Fed Agency Releases Mortgage Activity Report

FFIEC: In 2022, the percentage of home loans to Blacks (7.9% to 8.1%) and Asians (7.1% to 7.6%) rose, but it fell slightly for Hispanics (9.2% to 9.1%).

WASHINGTON – The Federal Financial Institutions Examination Council (FFIEC) releases lending-institution data under the Home Mortgage Disclosure Act (HMDA). The goal is to help “assess how financial institutions are serving the housing needs of their local communities and facilitate federal financial regulators’ fair lending, consumer compliance, and Community Reinvestment Act examinations.”

The Snapshot National Loan-Level Dataset contains the national HMDA datasets as of May 1, 2023. Key observations from the Snapshot include:

  • For 2022, the number of reporting institutions increased by 2.63% year-to-year, from 4,338 to 4,460.
  • The 2022 data includes information on 14.3 million home loan applications – 11.5 million closed-end and 2.5 million open-end.
  • In terms of borrower race and ethnicity, the share of closed-end home purchase loans for first lien, one- to four-family, site-built, owner-occupied properties made to Black borrowers rose from 7.9% in 2021 to 8.1% in 2022; the share made to Hispanic-White borrowers decreased slightly from 9.2% to 9.1%; and the share made to Asian borrowers increased from 7.1% to 7.6%.
  • In 2022, loan denial rates were 16.4% for Black Americans, followed by Hispanic (11.1%), Asian (9.2%) and white (5.98%) applicants.
  • The share of mortgages originated by non-depository, independent mortgage companies decreased. In 2022, it accounted for 60.2% of first lien, one- to four-family, site-built, owner-occupied home-purchase loans, down from 63.9% in 2021.

© 2023 Florida Realtors®