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F ederal Reserve Bank OF DALLAS ROBERT D. M C T E E R , J R . DALLAS, TEXAS p re s id e n t AND 75265-5906 CH IEF E X E C U TIV E O F F IC E R August 9, 1995 Notice 95-73 TO: The Chief Executive Officer of each member bank and others concerned in the Eleventh Federal Reserve District SUBJECT Availability of 1994 Data on Mortgage Loan Transactions DETAILS The Federal Financial Institutions Examination Council (FFIEC) has announced the availability of data on 1994 mortgage lending transactions in metropolitan areas throughout the nation. These data, in the form of individual disclosure statements, are available from the more than 9,800 lenders covered by the Home Mortgage Disclo sure Act (HMDA). The FFIEC makes HMDA data directly available to the public in various formats, including paper, magnetic tape, PC diskette, and CD-ROM. ATTACHMENT A copy of the FFIEC notice is attached. MORE INFORMATION For more information, please contact Jim Foster at (214) 922-5280. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 922-5254. Sincerely yours, For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Federal Financial Institutions Examination Council ^ ________________________________________________________________________ 2100 Pennsylvania Avenue, NW, Suite 200 • Washington, DC 20037 • (202) 634-6526 • FAX (202) 634-6556 Press Release For use at noon E.D.T. Tuesday, July 18, 1995 July 18, 1995 The Federal Financial Institutions Examination Council (FFIEC) announced today the availability of data on 1994 mortgage lending transactions in metropolitan statistical areas (MSAs) throughout the nation. These data, in the form of individual disclosure statements, are available from the more than 9,800 lenders covered by the Home Mortgage Disclosure Act (HMDA). The FFIEC prepared and distributed the individual disclosure statements for lenders on behalf of its member agencies -- the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Reserve System — and the Department of Housing and Urban Development. Upon request, lenders are required to make the statements available at their home office within three business days of receipt, and at certain branch offices in other metropolitan areas within ten business days of receipt. The individual disclosure statements - which cover home purchase and home improvement loans — contain information about loan originations, loan purchases, and applications that did not result in a loan. The 1994 data include a total of 12.2 million Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision reported loans and applications, a 21 percent decrease from 1993 largely attributable to a decline in refinancing activity. For most loans relating to property located in a metropolitan area, the disclosure statements identify the geographic location, usually by census tract. They also give information about three characteristics of applicants or borrowers: race or national origin, gender, and annual income. The 1994 HMDA data show an increase in the number of conventional home purchase loans from 1993 (see attached fact sheet). The number of such loans increased 27.0 percent for lower-income households and 12.5 percent for the highest-income households, for example. The numbers increased by 54.7 percent for Blacks, 42.0 percent for Hispanics, 23.8 percent for Native Americans, 18.6 percent for Asians, and 15.7 percent for Whites. The denial rates for conventional home purchase loans continue to vary among racial or ethnic groups, as in previous years. In 1994, the denial rates were 33.4 percent for Blacks, 31.6 percent for Native Americans, 24.6 percent for Hispanics, 16.4 percent for Whites, and 12.0 percent for Asians in 1994. The comparable denial rates in 1993 were 34.0 percent for Blacks, 27.8 percent for Native Americans, 25.1 percent for Hispanics, 15.3 percent for Whites, and 14.6 percent for Asians. The FFIEC is now aggregating the data for all lenders in each metropolitan area. In early August, the FFIEC will send aggregate and individual disclosure statements to a central depository in each metropolitan area for public inspection, generally in paper form but also on CD-ROM and microfiche in many areas. The location of the central depository for a given MSA can be obtained by calling the FFIEC (Ms. Campbell, (202)634-6526). In addition, the FFIEC makes HMDA data directly available to the public in various formats, including paper, magnetic tape, PC diskette, and CD-ROM. Tables for 1994 showing the nationwide aggregates and key demographic information for MS As can be obtained in paper form, for instance, and a nationwide version of the HMDA loan-application register (HMDA-LAR) and other data products will be available in early August. An order form, with descriptions of the various data products and prices, can be obtained by calling (202)452-2016 and selecting menu option 3; or by faxing a request for an order form to (202)452-6497. Advance orders may be placed to be filled when the data products become available in early August. The FFIEC has also prepared and distributed individual disclosure statements for the nation's eight private mortgage insurance (PMI) companies. The 1994 PMI data include information on 1.5 million applications for mortgage insurance, 1.2 million of which were to insure home purchase mortgages, and 0.3 million of which were to insure mortgages to refinance existing obligations. The disclosure statements are available at the individual PMI companies. In early August, the data will be available at central depositories and from the FFIEC in the same formats as the HMDA.data: on magnetic tape, CD-ROM, and PC diskettes. -4 - Questions about a disclosure statement for a specific lender should be directed to the lender's supervisory agency at the appropriate number listed below: Federal Reserve System, HMDA Assistance Line -- (202) 452-2016 Federal Deposit Insurance Corporation — (800) 934-3342 Office of Thrift Supervision, Financial Reports Division — (214) 281-2068 Comptroller of the Currency, Compliance Management -- (202) 874-4446 National Credit Union Administration, Compliance Officer - (703) 518-6392 Department of Housing and Urban Development, Office of Housing - (202) 708-5852. Attachment: FFIEC Fact Sheet Findings from Analysis of Nationwide Summary Statistics for 1994 Data, Home Mortgage Disclosure Act Fact Sheet (July 1995) The following analyses of nationwide summary statistics are based on data compiled by the Federal Financial Institutions Examination Council (FFIEC) for institutions covered by the Home Mortgage Disclosure Act and Regulation C * The Data For 1994, the FFIEC prepared 38,750 disclosure statements for 9,858 lenders, with a separate statement for each metropolitan area in which the lender has an office (table 1). Submitting data were: 5,296 commercial banks, 1,144 savings associations, 2,229 credit unions, and 1,189 mortgage companies (908 were independent entities). Applications Received and Loans Made Covered lenders received 10.7 million home loan applications in 1994 (compared with 13.6 million in 1993), and purchased 1.5 million loans (compared with nearly 1.8 million in 1993). The total volume of home loans and applications (12.2 million) decreased 21 percent from 1993, largely due to a 51 percent decline in the number of applications for refinancing. Rising interest rates during 1994, coupled with the fact that millions of home owners had refinanced during 1992 and 1993, sharply curtailed the demand for such loans. The number of conventional home purchase loans increased. Changes in Lending Volume by Race and Income The data suggest that the affordable home loan programs that mortgage originators have initiated in recent years - to benefit low-income, moderate-income, and minority households and neighborhoods - may be having an impact (table 2). The number of conventional home purchase loans extended to lower-income households went up 27.0 percent from 1993 to 1994, while loans to the highest-income households went up 12.5 percent (second column, table 2). Among racial or ethnic groups, the number of conventional home purchase loans went up 54.7 percent for Blacks, 42.0 percent for Hispanics, 23.8 percent for Native Americans, 18.6 percent for Asians, and 15.7 percent for Whites. * The FFIEC also has compiled insurance data submitted by the nation's eight private mortgage insurance (PMI) companies under the auspices of the Mortgage Insurance Companies of America. The data relate to application decisions made by the PMI companies during 1994. The disclosure statements are available from the individual companies. In early August, the data will be available at the MSA central depositories and from the FFIEC in the same formats as the HMDA data. Approval/Denial Rates For conventional home purchase loans, the denial rates vary among applicants by income and racial or ethnic characteristics (table 3). For example, loan applications filed by Blacks, Native Americans, and Hispanics are more likely to be turned down than those submitted by Whites or Asians. In 1994, 33.4 percent of Black applicants, 31.6 percent of Native American applicants, 24.6 percent of Hispanic applicants, 16.4 percent of Whites applicants, and 12.0 percent of Asian applicants were denied conventional home purchase loans. Compared with 1993 data, the denial rates for Black, Hispanic, and Asian applicants decreased slightly in 1994, while the denial rates for Whites and Native Americans increased (the comparable denial rates in 1993 were 34.0 percent for Blacks, 27.8 percent for Native Americans, 25.1 percent for Hispanics, and 15.3 percent for Whites and 14.6 percent for Asians). Differences in the distribution of applicants by income account for some of the differences in loan disposition rates among racial or ethnic groups (table 4). Other factors are more important, however, since Whites and Asian applicants, in all income groups, had lower rates of denial than Black, Native American, or Hispanic applicants. The extent to which racial discrimination may account for these differences is not known. The HMDA data provide some information on the reasons for denial as cited by lenders. Poor credit history or no credit history was the most frequently cited reason for denial of conventional home purchase loan applications. Loan Programs Lending institutions tend to specialize in different types of home loans (table 5). For example, among home purchase loan originations, mortgage companies tend to do most of the government-backed lending. Depository institutions, on the other hand, do most of the home improvement lending. Applicants vary in terms of their likelihood of applying for types of home loan programs (table 6). For example, low-income households are more likely to apply for government-sponsored home loans than are high-income households (29.3 percent, compared with 12.0 percent). In addition, Blacks and Hispanics (36.0 percent and 31.7 percent, respectively) are more likely to apply for such loans than are Asians, Whites, or Native Americans (10.7 percent, 17.2 percent, and 18.0 percent, respectively). Attachments: Tables 1 through 6 1. Residential lending activity reported by financial institutions covered by HMDA, 1981-94 Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 2 1990 1991 1992 1993 1994 Number of loans (millions) 1 .28 1 .13 1.71 1 .86 1 .98 2 .83 3 .42 3 .39 3 .13 6 .59 7 .89 12.01 15 .38 12 .20 Number of reporting institutions 8 ,094 8 ,258 8 ,050 8 ,491 8 ,072 8 ,898 9 ,431 9,319 9 ,203 9 ,332 9 ,358 9 ,073 9 ,650 9 ,858 Number of MSA disclosure reports 10,945 11,357 10 ,970 11,799 12,567 12,329 13,033 13,919 14,154 24 ,041 25 ,934 28,782 35 .976 38 ,750 1. Before 1990, includes only loans originated by covered institutions; beginning in 1990 (first year under revised reporting system), includes loans originated and purchased, applications approved but not accepted by the applicant, applications denied or withdrawn, and applications closed because information was incomplete. 2. Revised from preliminary figures published in Glenn B. Canner and Dolores S. Smith, "Home Mortgage Disclosure Act: Expanded Data on Residential Lending," Federal Reserve Bulletin, vol. 77 (November 1991), p. 861, to reflect corrections and the reporting of additional data. SOURCE. FFIEC, Home Mortgage Disclosure Act data. 2. Change in volume of conventional home purchase loans between 1992 and 1993 and between 1993 and 1994, by characteristic of borrowers and census tracts Percent, by number of loans Borrower or census tract characteristics Total Percent change Memo : 1992 to 1993 Percent change Number of excluding new j 1993 to 1994 loans in morteaae companies 1994 .......................... 16.5 17.9 2,795,162 Race or ethnic group of borrower American Indian/ Alaskan n a t i v e .............. Asian/Pacific I s l a n d e r ....... B l a c k .......................... H i s p a n i c ....................... W h i t e .......................... O t h e r .......................... Joint (white/minority)....... 1 .3 6 .5 35 .8 25 .4 17.5 64. 1 17.8 23 .8 18.6 54 .7 42.0 15.7 61.3 37.0 10,691 93,319 125 ,796 129,695 2 ,281,450 18 ,984 60,763 Income (percentage of MSA median) Less than 8 0 .................. 80-99 .......................... 100-120 ........................ More than 1 2 0 ................. 38.4 21.4 16 .2 8 .2 27.0 19.1 15.7 12.5 516,824 295,734 285,044 1 ,069,305 MEMO: Income less than 80 percent of MSA median American Indian/ Alaskan n a t i v e ............ Asian/Pacific I s l a n d e r ....... B l a c k .......................... H i s p a n i c ....................... W h i t e - ......................... Total3 ......................... 22 .1 28 .6 67 .7 49.5 36.4 38.4 32.0 29.3 62.8 67 .9 19.8 27.0 2 ,125 16,865 39,666 38,213 391,535 516,824 18 .2 16 .2 12 .6 10.4 7 .9 11.1 19.1 23 ;7 24.7 30.2 1 ,197,432 460,110 337,292 101,817 56,329 14.9 16.1 17.6 21.3 17.3 12.0 224,434 1 ,053,155 877,527 BORROWER CENSUS TRACT Racial composition of census tract (minorities as percentage of population) Less than 1 0 .................. 10-19 ......................... 20-49 ......................... 50-79 ......................... 80-100 ........................ 4 Income of census tract Low or m o d e r a t e ............... M i d d l e ......................... U p p e r .......................... 1. Amendments to HMDA resulted in a substantial increase in the number of covered independent mortgage companies from 1992 to 1993. To provide the most appropriate year-over-year comparisons, the lending activity of these newly covered firms was excluded from 1993 volume estimates. 2. MSA median is median family income of the metropolitan statistical area in which the property related to the loan is located. 3. Total includes loans where race is unknown, or otherwise categorized as "other" or "joint." 4. Census tracts are categorized by the median family income for the tract relative to the median family income for the metropolitan statistical area (MSA) in which the tract is located. Categories are defined as follows: L o w or m o d e r a t e , median family income for census tract less than 80 percent of median family income for MSA; Middle income, median family income 80 percent to 120 percent of MSA median; Upper income, median family income more than 120 percent MSA median. SOURCE. FFIEC. Home Mortgage Disclosure Act data. 3. Disposition of conventional home purchase loan applications, by characteristics of applicant, 1994 Percentage distribution, by number of applications 1 Applicant characteristic Type of disposition Approved Denied Withd rawn File closed Total Race or ethnic group American Indian/ Alaskan native Asian/Pacific Islander Black Hispanic White Other Joint (white/minority) 58 .0 76 .6 57.3 65 .0 75 .6 65 .0 73 .6 31.6 12.0 33.4 24.6 16.4 23 .8 17.2 9 .2 10.0 7 .6 8 .6 7 .1 9 .5 8 .2 1 .2 1 .5 1 .7 1 .7 .9 1 .6 1 .0 100 100 100 100 100 100 100 Income (percentage of MSA median) Less than 80 80-99 100-120 More than 120 69 .2 77 .8 80. 5 83 .2 22 .7 13.7 11.0 7 .8 7 .1 7 .5 7 .5 7 .9 1.0 1 .0 1 .1 1 .1 100 100 100 100 1. MSA median is median family income of the metropolitan statistical area in which the property related to the loan is located. SOURCE. FFIEC, Home Mortgage Disclosure Act data. 4. Disposition of conventional home purchase loan applications, by income and race of applicant, 1994 Percent distribution, Applicant income and race or,ethnic 1 erouD by number of applications Type of disposition Aocroved 1 Denied 1 Withdrawn \ File closed Total Less than 80 of MSA Median American Indian/ Alaskan native Asian/Pacific Islander Black Hispanic White Other Joint (white/minority) 59.8 74.6 59.8 64 .0 71.7 62 .7 64 .4 30 .5 15.0 30.5 27.0 21.0 27.9 27.6 8 .7 9 .1 7 .9 7 .6 6 .5 8 .2 7 .2 1 .1 1 .3 1 .8 1 .4 .8 1 .2 .8 100 100 100 100 100 100 100 80-99 of MSA Median American Indian/ Alaskan native Asian/Pacifip Islander Black Hispanic White Other Joint (white/minority) 70 .3 78.5 67 .1 69 .4 80.5 70.9 74 .8 19.2 11.1 22 .2 20 .7 12.0 17.8 17.1 9 .5 9 .2 8 .9 8 .4 6.8 9.6 7 .5 1 .0 1 .2 1.8 1 .5 :8 1 .7 .6 100 100 100 100 100 100 100 100-120 of MSA Median American Indian/ Alaskan native Asian/Pacific Islander Black Hispanic White Other Joint (white/minority) 72.2 79.3 69 .8 71.1 82 .9 72.6 78 .8 15.8 10 .4 19.0 18 .6 9.5 15.0 12.6 10 .6 9.0 9.4 8 .5 6 .9 10 .5 7 .9 1 .3 1 .3 1 .9 1 .8 .8 1 .9 .7 100 100 100 100 100 100 100 More than 120 of MSA Median American Indian/ Alaskan native 73.3 Asian/Pacific Islander 78.7 Black 73 .5 Hispanic 74.4 White 85 .1 Other 74.4 Joint (white/minority] 81.9 12.3 10.0 15.1 14.1 6 .7 12.3 9 .2 13 .0 9 .9 9.5 9 .7 7 .3 11.6 8.0 1 .4 1.4 1 .9 1 .7 .9 1 .8 .9 100 100 100 100 100 100 100 1. Applicant income shown as percentage of the median family income of the metropolitan statistical area in which the property related to the loan is located. SOURCE. FFIEC, Home Mortgage Disclosure Act data. 5. Home lending, by type and purpose of loan and by type of lender, 1994 Percent distribution, by number of loans Tvoe of lender Purpose of loan Home purchase FHA-insured VA-guaranteed FmHa-insured Conventional Home refinancing Home improvement Multifamily All Commercial bank 23 .7 8 .0 8 .6 28 .7 27 .8 28 .9 70 .6 46 .9 32.4 2 Savings association 19.2 10 .1 9 .7 14.7 21.7 18 .5 7 .9 48 .1 17.4 Credit union 1 .5 .2 1 .3 .4 1 .8 4 .0 11.5 .4 3 .8 Mortgage company 55 .6 81 .8 80.4 56.2 48 .8 48 .6 10 .0 4 .6 46.4 Total 100 100 100 100 100 100 100 100 100 1. In this and subsequent tables components may not sum to totals because of rounding. 2. Includes independent mortgage companies and mortgage companies affiliated with a commercial bank or savings association. 3. Includes dwellings for five or more families. SOURCE. FFIEC, Home Mortgage Disclosure Act data. 6. Applications for one- to four-family home loans reported under HMDA, grouped by purpose of loan and distributed by characteristic of applicant and census tract, 1994 Home refinancing Home Dur chase Characteristic Government-ba eked Memo : Percentage of character Percent istic's Number home purchase loans C i.nytiU U Number Percent Home improvement al Memo : Percentage of character istic’s home purchase loans Number Percent Number Percent APPLICANT Racial/ethnic identity American Indian/ Alaskan native ...... Asian/Pacific Islander .. Black ................... Hispanic ................ White ................... Other ................... Joint (white/minority)... Total ................... 4,813 15,508 140,900 101,919 681.071 5,233 33,809 983,253 .5 1 .6 14.3 10.4 69.3 .5 3.4 100.0 18.0 10.7 36.0 31.7 17.2 13 .7 27.5 21,887 128,992 250,267 219,844 3,290,026 33.041 89.021 4,033,078 .5 3 .2 6.2 5 .5 81.6 .8 2.2 100.0 82 .0 89.3 64.0 68.3 82.8 86.3 72.5 17,151 131 ,306 221,910 210,231 2,641,947 33 ,898 74,162 3,330,605 .5 3 .9 6 .7 6.3 79.3 1.0 2 .2 100.0 9, 163 21,154 155,848 119,093 1,055,069 13,983 23,805 1,398,115 .7 1 .5 11.1 8.5 75 .5 1 .0 1 .7 100.0 Income ^percentage of MSA median) Less than 80 ............ 80-99 ................... 100-119 ................. 120 or more ............. Total ................... 335,912 175,207 124,250 183,607 818,976 41.0 21.4 15 .2 22.4 100.0 29.3 30.3 25 .0 12.0 809.920 402.921 372.468 1,345,089 2,930,398 27 .6 13.7 12.7 45 .9 100.0 70.7 69.7 75.0 88 .0 689,658 375,005 353.399 1,307,272 2,725,334 25 .3 13.8 13.0 48.0 100. 0 476,650 189,000 164.184 456 ,154 1,285,988 37.1 14. 7 12.8 35 .5 100.0 CENSUS TRACT Racial/ethnic composition (minorities as percentage of population) 305,923 Less than 10 ........... 189,742 10-19 ................... 211,458 20-49 ................... 64,801 50-79 ................... 41,538 80-100 .................. 813,462 Total ................... 37 .6 23 .3 26 .0 8 .0 5 .1 100.0 16.6 23 .1 29 .9 28 .8 30.2 1,536,461 629,939 496,869 160,091 96,042 2,919,402 52.6 21.6 17.0 5 .5 3 .3 100.0 83 .4 76 .9 70.1 71.2 69 .8 1 ,367 .155 637 .288 594,298 228,933 188 ,931 3,016,605 45.3 21.1 19.7 7 .6 6.3 100.0 607 ,071 218.633 208.429 94,344 120,853 1 ,249,330 48 .6 17.5 16.7 7 .6 9 .7 100.0 139,723 481.747 201,450 822,920 17.0 58 .5 24 .5 100.0 28 .3 24.9 15.3 354,253 1,449 .151 1,118,982 2 ,922 ,386 12.1 49 .6 38 .3 100 .0 71.7 75.1 84.7 435,193 1,543,198 1 ,064 ,330 3 ,042 ,721 14.3 50.7 35.0 100.0 272,252 67 1 .206 337 ,594 1.281,052 21.3 52.4 26.4 100.0 311.106 521,591 832,697 37 .4 62 .6 100.0 26 .1 19.9. 880,180 2,094,695 2,974,875 29 .6 70.4 100.0 73 .9 80. 1 973,944 2,113,606 3,087,550 31.5 68 .5 100.0 459,888 849,494 1,309,382 35 .1 64.9 100.0 Income^ Low or moderate ........ Middle .................. Upper ................... Total ................... 4 Location Central city ........... Non-central city ....... Total ................... Table 6. Continued NOTE. Lenders reported 10.719,927 applications for home loans in 1994. Not all characteristics were reported for all applications; thus the number of applications being distributed by characteristic varies by characteristic. 1. Loans backed by the Federal Housing Adminstration, the Department of Veterans Affairs, orthe Farmers Home Adminstration. 2. MSA median is median family income of the metropolitan statistical area (MSA) in which the property related to the loan is located. 3. Census tracts are categorized by the median family income for the tract relative to the median family income for the metropolitan statistical area (MSA) in which the tract is located. Categories are defined as follows: Low or moderate, median family income for census tract less than 80 percent of median family income for MSA; Middle income,median family income 80 percent to 120 percent of MSA median; Upper income, median family income more than 120 percent of MSA median. 4. For census tracts located in MSAs. SOURCE. FFIEC, Home Mortgage Disclosure Act.
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