HMDA’s “FDIC lenders” category is huge, with more than 2,500 mortgage lenders that took more than one million home loan applications in 2014 and ended up originating 700,000 of them, a look through LendingPatterns™ shows.
While big, the FDIC category doesn’t actually include all FDIC-insured lenders. Any mortgage lender with more than $10 billion in assets, for instance, is classified as a CFPB lender, meaning it falls into the purview of the Consumer Financial Protection Bureau. But those 2,500 FDIC lenders (banks, savings banks and bank-affiliated mortgage banks) in this category extended more than $141 billion in home finance during 2014, for an average of about $215,000 per first mortgage.
By number of apps received, these banks originated 68 percent of them: 702,806 of 1,034,487. In terms of dollars, the origination percentage was almost exactly the same as the number percentage: 69 percent, or $141 billion of a total of $205 billion asked for.
HomeStreet Bank, Seattle, which has $5 billion in assets, tops the FDIC lender rankings of originations in both dollars asked for, $7.3 billion, and dollars granted, $4.5 billion. That comes to about a 62 percent originations rate.
George Mason Mortgage, Fairfax, Va., a subsidiary of Cardinal Bank, came in second in originations in the category at $3 billion, while Fremont Bank, Fremont, Calif. took the bronze at $2.6 billion.
Looking solely at origination dollars, FDIC lenders made 65 percent of their home loans to whites, with another 23.5 percent combined marked “unknown” or “NA” and the balance going to minorities. Asians had the largest share of the minority groups at four percent, followed by Hispanics at just under four percent and blacks at about 2.5 percent.
The great bulk of the origination dollars was conventional, at 86 percent. Of the government programs, the Federal Housing Administration led in share with about 6.5 percent.
Purchase money granted nearly doubled refinancing share at 2014, at 63 percent to 32 percent. Home improvement made up the rest, about 4.5 percent.
More than $100 billion of the $141 billion originated, 71 percent, went to owners who occupied their homes. Owners who didn’t occupy their homes had a share of 21 percent.
As in other categories I have looked at in previous blogs, upper income borrowers took more than half of the financing dollars, probably because they bought higher-priced homes. Their 53 percent share was followed by middle income borrowers at 15 percent, while the low and moderate income categories had a combined total of 12 percent.
Nearly half of those originated dollars stayed in lenders’ portfolios, a total of $67 billion or 47 percent of the $141 billion total. Of secondary mortgage market investors, non-agencies had the biggest share at 33 percent. Fannie Mae had the biggest federal agency share at 11 percent.
Nearly $100 billion of the amount granted by the FDIC lenders in 2014 was conforming (70 percent), with jumbo mortgages coming in at a 30 percent share.
First liens averaged $215,000, while subordinate liens averaged $70,000 apiece.
(Mark Fogarty is a journalist and analyst who has been covering the mortgage industry for more than 30 years.)