All lenders in the home mortgage lending business want to make more loans. That’s why they are in business. Many lenders do a good job planning and executing outreach strategies to make loans to everyone. However, some lenders do a better job than other lenders in making credit available to underserved borrowers. As a retail or wholesale lender, do you know where you rank and how well you perform compared to your peers and competitors? If you purchased loans, for example, through a correspondent network, do you know the racial and applicant and tract income distribution of loans made by the lenders from whom you buy loans? Do you know whether these lenders are meeting the home mortgage credit needs of minorities and low- and moderate-income borrowers? The answer to these questions is important to all mortgage lending stakeholders in your institution.
Of course, all LendingPatterns™ users know that the answers to these questions and more are available in the software. As compliance professionals, we know you are busy running reports and conducting fair lending, market ranking and census demographic analyses. Add to this exhaustive to-do list creating custom peer groups, custom geographies, evaluating loan scoping opportunities, etc.…there is no time for providing market share information to your branch network.
ComplianceTech has a solution that we encourage you to share with all mortgage stakeholders. There is a new website at www.LendingPatternsLite.com. It uses Home Mortgage Disclosure Act (HMDA) data to get answers to some basic questions about lender performance. It is ComplianceTech’s contribution to the public discourse on home mortgage lending in America. With your registration, you have free access to several years of data on thousands of lenders. Tables and charts display each lender’s data nationally, by state, by metro area, and by congressional districts.
The website ranks lenders by the various geographies as well as by other metrics, including the number of applications, the number and rate of loans originated and the rate of subprime lending. The tables compare each lender’s performance to the national average origination rate, denial rate and subprime rate. In addition, the pie charts in LendingPatterns Lite™ graphically show the distribution by race, income, gender, loan type, loan purpose and action taken.
There is something there for everyone. Encourage your colleagues to leverage HMDA data to boost marketing efforts at the local level.
Figure 1: LendingPatterns Lite™ interface
Figure 2: Example of LendingPatterns Lite™ report based on HMDA data
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