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Demographic alert: tract income changes for 2019
This is the second blog in a series about the the 2019 FFIEC census demographic file which was released on August 30, 2019. Into that file FFIEC incorporated September 2018 Office of Management and Budget MSA/Metropolitan Division boundary definitions. As a result there some important changes to tract income categories to be aware of. Roughly…
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What you need to know about recent changes to MSAs/Metropolitan Divisions
Institutions who are covered by the Community Reinvestment Act (CRA) will want to pay particular attention to recent changes to MSAs and Metropolitan Divisions and median family incomes (MFIs). In the HMDA/fair lending world, whether you are looking at a distribution of applications by metro area or applicant income category (low/moderate/middle/upper), the changes will be…
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Public 2018 HMDA reveals little variation in debt ratios across metro areas
Mortgage professionals, policy makers, homebuyer’s, real estate agents, and prepurchase housing counselors will be curious to know about mortgage affordability in a neighborhood, city, county, or metro area. Fortunately, the public HMDA data provides a plethora of debt ratio information for home purchase loans that closed in 2018. Using the debt ratios, I will attempt…
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Open-end second-lien home improvement market concentrated in coastal cities
Prior to 2018, HMDA reporting for lines of credit was optional. It turns out that in 2018 $21.1 billion in credit was extended in transactions within the following parameters: Conventional Second lien Home improvement Owner occupied as a principal or second residence Open-end lines of credit A big question is where these transactions are concentrated.…
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Six HMDA Analyses You Never Thought Possible
I made a list of six intriguing analyses that can be done with the public 2018 HMDA data. Possibilities are almost endless. Affordability Analysis You can find where the borrowers are who can afford homes above a particular threshold (e.g., $1 million) using debt-to-income ratios, combined loan-to-value (CLTV) ratios, annual incomes, and appraised value. For…
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Aspects of Preapproval Analysis You May Not Have Thought About
Institutions with preapproval programs should pay close attention to how they incorporate preapproval applications in fair lending reviews. Fortunately, LendingPatterns™ and Fair Lending Magic™ provide robust tools that allow you to produce a thorough analysis. Importantly, LendingPatterns™ allows users to run the popular Introductory Fair Lending Analysis and Lending Disparity Profile reports with a filter…
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Almost 2019: Year-in review perspective of HMDA developments
As we ring in the new year, it is helpful to recap where we are on three different HMDA fronts: 1) data collection, 2) ensuring data quality within the private data, and 3) disclosure and analysis of public data. In each area, I’ll describe the major developments over the last year or so and discuss…
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DIY Statistical Analysis of HMDA Data
HMDA data is not just about collecting and reporting. If used right, it can be a strategic asset that can produce bottom-line results. I encourage you to make the most of your data by asking and answering questions based on HMDA results you see in LendingPatterns™. For example, you might want to further investigate penetration…
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What’s the latest on Public 2017 HMDA Data?
In years past, FFIEC’s release of public HMDA data from the previous year had been finalized by November. But not so this year. My colleagues and I have been getting questions about whether the 2017 public data are final, so this blog will hopefully provide clarity on that topic. Visitors to the LendingPatterns™ website are…
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What the HMDA Data Reveals about the Future of Private Label Securities
In the sixties they asked, “Where have all the flowers gone?” Today I wonder: Where have all the spread loans gone? Running historical trend charts in LendingPatterns™ reveal that spread lending still exists. The next logical question is: Which investors are meeting the secondary market needs for these loans? Or more importantly, who is absorbing…