Spotlight on HDMA: Your Institution’s Public HMDA Data and What to Do with It


In an annual rite of autumn, on September 18 the Federal Financial Institutions Examination Council released 2011 Home Mortgage Disclosure Act (HMDA) data for U.S. mortgage lenders.  The public data contains information regarding nearly all home mortgage applications acted on in the prior calendar year, designated by loan purpose (i.e., home purchase, home refinance and home improvement).  The HMDA data covers home loan applications made to over 7,600 U.S. financial institutions, including banks, savings associations, credit unions and mortgage companies, and contains information on approximately 11.7 million applications, 7.1 million originations and 2.9 million purchases.

HMDA data provides a wealth of mortgage industry-related information, including data on application and loan volume, the proportion of loans backed by the Fair Housing Administration and Veterans Administration, and lender concentration in the mortgage market.  However, its most important function and the reason HMDA was enacted is the role the data plays in fair lending enforcement.  Toward this end, the outcome of each home mortgage loan application is classified according to the applicant’s race, ethnicity and gender.  HMDA data further allows analyses based on the site of the subject property, as well as the location of the lender. Read more…