The share of mortgages originated by non-depository, independent mortgage companies accounted for 68.8% of first lien, one- to four-family, site-built, owner-occupied home-purchase loans in 2023, up from 60.2% in 2022, according to 2023 Home Mortgage Disclosure Act (HMDA) data published by the Federal Financial Institutions Examination Council's (FFIEC) last week. The Consumer Financial Protection Bureau (CFPB) announced the FFIEC's publication in a press release, Friday.
Intercontinental Exchange, Inc. (ICE) reported in March that only 4.3 million mortgages were originated in 2023, a 30-year low.
The 2023 HMDA data includes information on 10 million home loan applications, a decrease from the 14.3 million reported in 2022, including 7.7 million closed-end and 2.1 million open-end mortgage applications. Another 266,000 records are from financial institutions making use of statutory partial exemptions and did not indicate whether they were closed-end or open-end.
The release included the Snapshot National Loan Level Dataset, containing national HMDA datasets as of May 1, 2024. The Snapshot reveals that the share of closed-end home purchase loans for first lien, one- to four-family, site-built, owner-occupied properties made to Black or African American borrowers rose slightly from 8.1% in 2022 to 8.2% in 2023. The share made to Hispanic-White borrowers increased from 9.1% to 9.9%, and the share made to Asian borrowers increased slightly from 7.6% to 7.7%, per the CFPB's analysis of the data.
Also revealed in the Snapshot, Black or African American and Hispanic-White applicants experienced denial rates for first lien, one- to four-family, site-built, owner-occupied conventional, closed-end home purchase loans of 16.6% and 12%, respectively, in 2023. Denial rates for Asian and non-Hispanic-White applicants were 9% and 5.8%, respectively.
The FFIEC also published several other annual data products last week to serve a variety of data users. The HMDA Dynamic National Loan-Level Dataset is updated on a weekly basis to reflect late submissions and resubmissions. Aggregate and Disclosure Reports provide summary information on individual financial institutions and geographies.
The HMDA Data Browser allows users to create custom tables, create interactive maps, and download datasets that can be further analyzed.
