HMDA Data Summary
The total number of rows in the 2021 Modified LARs (25.96 million) and the number of originated transactions (14.89 million), while very high by historical standards, are both around two percentage points higher than the 2020 Snapshot data.
What is a more intriguing trend is the apparent consolidation in the mortgage industry. The number of reporters continued to fall, from 4,483 to 4,186, a 6.6% drop. Meanwhile, the top reporter’s LAR was 5.5% larger in 2021 compared to 2020 (1.59 million compared to 1.50 million). The top ten reporters’ LARs were 6.1% larger in 2021 compared to 2020 (6.82 million compared to 7.23 million). At the same time, the top ten reporters’ share of the industry total LAR records increased by 1.19%, from 26.67% to 27.86%.
Loan Type and Loan Purpose
Loan type and loan purpose: Originated FHA lending was basically flat (-0.18% change). Conventional lending increased by 4.64%, from 11.64 million transactions to 12.18 million transactions. VA lending decreased by 12.47%, from 1.40 million transactions to 1.23 million, a decrease of 174,897 transactions. It appears that the demand for VA refinancings dropped after many VA loans were refinanced at the time when historically low rates first appeared in 2020. Originated refinancings, irrespective of loan type, were down 2.06% from 2020 to 2021, from 8.79 million to 8.61 million. Originated home purchase and other purpose lending both increased by about 8% between 2020 and 2021. Finally, originated home improvement activity increased by a whopping 19.55% between 2020 and 2021, from 455,732 to 544,826.
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