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FEDERAL RESERVE BANK
OF NEW YORK
August 25, 1995

1994 Mortgage Lending Transactions
in Metropolitan Statistical Areas
To the Chief Executive Officer of each Depository Institution
in the Second Federal Reserve District and Others Concerned:

Printed on the following pages is the text of a statement issued by the Federal
Financial Institutions Examination Council (FFIEC) announcing the availability of data
on 1994 mortgage lending transactions in metropolitan statistical areas (MSAs) at
a central depository located in each MSA.
Questions concerning these matters may be directed to our Community Affairs
Office (Tel. No. 212-720-5912).




C h ester

B.

F eld berg ,

Executive Vice President.

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




-

2

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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 HMD A 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




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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.




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4

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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, 4 2.0 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 HMD A data.




-2 -

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 H M D A , 1981-94

Year

1981
1982
1983
1984
1985
1986
1987
1988
1989
19902
1991
1992
1993
1994

Number
of
l
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
8
8
8
8
8
9
9
9
9
9
9
9
9

094
258
050
491
072
898
431
319
203
332
358
073
650
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, v o l . 77 (November 1991), p. 861,
to reflect corrections and the reporting of additional
data .
SOURCE.
FFIEC, Home Mortgage Disclosure Act data.




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

Percent change
1992 to 1993
excluding new
mortgage companies

Memo :
Percent change Number of
1993 to 1994 loans in
1994

16.5

17.9

2,795, 162

Race or ethnic group of borrower
American Indian/
Alaskan native..............
Asian/Pacific Islander.......
Black..........................
Hispanic.......................
White..........................
Other..........................
Joint (wnite/minority) .......

7.3
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 120.................

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 native.............
Asian/Pacific Islander.......
Black..........................
Hispanic.......................
White- .........................
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

Total

.........................
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 moderate...............
Middle.........................
Upper..........................

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: 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.
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

Type of disposition

Applicant
characteristic
Approved

Denied

Withdrawn

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, by number of applications

Applicant income
and race or,ethnic
1
group

Type of disposition
__ Approved__ 1 Denied

1 Withdrawn

1 File closed

1 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/Pacific 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
Type of lender
Purpose of loan

Home purchase
F H A -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

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

2

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 purchase

Characteristic

Government -ba eked
Memo:
Percentage of
character i st ic ’s
Percent
Number
home
purchase
loans

Home improvement

.Convention a 1

Number

Percent

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
128
250
219
3 ,290
33
89
4 ,033

887
992
267
844
026
041
021
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
175
124
183
818

,912
,207
,250
,607
,976

41 .0
.
21 ,4
15 .2
22 .4
100..0

29.,3
30.,3
25.,0
12 .0

809
402
372
1 ,345
.
2 ,930

920
921
468
089
398

27 .6
13 .7
12 .7
45 .9
100.,0

70..7
69 .7
75 .0
88 .0

689 .658
3 75,,005
3 5 3,,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)
Less than 10 ........ .. . . 305,923
189,742
10-19 ................ ....
20-49 ................ .. . . 211,458
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

Income3
Low or moderate ..... ....
Middle ............... ....
Upper ................ ....
Total ................ ....

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
671,206
337,594
1 .281.052

21.3
52.4
26.4
100.0

4
Location
Central city ....... ....
Non-central city ....... . .
Total ................ ....

311,106
52 1.591
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




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, or the 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.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102