FHA Insurance Market Share Up 30% says FFIEC

The Federal Financial Institutions Examination Council (FFIEC) on Thursday announced the availability of data on mortgage lending transactions at 8,124 U.S. financial institutions—including banks, credit unions, and mortgage companies—covered by the Home Mortgage Disclosure Act (HMDA). The data contains information on 2009 lending activity, including applications, originations, purchases of loans, denials, and other actions.

Data revealed an increasing reliance on home purchase loans backed by Federal Housing Administration (FHA) insurance, which insured 37 percent in 2009, up from 7 percent in 2007.  Lending for home purchases backed by the Veterans Administration (VA) also increased; the VA’s share of first-lien home purchase loans was 2.7 percent in 2007 and grew to 6.7 percent in 2009.

The number of reporting institutions fell 3 percent from 2008, due in large part to a 13-percent decline in the number of mortgage companies reporting data said the FFIEC. Originated loans of all types reportedly increased by about 1.8 million or 25 percent from 2008, due to a 67-percent increase in refinancing.

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The HMDA data included approximately 15 million applications and 4.3 million loan purchases. Nine-million applications resulted in loan originations and 210,000 additional requests for preapprovals did not result in a loan. The data included disclosure statements for each financial institution, aggregate data for metropolitan statistical areas (MSA), nationwide summary statistics regarding lending patterns, and loan/application registers (LARs) for each financial institution.

Loan applications were analyzed according to loan type (e.g., conventional or FHA), purpose (home purchase, home improvement, or refinancing); amount; property type (1- to 4-family, multi-family, or manufactured housing); property location; race, ethnicity, sex, and income; and census tract characteristics (minority composition and income).

Financial institution disclosure statements, individual institutions’ LAR data, and MSA and nationwide aggregate reports are available at www.ffiec.gov/hmda. Refer to the HMDA data products at www.ffiec.gov/hmda/hmdaproducts.htm for the item descriptions and formats.

Written by Clare Pierson

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