ComplianceTech releases unique findings from its web-based LendingPatterns™ application based on the 2016 Home Mortgage Disclosure Act (HMDA) data

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ComplianceTech, McLean, VA-based fair lending, HMDA and CRA software analysis company, released unique insights from its web-based LendingPatterns™ application. These reports were made possible by last month’s public release of the 2016 Home Mortgage Disclosure Act (HMDA) data.

Lenders by Regulatory Agency

I am proud that we are releasing our 13th year of HMDA data in LendingPatterns™. It is extremely comprehensive and able to highlight trends and address complex questions in the home mortgage lending industry.

ComplianceTech, McLean, VA-based fair lending, HMDA and CRA software analysis company, released unique insights from its web-based LendingPatterns™ application today at the Mortgage Bankers Association (MBA) Annual Convention in Denver, Colorado. These reports were made possible by last month’s public release of the 2016 Home Mortgage Disclosure Act (HMDA) data.

Lenders grouped by regulatory agency reported show Federal Deposit Insurance Corporation (FDIC) regulated banks to be the largest group of home mortgage lenders at 35.61%. This is followed by credit unions at 28.93%, independent mortgage companies at 13.18%, Office of the Comptroller of the Currency (OCC) regulated banks at 12.32%, Federal Reserve banks at 8.18% and lenders with over $10 Billion in assets at 1.79% (CFPB).

LendingPatterns™ shows independent mortgage companies reported nearly half of all 2016 HMDA reportable applications at 48.15%. It is important to note that the percentage could actually be higher because there are independent mortgage companies in the lender group with assets of $10 Billion (CFPB). There are also credit unions reporting HMDA with CFPB as the regulatory agency.

Geographically, LendingPatterns™ shows the top market for home purchase loans to be the Atlanta metropolitan statistical area (MSA), followed by the Chicago, New York, Houston and Phoenix MSAs.

In comparison, the top market for refinance loans is the Los Angeles MSA, followed by the Chicago, Washington, DC, Denver and Riverside-San Bernardino MSAs.

The Los Angeles MSA tops the list for home improvement loans, followed by the Washington, DC, Atlanta, Denver and Pittsburgh MSAs.

Another key insight shows that there are 299 lenders nationwide whose primary focus is high cost lending. LendingPatterns™ creates this lender group when a lender reports more than half of its loans with a HMDA reportable spread. The top 5 MSAs with the high cost lending are the Houston, San Antonio, Dallas-Plano-Irving, Warren-Troy-Farmington Hills and Los Angeles MSAs.

The state with the largest number of high cost loans is Texas, followed by California, Florida, Alabama and Louisiana.

Using the Robust Peer selection module in LendingPatterns™, ComplianceTech identified key groups of lenders whose primary focus is on different types of lending activity. There are 117 lenders who focus on FHA lending and 42 lenders whose focus is manufactured housing lending. It is interesting to note that most lenders focus on conventional lending (6,428) and over 4,000 lenders do not sell their loans in the secondary market (4,482).

With respect to the secondary market, Non- Agency investors bought the highest percentage of loans sold in the secondary market at 25.92%, followed by Fannie Mae at 20.59%, Ginnie Mae at 14.68%, Freddie Mac at 13.24% and Farmer Mac at 0.01%. Many lenders do not sell loans in the secondary market so the HMDA data show 25.56% of loans not sold.

“I am proud that we are releasing our 13th year of HMDA data in LendingPatterns™. It is extremely comprehensive and able to highlight trends and address complex questions in the home mortgage lending industry,” said Maurice Jourdain-Earl, Managing Director of ComplianceTech.

ComplianceTech, based in McLean, VA is a leading provider of fair lending and CRA solutions to the federal government, lending institutions, law firms, community organizations and researchers. The company is best known for its software products LendingPatterns™ and Fair Lending Magic™. For more information, contact Dana Ginsburg at DanaGinsburg(at)compliancetech(dot)com or by phone (202) 618-7079.

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Dana Ginsburg
ComplianceTech
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