Home Mortgage Disclosure Act (HMDA) Data

1
Home Mortgage Disclosure Act (HMDA) Data

• Raphael W. Bostic
• University of Southern California
• Housing Statistics User Group West meeting at the
  University of California at Berkeley
• September 25, 2003

2
Outline

• HMDA background
• Data details
• Uses of the data
• Strengths and weaknesses

3
HMDA background

• Passed in 1975
• Objective to increase the amount of data on
  lending in the public domain
• Subsequent revisions
• 1989 Application-level reporting required
• 1993 Reporting requirement expanded
• 2003 Data elements added

4
Data Details Who Reports

• Depository institutions
• Extend at least 1 home loan in a calendar year
• Have an office in an MSA
• Have assets of 31 million or more
  (inflation-adjusted)
• Other mortgage lending institutions
• Extend at least 100 home loans in a year
• At least 10 million in assets (until this year)
• 5 or more applications in at least 1 MSA

5
Data Details What is Reported

• Report includes information for
• All applications received during the calendar
  year
• All loan purchases made during the calendar year

6
Data Details Data Elements

• Application data
• Loan characteristics
• Lender
• Size Dollar amount
• Type Conventional, FHA, VA
• Purpose Purchase, refinance, home improvement,
  multi-family
• Sale status If sold, who purchased the loan
  (Fannie Mae, Freddie Mac, etc.)
• Pricing Rate spread, whether a HOEPA loan
• Lien status First, subordinate, unsecured

7
Data Details Data Elements

• Application data
• Applicant characteristics
• Race or ethnicity
• Gender
• Income
• Loan disposition
• Approved, denied, withdrawn

8
Data Details Data Elements

• Property characteristics
• MSA, State, County, Census tract
• Whether a manufactured home
• Geographic data
• Associated Census file
• Median income, population (by race), etc.

9
Some Uses of the HMDA Data

• Fair lending enforcement
• Discrimination and redlining
• Neighborhood impact and development
• Banking activity
• Level of credit-granting activity
• Character of bank, market

10
Strengths

• Complete inventory for respondents
• Highly disaggregated data
• Relatively high frequency data

11
Weaknesses

• Incomplete characterization of lending
  decision-making process
• 1990-92 period not comparable to 1993-present
• No performance information
• Until now, no pricing information

12
Data Point of Contact

• Federal Financial Institutions Examination
  Council
• www.ffiec.gov
• Full dataset 50 per year for CD-ROM

13
Questions?