2009 HMDA Data Point to Rebounding Loan Volumes, Larger Role for Government Guarantees
Overall mortgage loan volume rebounded in 2009, following two years of significant declines, according to new Home Mortgage Disclosure Act (HMDA) data. An article by Robert B. Avery, Neil Bhutta, Kenneth P. Brevoort, and Glenn B. Canner of the Federal Reserve Board highlights this fact and provides other insights gleaned from the data. The article, "The 2009 HMDA Data: The Mortgage Market in a Time of Low Interest Rates and Economic Distress," is featured in the Sept. 20 issue of the Federal Reserve Bulletin.
The 2009 HMDA data consists of loan information reported by more than 8,100 home lenders and gathered by the Federal Financial Institutions Examination Council. HMDA requires most mortgage lenders that operate in metropolitan areas to provide disclosure information about their home-lending activity, including the type, purpose, and characteristics of the home mortgages they originate or purchase, as well as loan pricing information and demographic information about the borrowers.
Refinances, new home loans drive loan volumes
The decline in home-purchase lending could have been much steeper if not for first-time homebuyers, who took advantage of favorable conditions such as historically low interest rates, falling house prices, and the $8,000 federal tax credit for first-time homebuyers, the authors wrote.
Loans backed by VA, FHA rise sharply
September 28, 2010