Early Look HMDA responders have reported making 21 percent of their 2016 mortgages to minorities.

Of lenders who have pre-reported their HMDA data to ComplianceTech as of Aug. 17, 558,000 of 2.7 million originations have gone to minorities, according to an analysis done through LendingPatterns™.

Total finance for those mortgage loans comes to $151 billion to date.

Forty percent of the minority mortgages (223,000) have gone to Hispanics, according to data these early reporters have submitted to the Federal Financial Institutions Examination Council, a unit of the Federal Reserve Bank and other federal agencies. Thirty percent (167,000) were extended to Asians, and 25 percent (141,000) to Blacks.

About five percent combined went to Native Americans, Native Hawaiians, and multi-racial borrowers. Native Hawaiians, a smaller cohort than Native Americans, got slightly more mortgages than Native Americans, and more mortgage dollars as well.

Though Hispanics got the most mortgages by number, Asians got more mortgage dollars. They received $68 billion of the total finance, or 45 percent. Hispanics got $48 billion, which was 32 percent. Blacks got $28 billion, 18 percent.

Nearly two thirds (64 percent) of mortgage dollars to minorities went to upper income borrowers, with the low- and moderate-income categories combined getting just 11.5 percent of the dollars. Upper income minority borrowers got 47 percent of the mortgages to minorities, by number.

The average first lien mortgage amount for all minorities was $282,000, and $62,000 for a subordinate lien.

A little less than three quarters of these loans found a home in the secondary market, with 27 percent remaining on lender books (the dollar percentage held in portfolio was somewhat higher, 38 percent).

The largest investor by number of loans was Fannie Mae at 23 percent, followed by Ginnie Mae at 19 percent and Freddie Mac at 17 percent and non-agency investors at 14 percent. This was fairly similar on the dollar side.

Loan type tilted heavily to conventional, with 77 percent of dollars going to this category. Of the guvvie insurers, the Federal Housing Administration had a 14 percent share of mortgage dollars and the Department of Veterans Administration nine percent. Mortgage share by numbers was similar.

Loan purpose was even, with 49 percent of minority borrowers opting for refinancing dollars and 48 percent purchase money. On the numbers side the split was 50-45 in favor of refis.

Minority borrowers took out a fair number of jumbo mortgages, 38 percent by dollars and 15 percent by number.

Of the 130 lenders that have reported making mortgages to minorities to date, Wells Fargo Bank has the most volume, nearly 20 percent of the market, at nearly $30 billion. JPMorgan Chase is second at $16.3 billion, edging out Bank of America, third at $16 billion. Rounding out the top five are Quicken Loans and Freedom Mortgage.

Of the top ten lenders to minorities to date, six are commercial banks and four are mortgage banks.

 

(Mark Fogarty is a journalist and analyst who has been covering the mortgage industry for more than 30 years.)

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