HMDA: Approval Rates Vary by Income and Race | Pound Ridge Real Estate

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The total number of originated mortgages of all types and purposes declined by about 2.7 million, or 31 percent, but in 2014 but home purchase lending increased by about 4 percent. Refinance originations declined by 55 percent, according to the latest Home Mortgage Disclosure Act (HMDA) Data released by the Federal Financial Institutions Examination Council.
The 2014 data include information on 9.9 million home loan applications—of which, nearly 6.0 million resulted in loan originations—that’s an approval rate of 62.5 percent for both refinance and purchase originations.  Approval rates for conventional purchase applications as well as government backed loans –FHA, VA and Rural Housing Service— were about 69 percent.
In a report on the HMDA data issued yesterday, the Center for Responsible Lending said that despite a number of industry predictions, new data from the HMDA report revealed that Dodd-Frank’s mortgage protections and the Consumer Financial Protection Bureau’s related new mortgage regulations did not produce a decrease in mortgage accessibility for homebuyers…but “the data also show that borrowers of color and families with low-to-moderate incomes continue to be underserved in the mortgage market, especially by lenders who sell loans to Fannie Mae and Freddie Mac.”
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Government-backed Lending Rose 9 Percent
Homebuyers relied heavily on government-backed mortgages, particularly those insured by the FHA or guaranteed by the VA, to finance their purchases, but this reliance has declined somewhat in recent years. In 2014, the FHA-insured share of first-lien home purchase loans for 1-4 family, site-built owner-occupied properties was 21 percent—down from 24 percent in 2013, and down from its peak of 42 percent in 2009.  However, the number of all originated government-backed purchase loans increased 9 percent last year from 2013.
The VA-guaranteed share of such loans for 2014 was approximately 10 percent, increasing from 9 percent in 2013. Including Rural Housing Service loans, the overall government-backed share of such loans was 37 percent in 2014, edging down from 38 percent in 2013, and down from 54 percent in 2009.

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http://www.realestateeconomywatch.com/2015/09/hmda-approval-rates-vary-by-income-and-race/

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