0
21.9
Sold
(7)
76.2 69.3 44.9 94.7 97.8 85.2
Refinance loans
(3)
Small bank
(1)
Large bank Credit union
Affiliated
mortgage
company
(2)
Independent
mortgage
company
All
Number of loans (thousands)
86
612
209
53
1,210
2,170
Conventional
86.3
92.1
94.8
87.0
61.9
75.1
Higher-priced share of conventional loans
9.9
1.7
3.0
0.8
1.6
2.1
LMI borrower
(4)
22.9
21.7
25.1
23.6
23.1
22.9
LMI neighborhood
(5)
11.8
13.3
16.0
12.6
17.0
15.5
Non-Hispanic white
(6)
83.9 69.5 67.9 70.7 57.5 63.3
Minority borrower
(6)
7.8
17.1
16.4
13.4
19.3
17.8
Sold
(7)
63.0
66.5
32.2
94.0
97.9
80.9
Note: Bank asset data drawn from Federal Deposit Insurance Corporation Reports of Conditions and Income (https://www.fdic.gov).
(1) Small banks consist of those banks with assets (including the assets of all other banks in the same banking organization) of less than $1 billion at the
end of 2017.
(2) Affiliated mortgage companies are nondepository mortgage companies owned by or affiliated with a banking organization or credit union.
(3) First-lien mortgages for one- to four-family, owner-occupied, site-built homes.
(4) See Table 2A, note 3.
(5) See Table 2A, note 4.
(6) See Table 2A, note 1. "Minority borrower" refers to nonwhite (excluding joint or missing) or Hispanic white applicants.
(7) Excludes originations made in the last quarter of the year because the incidence of loan sales tends to decline for loans originated toward the end of
the year, as lenders report a loan as sold only if the sale occurs within the same year as origination.
68 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 11A: INSTITUTION TYPE, TOTAL ORIGINATIONS, AND TOTAL PURCHASES FOR TOP 25 RESPONDENTS IN TERMS OF TOTAL
ORIGINATIONS, 2017
Respondent Institution type
(1)
Total originations
(thousands)
Total purchases
(thousands)
Quicken Loans
Ind. mort. co.
396
0
Wells Fargo Bank, NA
Large bank
312
481
JPMorgan Chase Bank, NA
Large bank
155
189
loanDepot.com, LLC Ind. mort. co. 135 0
Caliber Home Loans, Inc.
Ind. mort. co.
118
48
Bank of America, NA
Large bank
111
24
United Shore Financial Service
Ind. mort. co.
105
0
US Bank, NA
Large bank
96
133
Fairway Independent Mort Corp
Ind. mort. co.
90
0
Flagstar Bank, FSB
Large bank
87
37
Freedom Mortgage Corporation
Ind. mort. co.
80
95
Navy Federal Credit Union
Credit union
71
0
Guild Mortgage Company
Ind. mort. co.
66
2
Nationstar Mortgage
Ind. mort. co.
65
24
USAA Federal Savings Bank
Large bank
63
0
PrimeLending
Affiliated mort. co.
60
1
Guaranteed Rate, Inc
Ind. mort. co.
60
0
Movement Mortgage, LLC
Ind. mort. co.
60
0
PNC Bank, NA
Large bank
58
0
Finance of America Mortgage LLC
Ind. mort. co.
54
0
69 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Respondent Institution type
(1)
Total originations
(thousands)
Total purchases
(thousands)
HomeBridge Financial Services
Ind. mort. co.
48
0
Stearns Lending
Ind. mort. co.
47
13
Mortgage Research Center
Ind. mort. co.
46
0
Academy Mortgage Corporation
Ind. mort. co.
44
1
DITECH Financial LLC
Ind. mort. co.
40
42
Top 25 institutions
...
2,465
1,091
All institutions
...
7,339
2,087
Note: Bank asset data drawn from Federal Deposit Insurance Corporation Reports of Conditions and Income (https://www.fdic.gov).
(1) See Table 10, notes 1 and 2.
70 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 11B: CHARACTERISTICS OF HOME-PURCHASE LOANS OF TOP 25 RESPONDENTS IN TERMS OF TOTAL ORIGINATIONS, 2017
(PERCENT EXCEPT AS NOTED)
Respondent
Institution
type
(1)
Number
(thou-
sands)
Conven-
tional
Higher
priced
(2)
LMI bor-
rower
(3)
LMI neigh-
borhood
(4)
Non-
Hispanic
white
(5)
Minority
borrower
(5)
Sold
(6)
Quicken Loans Ind. mort. co. 105 64.9 0.6 28.3 17.4 48.7 11.8 99.9
Wells Fargo Bank, NA Large bank 136 90.3 3.1 16.2 12.1 64.2 21.9 73.3
JPMorgan Chase
Bank, NA
Large bank 56 96.8 0.6 13.5 10.8 59.5 26.0 60.5
loanDepot.com LLC Ind. mort. co. 40 57.1 4.7 19.6 16.6 52.4 29.9 99.1
Caliber Home Loans,
Inc.
Ind. mort. co. 78 57.1 7.7 29.0 19.0 58.9 26.9 99.7
Bank of America, NA Large bank 45 93.9 0.2 13.3 11.1 54.6 30.1 31.3
United Shore Financial
Service
Ind. mort. co. 56 81.8 2.1 26.8 17.8 59.9 30.5 99.8
US Bank, NA Large bank 35 85.3 0.7 25.1 13.9 72.0 15.3 76.1
Fairway Independent
Mort Corp
Ind. mort. co. 67 56.5 5.5 30.4 17.7 72.1 19.7 99.9
Flagstar Bank, FSB Large bank 46 55.7 2.8 25.0 15.7 62.8 27.7 95.4
Freedom Mortgage
Corp
Ind. mort. co. 21 37.8 1.9 27.1 18.7 55.9 31.0 99.4
71 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Respondent
Institution
type
(1)
Number
(thou-
sands)
Conven-
tional
Higher
priced
(2)
LMI bor-
rower
(3)
LMI neigh-
borhood
(4)
Non-
Hispanic
white
(5)
Minority
borrower
(5)
Sold
(6)
Navy Federal Credit
Union
Credit union 36 38.1 22.9 19.4 13.9 54.6 25.9 56.6
Guild Mortgage
Company
Ind. mort. co. 44 52.1 6.0 28.6 20.8 57.8 21.0 99.9
Nationstar Mortgage Ind. mort. co. 1 79.1 1.7 14.2 13.3 61.6 17.6 92.1
USAA Federal Savings
Bank
Large bank 44 34.5 0.3 15.3 12.5 65.8 15.6 99.6
PrimeLending
Affiliated
mort. co.
45 60.5 5.6 29.1 16.2 68.6 18.6 98.8
Guaranteed Rate, Inc Ind. mort. co. 39 75.9 2.0 21.7 15.6 69.2 18.1 100.0
Movement Mortgage,
LLC
Ind. mort. co. 48 51.9 7.7 32.9 19.2 67.6 24.3 99.9
PNC Bank, NA Large bank 16 80.9 0.0 28.2 14.2 61.0 14.8 78.3
Finance of America
Mortgage LLC
Ind. mort. co. 33 54.7 3.5 23.7 20.2 60.4 22.8 99.7
HomeBridge Financial
Services
Ind. mort. co. 28 52.0 3.5 25.3 19.1 53.8 32.4 99.8
Stearns Lending Ind. mort. co. 29 50.3 3.2 25.4 18.9 57.9 29.2 100.0
Mortgage Research
Center
Ind. mort. co. 40 1.4 0.2 27.6 15.9 62.1 22.1 100.0
72 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Respondent
Institution
type
(1)
Number
(thou-
sands)
Conven-
tional
Higher
priced
(2)
LMI bor-
rower
(3)
LMI neigh-
borhood
(4)
Non-
Hispanic
white
(5)
Minority
borrower
(5)
Sold
(6)
Academy Mortgage
Corporation
Ind. mort. co. 31 53.0 9.9 29.8 19.3 68.8 22.4 99.8
DITECH Financial, LLC Ind. mort. co. 4 65.2 1.7 25.0 15.9 63.3 27.6 99.6
Top 25 institutions ... 1,124 63.8 3.5 24.0 16.0 61.1 22.7 89.1
All institutions
... 3,594 63.7 4.2 26.3 16.1 64.9 21.9 85.2
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. Bank asset data drawn from Federal Deposit Insurance Corporation
Reports of Conditions and Income (https://www.fdic.gov).
(1) See Table 10, notes 1 and 2.
(2) Share of conventional loans that are higher priced.
(3) See Table 2A, note 3.
(4) See Table 2A, note 4.
(5) See Table 2A, note 1. "Minority borrower" refers to nonwhite (excluding joint or missing) or Hispanic white applicants.
(6) See table 10, note 7.
73 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
TABLE 11C: CHARACTERISTICS OF REFINANCE LOANS OF TOP 25 RESPONDENTS IN TERMS OF TOTAL ORIGINATIONS, 2017 (PERCENT
EXCEPT AS NOTED)
Respondent
Institution
type
(1)
Number
(thou-
sands)
Conven-
tional
Higher
priced
(2)
LMI bor-
rower
(3)
LMI neigh-
borhood
(4)
Non-
Hispanic
white
(5)
Minority
borrower
(5)
Sold
(6)
Quicken Loans Ind. mort. co. 269 70.7 0.1 27.9 16.2 41.8 9.4 99.9
Wells Fargo Bank, NA Large bank 101 93.7 1.8 22.2 14.5 64.6 21.3 87.5
JPMorgan Chase
Bank, NA
Large bank 72 94.4 0.9 22.3 13.4 65.5 21.8 76.4
loanDepot.com, LLC Ind. mort. co. 83 51.9 3.4 27.3 17.1 63.1 18.2 99.1
Caliber Home Loans,
Inc.
Ind. mort. co. 26 70.4 2.4 20.8 15.7 63.3 21.4 99.9
Bank of America, NA Large bank 47 99.6 0.4 19.4 13.4 60.6 24.9 41.5
United Shore Financial
Service
Ind. mort. co. 37 83.9 0.3 18.2 15.2 60.2 28.8 99.9
US Bank, NA Large bank 37 96.0 2.8 24.7 15.9 70.7 14.5 46.3
Fairway Independent
Mort Corp
Ind. mort. co. 9 81.1 0.9 23.4 15.0 77.2 14.9 99.9
Flagstar Bank, FSB Large bank 29 72.0 0.9 18.4 14.2 63.7 23.8 94.2
Freedom Mortgage
Corporation
Ind. mort. co. 53 16.9 0.6 14.4 19.1 58.2 26.0 98.8
Navy Federal Credit
Union
Credit union 15 42.4 3.8 15.3 14.1 54.0 29.1 62.2
Guild Mortgage
Company
Ind. mort. co. 10 75.0 0.3 23.7 19.1 63.3 19.3 100.0
74 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Respondent
Institution
type
(1)
Number
(thou-
sands)
Conven-
tional
Higher
priced
(2)
LMI bor-
rower
(3)
LMI neigh-
borhood
(4)
Non-
Hispanic
white
(5)
Minority
borrower
(5)
Sold
(6)
Nationstar Mortgage Ind. mort. co. 55 76.7 2.2 17.2 19.9 60.2 24.1 99.9
USAA Federal Savings
Bank
Large bank 11 39.9 0.2 11.0 12.8 63.1 17.8 99.8
PrimeLending
Affiliated
mort. co.
7 87.5 2.0 20.3 13.3 72.2 16.1 99.6
Guaranteed Rate, Inc. Ind. mort. co. 13 90.7 0.5 15.9 12.2 72.5 13.5 100.0
Movement Mortgage,
LLC
Ind. mort. co. 4 77.7 1.7 26.5 15.5 73.5 19.3 99.9
PNC Bank, NA Large bank 21 94.3 0.1 27.2 13.3 66.7 12.9 53.0
Finance of America
Mortgage
Ind. mort. co. 13 81.3 0.3 19.0 17.5 61.5 23.1 99.9
HomeBridge Financial
Services
Ind. mort. co. 14 42.7 1.0 11.6 17.2 54.5 30.1 100.0
Stearns Lending Ind. mort. co. 12 68.2 0.5 20.4 18.1 58.2 28.9 100.0
Mortgage Research
Center
Ind. mort. co. 5 2.6 0.0 15.2 15.2 64.5 19.3 100.0
Academy Mortgage
Corporation
Ind. mort. co. 6 81.9 1.0 25.1 16.0 76.0 16.1 99.9
DITECH Financial LLC Ind. mort. co. 28 92.4 0.9 41.9 20.6 64.9 20.4 100.0
Top 25 institutions ... 977 73.8 1.1 23.3 16.0 57.5 18.3 90.0
All institutions
... 2,170 75.1 2.1 22.9 15.5 63.3 17.8 80.9
Note: First-lien mortgages for one- to four-family, owner-occupied, site-built homes. Bank asset data drawn from Federal Deposit Insurance Corporation
Reports of Conditions and Income (https://www.fdic.gov).
(1) See Table 10, notes 1 and 2.
(2) See Table 11B, note 2.
(3) See Table 2A, note 3.
75 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
(4) See Table 2A, note 4.
(5) See Table 2A, note 1. "Minority borrower" refers to nonwhite (excluding joint or missing) or Hispanic white applicants.
(6) See table 10, note 7.
76 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
7. Appendix: Requirements of
Regulation C
Regulation C requires lenders to report the following information on home-purchase and home-
improvement loans and on refinancings:
49
For each application or loan
application date and the date an action was taken on the application
action taken on the application
approved and originated
approved but not accepted by the applicant
denied (with the reasons for denial—voluntary for some lenders)
withdrawn by the applicant
49
Changes to Regulation C issued in 2015 will affect the information that covered institutions are required to collect
and report beginning with the mortgage lending activity in 2018 that is reported to the Bureau in 2019. For a
description of these changes, see Consumer Financial Protection Bureau (2015), “New Rule Summary: Home
Mortgage Disclosure (Regulation C),” October 15, available at
http://files.consumerfinance.gov/f/201510_cfpb_hmda-executive-summary.pdf
.
77 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
file closed for incompleteness
preapproval program status (for home-purchase loans only)
preapproval request denied by financial institution
preapproval request approved but not accepted by individual
loan amount (in thousands)
loan type
conventional
insured by the Federal Housing Administration
guaranteed by the Department of Veterans Affairs
backed by the Farm Service Agency or Rural Housing Service
lien status
first lien
junior lien
unsecured
loan purpose
home purchase
refinance
home improvement
type of purchaser (if the lender subsequently sold the loan during the year)
Fannie Mae
Ginnie Mae
78 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
Freddie Mac
Farmer Mac
private securitization
commercial bank, savings bank, or savings association
life insurance company, credit union, mortgage bank, or finance company
affiliate institution
other type of purchaser
For each applicant or co-applicant
race
ethnicity
sex
income relied on in credit decision (in thousands)
For each property
location, by state, county, metropolitan statistical area, and census tract
type of structure
one- to four-family dwelling
manufactured home
multifamily property (dwelling with five or more units)
79 DATA POINT: 2017 MORTGAGE MARKET ACTIVITY AND TRENDS
occupancy status (owner occupied, non-owner occupied, or not applicable)
For loans subject to price reporting
spread above comparable Treasury security for applications taken prior to October 1,
2009
spread above average prime offer rate for applications taken on or after October 1, 2009
For loans subject to the Home Ownership and Equity Protection Act
indicator of whether loan is a high-cost mortgage under the Home Ownership and Equity
Protection Act
