Financial Update (October-December 2000)

Masthead

Cover Story

Financial Services Strategic Plan

Supervising FHCs

New Lending Data

DEPARTMENTS

Did You Know?

Data Bank

The Docket

New Data Spotlight Lending Activity

Home mortgage lending activity dropped by 7 percent in 1999, but home purchase lending to Native Americans, African Americans, Asians and Hispanics grew considerably, according to Home Mortgage Disclosure Act (HMDA) data released by the Federal Financial Institutions Examination Council (FFIEC). In a separate release, the FFIEC reported that small business, small farm and community development lending increased in 1999 based on Community Reinvestment Act (CRA) data.

Home mortgage lending

The 1999 mortgage lending data reflect loan activity for more than 7,800 institutions covered by HMDA. The data include nearly 23 million reported loans and applications, a decrease of approximately 7 percent from 1998. This drop is primarily attributed to reduced refinancing activity partially offset by increased home purchase lending.

The number of home purchase loans extended in 1999 compared with 1998 increased 44 percent for Native Americans, 18 percent for Hispanics, 16 percent for Asians, 11 percent for African Americans and 1 percent for whites. For the first time in several years, the overall denial rate for conventional home purchase loans declined from the prior year — from 29 to 28 percent.

To get information on how to obtain the HMDA data, see the press release at www.ffiec.gov/hmcrpr/hm080800.htm.

CRA lending

The 1999 CRA data reflect originations and purchases of small business and small farm loans from 1,911 institutions. A total of 3.3 million small business loans, totaling $175 billion, and 221,000 small farm loans, totaling $12 billion, were reported for 1999. The level of activity for these loans for 1999 is higher than the level reported for 1998.

In 1999, commercial banks and savings associations reported community development lending totaling $17 billion, a 6 percent increase over the dollar amount of lending in 1998.

For more information on the CRA lending data, see the press release at www.ffiec.gov/hmcrpr/cra081100.htm.