1999 Mortgage Lending Statistics - Nationwide Summary of Lending Patterns
September 6, 2000
Circular No. 11269

To the Chief Executive Officers of all State Member Banks in the Second Federal Reserve District

The Federal Financial Institutions Examination Council (FFIEC) has made the following statement:

The FFIEC has announced the availability of data about 1999 mortgage lending activity in metropolitan statistical areas (MSAs) and rural areas throughout the nation (see Circular No. 11264) and has also released nationwide summary statistics regarding lending patterns.

The data reflect lending activity for more than 7,800 institutions covered by the Home Mortgage Disclosure Act (HMDA) that reported data to the member agencies of the FFIEC - the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision - and to the Department of Housing and Urban Development (HUD).

The 1999 data include 22.9 million reported loans and applications, a decrease of 7.1 percent from 1998, primarily reflecting decreased refinancing activity partially offset by increased home purchase lending. The number of home purchase loans extended in 1999 compared with 1998 increased 44.4 percent for Native Americans, 18.3 percent for Hispanics, 16.3 percent for Asians, 11.1 percent for blacks, and 1.7 percent for whites. From 1993 to 1999, the number of home purchase loans made to Hispanics rose 121.4 percent; to Native Americans, 118.9 percent; to blacks, 91.0 percent; to Asians, 70.1 percent; and to whites, 33.5 percent. (The period 1993 to 1999 is used because HMDA coverage was expanded in 1993 to include a significantly larger group of independent mortgage companies.) Refer to Table 7 for year-to-year changes during the period 1993 to 1999.

The number of home purchase loans extended to applicants in all income categories also increased in 1999 compared with the prior year. The number of such loans extended in 1999 to applicants with incomes less than 80 percent of the median family income for their MSAs increased 13.7 percent over 1998. During the same period, applicants with incomes 80-99 percent of the median, 100-119 percent of the median, and 120 percent or more of the median, experienced increases of 6.8 percent, 4.7 percent, and 4.0 percent, respectively. During the period 1993-99, the number of home purchase loans extended to applicants with incomes less than 80 percent of the median increased 86.2 percent; to applicants with incomes 80-99 percent of the median, 52.1 percent; to applicants with incomes 120 percent or more of the median, 51.0 percent; and to applicants with incomes 100-119 percent of the median, 43.6 percent. Refer to Table 7 for year-to-year changes during the period.

In 1999, for the first time in several years, the overall denial rate for conventional home purchase loans declined from the prior year - from 29 to 28 percent. Denial rates for these loans continue to vary, however, among racial and ethnic groups. Forty-nine percent of black applicants, 42.1 percent of Native American applicants, 35.0 percent of Hispanic applicants, 25.5 percent of white applicants, and 11.8 percent of Asian applicants were denied conventional home purchase loans in 1999. These rates of loan denial were lower than in 1998 for each group except Asians, for whom denial rates remained unchanged.

The disclosure statements underlying these and other summary statistics are now available for public inspection at central depositories throughout the nation. The disclosures include individual financial institutions' disclosure statements and aggregate data for each MSA. (The location of the central depository for an MSA can be obtained by calling the FFIEC at (202) 872-7500.) Starting next year, the FFIEC will distribute these disclosures to institutions and central depositories in electronic form only.

The disclosure statements report home purchase and home improvement loans and refinancings of these loans. The statements present data about loan originations, loan purchases, and applications that did not result in a loan; and they give information about three characteristics of applicants or borrowers: race or national origin, sex, and annual income. For loans relating to property located in MSAs, as well as some loans relating to property located outside of MSAs, the reports identify the geographic location by MSA, state, county, and (usually) census tract.

The HMDA data also include information on loans that are sold, showing the type of purchaser of the loan. Among other things, this information is used by HUD in assessing the performance of Fannie Mae and Freddie Mac in meeting their legislatively mandated affordable housing goals.

The FFIEC makes HMDA data available in various formats, including paper, cartridge tape, and CD-ROM. Tables showing the nationwide aggregates and key demographic information for MSAs can be obtained in paper form. The raw data for all individual loans and applications are available on cartridge tape and CD-ROM. Order forms, with descriptions of the various reports and formats available, are attached to this release.

The FFIEC also provides data on mortgage insurance applications. Data from seven major private mortgage insurance (PMI) companies were compiled under the auspices of the Mortgage Insurance Companies of America, and are available at individual PMI companies, at the central depository in each MSA, and from the FFIEC.