The Federal Financial Institutions Examination Council (FFIEC) recently announced the release of the 2022 Home Mortgage Disclosure Act (HMDA) data.  The CFPB also released a summary of the data.

The FFIEC advises that the Snapshot National Loan-Level Dataset that it released contains the national HMDA datasets as of May 1, 2023, and that key observations from the Snapshot include the following:

•     The number of reporting institutions increased by about 2.63% from 4,338 in 2021 to 4,460 in 2022.

•     The 2022 data include information on 14.3 million home loan applications, that include 11.5 million closed-end credit applications and 2.5 million open-end credit applications.

•     The FFIEC notes that 287,000 applications were reported by financial institutions making use of Economic Growth, Regulatory Relief, and Consumer Protection Act’s partial exemptions from HMDA data reporting requirements, and that the institutions did not indicate whether the applications were for closed-end credit or open-end credit.  We previously reported on the partial exemptions available to smaller mortgage loan volume depository institutions and credit unions that basically exempt such institutions from having to report the new HMDA data categories added by a HMDA rule adopted by the CFPB in October 2015.  In its summary of the HMDA data, the CFPB notes that a total of 1,406 reporting institutions made use of the partial exemptions for at least one of the 26 data points eligible for the exemptions.

•     The share of first lien, one- to four-family, site-built, owner-occupied, home-purchase loans originated by independent mortgage companies, which are not depository institutions, decreased from 63.9% in 2021 to 60.2% in 2022.  However, in its summary of the HMDA data, the CFPB advises that the share of closed-end, first lien, one- to four-family, site-built, owner-occupied, home-purchase loans independent mortgage companies increased in recent years, and rose from 63.9% in 2021 to 72.1% in that 2022.

•     The share of closed-end, first lien, one- to four-family, site-built, owner-occupied, home-purchase loans made to (1) Black or African American borrowers rose from 7.9% in 2021 to 8.1% in 2022, (2) Hispanic-White borrowers decreased slightly from 9.2% in 2021 to 9.1% percent 2022, and (3) Asian borrowers increased from 7.1% in 2021 to 7.6% in 2022.

•     In 2022 the denial rates for closed-end, first lien, one- to four-family, site-built, owner-occupied, conventional, home purchase loans were (1) 16.4% for Black or African American applicants, (2) 11.1% for Hispanic-White applicants, (3) 9.2% for Asian applicants and (4) 5.8% for non-Hispanic-White applicants.

The FFIEC announced the release of other data products, including the HMDA Dynamic National Loan-Level Dataset that is updated on a weekly basis to reflect late submissions and resubmissions, and Aggregate and Disclosure Reports that provide summary information on individual financial institutions and geographies.  Additionally, the FFIEC advises that the HMDA Data Browser allows users to create custom tables and download datasets that can be further analyzed.  As previously reported, in March 2023, the FFIEC made available modified Loan/Application Registers for each HMDA filer of 2022 data, as well as a combined file for all filers.

In its summary of the HMDA data, the CFPB advises that:

•     The total number of originated closed-end loans decreased by about 7.0 million between 2021 and 2022, or 50.7%. (Based on very low interest rates, 2021 had an extraordinarily high level of mortgage loan originations.)

•     The share of closed-end, first lien, one- to four-family, site-built, owner-occupied, home-purchase loans that were (1) insured by the Federal Housing Administration (FHA) decreased slightly from 17.2% in 2021 to 16.3% in 2022, and (2) guaranteed by the Department of Veterans Affairs (VA) increased slightly to 10.2% in 2022 (the share in 2021 was 9.7%).

•     The share of closed-end, first lien, one- to four-family, site-built, owner-occupied, home-refinance loans that were (1) insured by the FHA increased from 6.9% in 2021 to 10.4% in 2022, and (2) guaranteed by the VA decreased from 10.2% in 2021 to 9.5% in 2022.

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