1. Home Mortgage Disclosure Act Lending Patterns (HMDA): Cuyahoga County
Kyle Fee
Regional Community Development Advisor
February 15th, 2017

2. Disclaimer….
These are my views and not representative of the Federal Reserve Bank of Cleveland or the Federal Reserve System

3. Agenda Background and data National HMDA trends
Cuyahoga County HMDA trends
Applications
Originations
Origination rates
Average loan amounts
Market share by Lender

4. Background
HMDA requires many financial institutions to maintain, report, and publicly disclose information about mortgages.
HMDA was originally enacted by Congress in 1975 and is implemented by Regulation C. The Dodd-Frank Act transferred HMDA rulemaking authority from the Federal Reserve Board to the Consumer Financial Protection Bureau (CFPB) on July 21, 2011.
“Knowing your data”
Loan level data that is aggregated geographically
County level data from available
Census tract level data available in
Census tract boundary and naming changes from 2000 to 2010 boundaries in 2012

5. HMDA Data
Census tract analysis focuses on 1-4 family, owner-occupied, first lien loans
Applications
1-4 family (≈99% of all applications)
First lien (≈ 85% of all applications)
Owner occupied (≈ 90% of all applications)
All combined (≈ 76% of all applications)
Originations
1-4 family (≈99% of all originations)
First lien (≈ 89% of all originations)
Owner occupied (≈ 90% of all originations)
All combined (≈ 80% of all originations)

6. Tract Status Low-income = a median family income (MFI) of <50%
Moderate-income = a MFI of at least 50% and <80%
Middle-income = a MFI of at least 80% and less than 120%
Upper-income = a MFI of at least 120%

7. HMDA National Trends

8. Mortgage Applications & Originations
Millions
Applications
Originations
Source: HMDA

9. Home-Purchase Originations (1-4 family)
Conventional
FHA
FSA – Farmer service Agency
RHS- rural housing service VA
FSA/RHS
Source: HMDA

10. Share of Nonconventional Home Loans by Borrower Income*
Percent
Low or Moderate
Middle
Upper
Source: HMDA; * same pattern holds for neighborhood income

11. 2015 Home-Purchase Originations (1-4 family)
Percent
Source: HMDA

12. Share of Lending by Institution Type, 2015
Home purchase loans
Higher priced conventional loans
Source: HMDA

13. Cuyahoga County Trends

15. Total Applications, Cuyahoga County (All liens)
Thousands
Source: HMDA

16. Applications per 1,000 Housing Units By Neighborhood Income
Number
Upper
Middle
Moderate
Low
Source: HMDA

17. Source: HMDA

18. Total Originations, Cuyahoga County (All liens)
Thousands
Source: HMDA

19. Total Originations County Wide (All liens)
Thousands
Percent
30 year fixed mortgage rate (right axis)
Refinance
Purchase
Home improvement
Source: HMDA

20. Loan Purpose by Neighborhood Income
Low
Middle
Home improvement
Home improvement
Refinance
Refinance
Home purchase
Home purchase
Moderate
Upper
Home improvement
Home improvement
Refinance
Refinance
Home purchase
Home purchase
Source: HMDA

21. Total Originations by Neighborhood Income
Thousands
Upper
Middle
Moderate
Low
Source: HMDA

22. Source: HMDA

23. Total Origination Rate County Wide
Source: HMDA

24. Origination Rates By Neighborhood Income
Upper
Middle
Moderate
Low
Source: HMDA

25. Source: HMDA

26. Cuyahoga County Mortgage Origination Dollars
Average loan amount (Left axis, Thousands)
1-4 family, owner-occupied, first lien originations (Right axis, Billions)
Source: HMDA

27. Total Origination Dollars by Neighborhood Income
Millions of Dollars
Upper
Middle
Moderate
Low
Source: HMDA

28. Average Loan Amount by Neighborhood Income
Thousands of Dollars
Upper
Middle
Moderate
Low
Source: HMDA

29. Source: HMDA

30. Aggregate Statistics by Neighborhood Income, 2012-2015
Percent of County tracts
Percent of Originations (#)
Percent of Originations ($)
Low
25.0
2.0
1.4
Moderate
27.0
9.5
5.8
Middle
26.0
37.4
26.3
High
22.0
51.0
66.4
Source: HMDA

31. Source: HMDA

32. Source: HMDA

33. Cuyahoga County Market Share, 2012-2015 (#)
Source: HMDA

34. Cuyahoga County Market Share, 2012-2015 ($)
Source: HMDA

35. Concluding Thoughts
HMDA trends in Cuyahoga County mirror National trends
Well off (60-70%) peak levels of applications and originations
Increasing importance of unconventional loans, especially to low-mod income neighborhoods
Rise of independent mortgage company
Lending activity outcomes correlated with neighborhood income levels
Significant geographic variation of lending activity outcomes within Cuyahoga County

36. Concluding Thoughts Continued
Composition of originations has changed; 60/40 in favor of home purchases
Origination rates have been relatively constant since 2004
Loans in low income neighborhoods account for just 2% of total county originations with a majority taking place in 6 low income tracts
Third Federal Savings and Loan is the largest mortgage lender in the county over the past 4 years.