Illinois in some respects is quite similar to the last state I profiled, New York. Like the Empire State, Illinois has a huge urban center (Chicago) similar to New York City and a lot of non-urban areas comparable to “upstate” New York. But there are significant differences in their Home Mortgage Disclosure Act profiles.
A LendingPatterns™ sort shows that Illinois has nowhere near the huge volume of jumbos mortgages New York had in 2015. In fact, by number Illinois had just 21,000 jumbo mortgages that year, or 7.4 percent of its total, giving conforming loans the lion’s share of the market. On the dollar side, Illinois jumbos had a bigger share than on the number side, 29 percent. But compare that to New York, where the dollar value of jumbos was more than 50 percent of the market!
Illinois actually had more originations by number of loans, though, 285,000 to New York’s 228,000 (I’m excluding mortgage purchases here). In dollar volume New York led Illinois by $80 billion to $66 billion. Illinois’ average loan amounts were lower than New York’s, at $239,000 for a first lien and $53,000 for a subordinate lien.
Another big difference between the two is in property type. Illinois had less than 100 basis points of share in multifamily mortgages, which was huge in New York. Illinois borrowers overwhelmingly (98.5 percent) went for one- to four-family properties.
Illinois showed a near-perfect split when it came to loan purpose in 2015. Purchases took 48 percent of the market, while refinancings made up 47 percent, with a small percentage going to home improvement loans.
Illinois borrowers tended to be white in large numbers, 72 percent (similar to New York). The biggest minority borrowers were Hispanics, at 8 percent, followed by Asians and Blacks at five percent.
Lenders to Illinois borrowers kept 26 percent of production in their portfolios. Non-agency investors led in the secondary market, with one quarter of all sales. Of the government agencies, Fannie Mae led with 20 percent, Freddie trailed just behind at 19 percent, and Ginnie Mae managed a ten percent share of the market.
Conventional mortgages, at 80 percent, far outpaced the governmental market. Of the guvvies, Federal Housing Administration mortgages had a 15 percent share, followed by Veterans Administration loans at four percent. Farm Service Administration/Rural Housing Service mortgages brought up the rear at 105 basis points.
Illinois had a significant percentage of investment mortgages, as nine percent of volume was for non-owner-occupied units. Owner-occupied took the other 91 percent.
Upper-income borrowers had the upper hand in share by income, at 45 percent, while the low- and moderate- income borrowers combined made up 26 percent of originations.
On the gender rollup (applications with at least one male versus apps with females and no males), the males took 74 percent share and females 20 percent.
Spreads came to 2.1 percent on first liens and 5.1 percent for subordinate liens, but as with other states, the percentage of mortgages where the spread is known is small, just five percent.
(Mark Fogarty is a journalist and analyst who has been covering the mortgage industry for more than 30 years.)