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Federal Financial Institutions Examination Council

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For Immediate Release

Press Release
September 30, 2009

Consumer Compliance
Reports
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Awareness
Federal Register
Freedom of Information
Act
EGRPRA (Economic
Growth and Regulatory
Paperwork Reduction
Act of 1996)
Industry Outreach

The Federal Financial Institutions Examination Council (FFIEC) today announced the
availability of data on mortgage lending transactions at 8,388 U.S. financial institutions
covered by the Home Mortgage Disclosure Act (HMDA). Covered institutions include banks,
savings associations, credit unions, and mortgage companies. The HMDA data made
available today cover 2008 lending activity--applications for loans, loan originations, loan
denials, and purchases of loans. The data include 14.2 million applications and originations
and 2.9 million purchases, for a total of 17.1 million actions.
The data include disclosure statements for each financial institution, aggregate data for each
metropolitan statistical area (MSA), nationwide summary statistics regarding lending patterns,
and Loan Application Registers (LAR) for each financial institution (LARs modified for
borrower privacy). The FFIEC prepares and distributes this information on behalf of its
member agencies (Board of Governors of the Federal Reserve System, Federal Deposit
Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the
Currency, and Office of Thrift Supervision) and the Department of Housing and Urban
Development.
The HMDA data show the disposition of loan applications and include information on loan
type, purpose, and amount; property type (1- to 4-family, multifamily, or manufactured
housing); property location (MSA, state, county, and census tract); applicant characteristics
(race, ethnicity, sex, and income); and census tract characteristics (minority composition and
income). The data also reflect information about whether a loan is subject to HOEPA (the
Home Ownership and Equity Protection Act) and whether a loan is secured by a first or
subordinate lien, or is unsecured. In addition, the data provide information on higher-priced
loans, where the spread between a loan's annual percentage rate and a market rate (yield on
comparable-maturity Treasury securities) exceeds specified thresholds. More information
about HMDA data reporting requirements is available in the Frequently Asked Questions on
the FFIEC website at http://www.ffiec.gov/hmda/faq.htm.
The 2008 HMDA data reflect the ongoing difficulties in the housing and mortgage markets,
with decreases in the number of reporting institutions and loans. The number of reporting
institutions fell nearly 3 percent from 2007, primarily because of a relatively large decline in
the number of independent mortgage companies. The total number of originated loans of all
types reported fell about 3.3 million, or 31 percent, from 2007.
While the number of reported first-lien conventional loans fell sharply from 2007 to 2008, firstlien loans backed by FHA insurance increased dramatically. The number of such loans in
2008 rose by 169 percent over the 2007 level. The FHA's share of such loans expanded from
5.5 percent in 2007 to 19.6 percent in 2008. First-lien loans backed by Veterans
Administration guarantees also increased markedly. The number of VA-guaranteed loans in
2008 increased by 48 percent over the number in 2007. The VA market share increased from
1.5 percent in 2007 to 2.9 percent in 2008.
The incidence of higher-priced lending declined from 2007 to 2008. Among all HMDAreported loans, about 12 percent were higher-priced in 2008, down significantly from the

historic high point of about 29 percent in 2006 and 18 percent in 2007. Among higher-priced
loans, rate spreads were lower than in previous years.
The overall incidence of higher-priced lending reported in the 2008 HMDA data for all racial
and ethnic groups was much lower than reported in 2007. However, the 2008 HMDA data,
similar to the data from earlier years, indicate that black and Hispanic white borrowers were
more likely, and Asian borrowers less likely, to obtain higher-priced loans than were nonHispanic white borrowers. For conventional home-purchase lending in 2008, the incidence of
higher-priced lending (not adjusted for lender or borrower-related factors) was 17.1 percent
for blacks, 15.4 percent for Hispanic whites, 6.5 percent for non-Hispanic whites, and 3.3
percent for Asians. In addition, for both home-purchase and refinance lending in 2008, blacks
and Hispanic whites had notably higher gross denial rates than non-Hispanic whites. The
pattern for Asians was somewhat different, as the gross denial rate for this group was higher
for home-purchase loans than for non-Hispanic whites, but about the same for refinance
loans.
The HMDA data can facilitate the fair lending examination and enforcement process and
promote market transparency. When federal banking agency examiners evaluate an
institution's fair lending risk, they analyze HMDA data in conjunction with other information
and risk factors, in accordance with the Interagency Fair Lending Examination Procedures
(http://www.ffiec.gov/PDF/fairlend.pdf). Risk factors for pricing discrimination include, but are
not limited to, the relationship between loan pricing and compensation of loan officers or
brokers, the presence of broad pricing discretion, and consumer complaints.
The HMDA data alone cannot be used to determine whether a lender is complying with fair
lending laws. They do not include many potential determinants of creditworthiness and loan
pricing, such as the borrower's credit history, debt-to-income ratio, and the loan-to-value
ratio. Therefore, when the federal banking agencies conduct fair lending examinations,
including ones involving loan pricing, they analyze additional information before reaching a
determination regarding institutions' compliance with fair lending laws.
Financial institution disclosure statements, individual institutions' LAR data, and MSA and
nationwide aggregate reports are available at http://www.ffiec.gov/hmda. Refer to the HMDA
data products at http://www.ffiec.gov/hmda/hmdaproducts.htm for the item descriptions and
formats.
Financial institutions are required to make their disclosure statements available at their home
offices and, for other MSAs in which they have offices, either to make a copy of the
statements available at one branch per MSA or to provide a copy upon written request.
Questions about a HMDA report for a specific institution should be directed to the institution's
supervisory agency at the number listed below
Federal Deposit Insurance Corporation — 877-275-3342; hearing impaired - 800-925-4618
Board of Governors of the Federal Reserve System, HMDA Assistance Line — 202-4522016
National Credit Union Administration, Office of Examination and Insurance — 703-518-6360
Office of the Comptroller of the Currency, Compliance Policy Division — 202-874-4428
Office of Thrift Supervision, HMDA Hotline — 202-906-6342
Department of Housing and Urban Development, Office of Housing — 202-708-0685.
Data on Private Mortgage Insurance
The FFIEC also provides data from the nation's eight private mortgage insurance (PMI)
companies. The 2008 PMI data include information on approximately 1.6 million applications
for mortgage insurance, comprised of about 1.1 million applications to insure home purchase
mortgages, and about 490,000 applications to insure mortgages to refinance existing
obligations. These data also are available today--at individual PMI companies and from the
FFIEC (http://www.ffiec.gov/reports.htm)--in the same types of reports and formats as the
HMDA data.
###
Media Contacts:
Federal Reserve

Susan Stawick

(202) 452-2955

FDIC

David Barr

(202) 898-6992

NCUA

Cherie Umbel

(703) 518-6330

OCC

Dean DeBuck

(202) 874-4876

OTS

William Ruberry

(202) 906-6677

The Federal Financial Institutions Examination Council was established by the Congress in 1979 to prescribe uniform
principles, standards, and report forms for the federal examination of financial institutions, to make recommendations to
promote uniformity in the supervision of financial institutions, and to conduct schools for examiners. The Council has six
voting members: the Comptroller of the Currency, the Chairman of the Board of Directors of the Federal Deposit
Insurance Corporation, a Governor of the Board of Governors of the Federal Reserve System, the Director of the Office
of Thrift Supervision, the Chairman of the National Credit Union Administration, and the Chairman of the State Liaison
Committee. Visit the Council's website for press releases and information on the mission and work of the Council at
http://www.ffiec.gov.

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Last Modified: 08/29/2018 1:11 PM