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HMDA Report Shows 2012 Reporting Down, Mortgage Lending Up
WASHINGTON (9/19/13)--The Federal Financial Institutions Examination Council (FFIEC) Wednesday released data on the mortgage applications, originations, purchases, and denials that were filed in 2012 by credit unions and other financial institutions under the Home Mortgage Disclosure Act (HMDA).

The FFIEC reported that the total number of reporting intuitions has fallen, while mortgage lending is up. The 7,400 reporting institutions for 2012 is a 3% drop from 2011,  a decline the regulators attributed to the result of mergers, acquisitions and failures.

The total number of originated loans of all types increased by about 2.7 million, or 38%, from 2011, and that jump was attributed, in part, to a 54% increase in the number of refinancing. Home purchase lending also increased, but by a more modest 13%.

The FFIEC report also noted:
  • Since 2006, homebuyers have continued to be reliant on government-backed mortgages, such as those insured by the Federal Housing Administration (FHA) or the Veterans Administration (VA);
  • Although the shares of FHA- and VA-backed loans in the refinance market are much smaller than conventional loans, they experienced more growth from 2011 to 2012; and
  • Among refinancings, conventional loans increased about 51% from 2011 to 2012, while those backed by FHA insurance increased 78% and VA guarantees increased 90%.

The 2012 HMDA data are the first to use population and housing characteristic estimates from the 2010 Census. With regard to race, similar to previous years, the latest data showed applications for conventional home-purchase loans in 2012 from black and Hispanic white applicants experienced higher denial rates than non-Hispanic white applicants, while denial rate for Asian applicants was virtually the same as non-Hispanic white applicants.

HMDA was passed in 1979 to help monitor if financial institutions are serving the housing needs of their communities and to identify any potential discriminatory mortgage lending practices.

Under HDMA, credit unions and other financial institutions with total assets of less than $42 million as of Dec. 31, 2012 will not need to collect and report the data in 2013.

The Credit Union National Association is reviewing the extensive HMDA data and its analysis will be available to News Now readers, likely next week.

The FFIEC is comprised of the heads of the National Credit Union Administration, Office of the Comptroller of the Currency, Federal Deposit Insurance Corp., Consumer Financial Protection Bureau, the Council's State Liaison Committee, and a member of the Federal Reserve Board.

Use the resource link below for the full disclosure of the HMDA data.
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