Circular
1996 Mortgage Lending Transactions in Metropolitan Statistical Areas
July 29, 1997
Circular No. 10969

To the Chief Executive Officers of All Depository Institutions in the Second Federal Reserve District, and Others Concerned:

The following is from a press release issued by the Federal Financial Institutions Examination Council (FFIEC):
The Federal Financial Institutions Examination Council (FFIEC) has announced the availability of data on 1996 mortgage lending transactions at individual institutions in metropolitan areas throughout the nation. These data, in the form of disclosure statements, are available from the more than 9,300 lenders covered by the Home Mortgage Disclosure Act (HMDA). A nationwide version of the HMDA loan-application register (HMDA-LAR) data is now available on magnetic tape for purchase from the FFIEC; the data will be available in additional formats beginning the first week in August.

The FFIEC prepares and distributes the HMDA statements for individual lenders on behalf of its member agencies -- the Comptroller of the Currency, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, and Federal Reserve System -- and the Department of Housing and Urban Development. Lenders are required to make the disclosure statements available at their home offices within three business days of receiving the statements. In addition, for other metropolitan statistical areas (MSAs) in which they have offices, lenders must either make a copy of the statements available at one branch per MSA or provide a copy upon written request.

The disclosure statements cover home purchase and home improvement loans and contain information about loan originations, loan purchases, and applications that did not result in a loan. The 1996 data include a total of 14.8 million reported loans and applications, an increase of about 32 percent from 1995 that primarily reflects a large increase (68 percent) in refinancing activity in 1996. For most loans relating to property located in MSAs, the statements identify the geographic location, usually by census tract. The statements give information about three characteristics of applicants or borrowers: race or national origin, sex, and annual income.

By the latter part of July, the FFIEC will send aggregate and individual disclosure statements to a central depository in each metropolitan area for public inspection. The location of these central depositories 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 magnetic tape, PC diskette, and CD-ROM. Some are available in paper form (tables for 1996 showing the nationwide aggregates and key demographic information for metropolitan areas, for instance). An order form, with descriptions of the various reports, prices, and formats, can be obtained by calling 202/452-2016 (an automated-response system), 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 become available.

The FFIEC also provides data from the nation' s eight private mortgage insurance (PMI) companies. The 1996 PMI data includes information on approximately 1.4 million applications for mortgage insurance, about 1.1 million of which were to insure home purchase mortgages, and 0.2 million of which were to insure mortgages to refinance existing obligations. These data will be available at individual PMI companies, at the central depositories in each metropolitan area, and from the FFIEC. By early August, the data will be available at central depositories and from the FFIEC in the same types of reports and in the same formats as the HMDA data.

Questions about a HMDA report for a specific lender should be directed to the lender's supervisory agency at the number listed below:

Federal Reserve System, HMDA Assistance Line -- 202/452-2016

Federal Deposit Insurance Corporation -- 800/934-3342

Office of Thrift Supervision, Reports Division -- 214/281-2068

Comptroller of the Currency, Compliance Management -- 202/874-4446

National Credit Union Administration, Office of Examination -- 703/518-6392

Department of Housing and Urban Development, Office of Housing -- 202/755-7530.