Latest 2023 Home Mortgage Disclosure Act (HMDA) The data is out, and it confirms some key trend lines in the mortgage industry: There’s significantly less interest in mortgages in 2023, and fewer banks think it’s worth participating in the market.
The complete data set comes from Consumer Financial Protection Bureau (CFPB) and federal financial institutions review board (FFIEC), includes information from 5,113 financial institutions, including mortgage companies, banks, savings associations and credit unions. The CFPB said the total number of reporting institutions increased by 14.6% compared with the previous year.
“HMDA data are the most comprehensive publicly available source of information on mortgage market activity,” the announcement said. “Industry, consumer groups, regulators and others use the data to assess potential fair lending risks and for other regulatory and information purposes.
“The data can also help the public evaluate how financial institutions are meeting the housing needs of local communities and facilitate fair lending, consumer compliance and Community Reinvestment Act (CRA) reviews by federal financial regulators.”
In addition to the full dataset, there is also a National Loan Rating Snapshot dataset, which contains the national HMDA dataset as of May 1, 2024.
Although the number of independent mortgage banks has grown, the total number of applications has been relatively low.
“The 2023 data include information on 10 million home loan applications, down from the 14.3 million reported in 2022,” the CFPB said in the snapshot. “Of those, 7.7 million were closed-end (such as home mortgage loans), 2.1 million were open-end (such as home equity lines of credit). Another 266,000 records were from financial institutions that took advantage of statutory partial exemptions but did not indicate whether they were closed-end or open-end.
Last year, non-bank mortgage companies accounted for 68.8% of all “first lien, one- to four-family, owner-occupied, owner-occupied home loans,” an increase from 60.2% in 2022. The share of loans to borrowers increased by 0.1% to 8.2%, while the share of white Hispanic borrowers grew from 9.1% to 9.9% during the same period.
In 2023, the rejection rates for black or African American and white Hispanic applicants were 16.6% and 12.0%, respectively. The rejection rates for Asian and non-Hispanic white applicants were 9.0% and 5.8%, respectively.
FFIEC also made other data products available on Friday, including the HMDA Dynamic State Lending Level Dataset, which is “updated weekly to reflect late submissions and resubmissions,” the CFPB said.
Aggregation and disclosure reports also help aggregate data from various financial institutions and geographic regions, while the HMDA Data Browser has user controls that allow the creation of custom tables and maps.
