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Federal Financial Institutions Examination Council Announces Availability of
2014 Data on Mortgage Lending

The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data on mortgage lending transactions at 7,062 U.S. financial institutions covered by the Home Mortgage Disclosure Act (HMDA).  Covered institutions include banks, savings associations, credit unions, and mortgage companies. The HMDA data made available today cover 2014 lending activity, and include applications, originations, purchases and sales of loans, denials, and other actions related to applications.

The data released today also include disclosure statements for each financial institution, aggregate data for each metropolitan statistical area (MSA), nationwide summary statistics on lending patterns, and Loan/Application Registers (LARs) for each financial institution (LARs are modified to protect borrower privacy). The FFIEC prepares and distributes this information on behalf of its member agencies.

The HMDA data show the disposition of loan applications and include information on:

• loan amount
• loan type (such as conventional, Federal Housing Administration (FHA) or Veterans Administration (VA))
• purpose (home purchase, home improvement, or refinancing)
• property type (1-4 family, multifamily, or manufactured housing) 
• property location (MSA, state, county, and census tract)
• applicant characteristics (race, ethnicity, sex, and income)
• pricing-related data

The data also show whether a loan is subject to the Home Ownership and Equity Protection Act (HOEPA) and whether a loan is secured by a first or subordinate lien or is unsecured.
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Understanding the Data

Caution should be used when comparing HMDA data across multiple years for specific geographies due to the changes in MSA and tract boundaries and updates to the population and housing characteristics of census tracts. For example, some MSAs may have the same name and code number in both 2013 and 2014, even though the underlying geography is different.

The HMDA data alone cannot be used to determine whether a lender is complying with fair lending laws. They do not include many potential determinants of loan application and pricing decisions, such as the applicant’s credit history, the debt-to-income ratio, the loan-to-value ratio, and others. Therefore, when examiners conduct fair lending examinations, including ones involving loan pricing, they analyze additional information before reaching a determination about institutions’ compliance with fair lending laws.

Observations from the 2014 Data

For 2014, the number of reporting institutions declined approximately 2 percent to 7,062 from 2013, continuing a downward trend since 2006 when about 8,900 lenders reported HMDA data. 

The 2014 data include information on 9.9 million home loan applications—of which, nearly 6.0 million resulted in loan originations—and about 1.8 million loan purchases, for a total of nearly 11.7 million actions.

The data also include information on about 501,000 requests for preapprovals related to a home purchase loan. The total number of originated loans of all types and purposes declined by about 2.7 million, or 31 percent, from 2013. Refinance originations declined by 55 percent, whereas home purchase lending increased by about 4.0 percent.¹ 

From 2013 to 2014, the share of home purchase loans for 1-4 family properties made to black borrowers rose from 4.4 percent to nearly 4.9 percent, the share made to Hispanic white borrowers rose from 6.9 percent to 7.5 percent, and those made to Asian borrowers declined slightly from 6.0 percent to 5.7 percent. While the number of refinance loans for 1-4 family properties declined for each of these groups, the share of refinance loans made to black borrowers increased from 4.4 percent to 5.2 percent, the share made to Hispanic white borrowers rose from 5.0 percent to 6.0 percent, and those made to Asian borrowers fell from 4.9 percent to 4.5 percent.

In terms of borrower income, the share of 1-4 family home purchase loans made to low- and moderate-income borrowers (those with income of less than 80 percent of area median income) declined slightly from about 26 percent in 2013 to roughly 25 percent in 2014. Conversely, the share of refinance loans to low- and moderate-income borrowers increased slightly from 20 percent to 21 percent.

Following the recent financial crisis, homebuyers relied heavily on government-backed mortgages, particularly those insured by the FHA or guaranteed by the VA, to finance their purchases, but this reliance has declined somewhat in recent years. In 2014, the FHA-insured share of first-lien home purchase loans for 1-4 family, site-built owner-occupied properties was 21 percent—down from 24 percent in 2013, and down from its peak of 42 percent in 2009.

The VA-guaranteed share of such loans for 2014 was approximately 10 percent, increasing from 9 percent in 2013.  Including Rural Housing Service loans, the overall government-backed share of such loans was 37 percent in 2014, edging down from 38 percent in 2013, and down from 54 percent in 2009.

FHA-insured and VA-guaranteed loans tend to play a less prominent role in the refinance market compared to the home purchase market. In 2014, conventional loans accounted for 81 percent of all first-lien refinance mortgages for 1-4 family, site-built owner-occupied properties, down from about 84 percent in 2013, while FHA-insured loans accounted for about 9 percent—similar to 2013. The VA-guaranteed share of refinance loans increased from 6 percent to 10 percent since 2013.

The majority of higher-priced first-lien loans in 2014 were FHA-insured. About 45 percent of FHA-insured first-lien home purchase loans had APRs above the reporting threshold, similar to the percentage in the latter half of 2013. The FHA raised its annual mortgage insurance premium (MIP) slightly in April 2013, and extended the period over which MIP is required to be paid by borrowers in June 2013. These changes, particularly the latter, led to higher APRs for FHA loans. About three-quarters of FHA-insured purchase loans that met the higher-priced definition in 2014 had APRs that were less than 0.5 percentage points above the higher-priced threshold.

As noted above, the HMDA data indicate which loans are covered by HOEPA. Under HOEPA, certain types of mortgage loans that have interest rates or total points and fees above specified levels provide special consumer protections such as additional disclosures and various restrictions on loan terms. 

In January 2014, new rules went into effect that expanded the types of mortgage loans covered from refinance and home equity loans to also include home-purchase loans and home equity lines of credit, and added new protections such as mandatory homeownership counseling. In 2014, 1,263 loan originations covered by HOEPA were reported: 634 refinance loans, 227 home improvement loans and 401 home purchase loans. In 2013, 1,873 HOEPA loans were reported: 1,309 refinance loans and 564 home improvement loans.

In 2014, black and Hispanic white applicants experienced higher denial rates for conventional home purchase loans than non-Hispanic white applicants. The denial rate for Asian applicants is more comparable to the denial rate for non-Hispanic white applicants. These relationships are similar to those found in earlier years.

Additional HMDA Information

Financial institutions are required to make their disclosure statements available at their home offices. For other MSAs in which financial institutions have offices, an institution must either make the disclosure statement available at one branch within each MSA or provide a copy upon receiving a written request. Questions about a HMDA report for a specific institution should be directed to the institution’s supervisory agency at the number listed below.

• Federal Deposit Insurance Corporation — 877-275-3342; hearing impaired — 800-925-4618
• Board of Governors of the Federal Reserve System, HMDA Assistance Line — 202-452-2016 
• National Credit Union Administration, Office of Consumer Protection — 703-518-1140
• Office of the Comptroller of the Currency, Compliance Policy Division — 202-649-5470
• Consumer Financial Protection Bureau — 202-435-7000
• Department of Housing and Urban Development, Office of Housing — 202-708-0685

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For historical and more detailed data derived from the annual HMDA records, see forthcoming, “The 2014 Home Mortgage Disclosure Act Data” Federal Reserve Bulletin, http://www.federalreserve.gov/pubs/bulletin/2015/pdf/2014_HMDA.pdf (opens new window).

ALEXANDRIA, Va. (Sept. 23, 2015) – The National Credit Union Administration has scheduled a closed Board meeting for Thursday, Sept. 24, 2015, beginning at 6 p.m. to consider a supervisory matter.

The agenda for the Sept. 24 closed Board meeting is available online here.

ALEXANDRIA, Va. (Sept. 23, 2015) – Keys Federal Credit Union, of Key West, Florida, is once again under the control of its members, the National Credit Union Administration announced today.

“Although a long time in coming, the recovery of Keys Federal Credit Union is a great success story,” NCUA Board Chairman Debbie Matz said. “This remarkable recovery was made possible through the collaborative efforts of Keys’ management team and staff, its advisory board, NCUA staff, and the loyal members who stuck with their credit union through turbulent times.”

NCUA placed Keys into conservatorship in September 2009. In the first year, the credit union’s net worth ratio fell to 2.37 percent. Since then, the credit union has continued to make operating changes resulting in a reported net worth ratio of 5.75 percent as of June 30, 2015. Keys posted income of more than $1.2 million in 2014 and continues to show strong earnings.

Keys is the first credit union since 2013 to emerge from NCUA conservatorship. 

Chartered in 1940, Keys Federal Credit Union is the oldest financial institution in the Florida Keys and next month will celebrate 75 years of offering affordable financial services. Keys serves 10,624 members and has assets of $121.1 million. Headquartered in Key West, Keys operates three branches. Membership at Keys is open to individuals and their family members, who live, work, worship or attend school in Monroe County, Florida.

Member Deposits Protected up to $250,000 by Share Insurance Fund

ALEXANDRIA, Va. (Sept. 24, 2015) – The National Credit Union Administration today liquidated SWC Credit Union of Tampa, Florida.

Member deposits are federally insured by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

NCUA’s Asset Management and Assistance Center will issue correspondence in the near future to individuals holding verified share accounts in the credit union. Members with additional questions about their insurance coverage may contact the Center toll-free at 877-715-0777 Monday through Friday between 9 a.m. and 6 p.m. Eastern. Individuals may also visit the MyCreditUnion.gov (opens new window) website at any time for more information about insurance coverage.

The Florida Office of Financial Regulation had placed SWC into conservatorship and named NCUA as the agent for the conservator. NCUA made the decision to liquidate SWC and discontinue its operations after determining the credit union was unable to restore viable operations.

SWC Credit Union had 309 members and assets of $1.9 million, according to the credit union’s most recent Call Report. Chartered in 1941, SWC Credit Union served employees and various concessionaires of Sears, Roebuck & Company and their families in Hillsborough, Pinellas, Pasco, Manatee, Sarasota and Polk counties.

SWC is the seventh federally insured credit union liquidation in 2015.

Stakeholder Feedback on New Design, Functionality Welcomed

ALEXANDRIA, Va. (Sept. 28, 2015) – The National Credit Union Administration today invited stakeholders to preview and provide feedback on the design, functionality and navigation of a preview version of the agency’s new public website.

“One of my top priorities has been improving communications with stakeholders, and improving the online experience has been an important element of this goal,” NCUA Board Chairman Debbie Matz said. “The new website was developed with that goal in mind, so we’ve made it more intuitive and accessible. Whether the website is viewed on a smart phone, tablet, laptop or desktop, users should be able to quickly navigate and find the information they need.”

Based on feedback from stakeholders, the new test site, available online here, features a new professional look and feel, a mobile-responsive design and improved navigation that allows users to find information more easily. For example, the website incorporates a user-centric “I am a…” search feature that allows users to self-identify and quickly access the agency’s most frequently requested content. The preview site also features a redesigned newsroom where users can access the latest news, read articles from The NCUA Report (opens new window)and download graphics and photos.

“I encourage all interested parties to preview the website and provide us with feedback,” Matz said. “Your suggestions and critiques will allow us to refine the final product and ensure the new website will be a valuable and useful resource to the entire credit union community.”

During the new site’s preview period, the agency will continue to make additional improvements, add new features and enhance content. Users can send their comments on the preview of the new website by email to [email protected].

In addition, while the web team will make every effort to update the test website with the latest news and information, there may be delays as new features and content are added. For now, www.ncua.gov, will continue to be the definitive source for the latest news and information from NCUA until the new website is formally launched later in the year.

ALEXANDRIA, Va. (Sept. 28, 2015) – Credit unions can get valuable information on complying with fair lending laws during a webinar, “2015 Interagency Fair Lending Hot Topics,” sponsored by the Federal Reserve System.

The 90-minute webinar is scheduled for Thursday, Oct. 15, 2015, beginning at 2 p.m. Eastern. Online registration for the webinar is now open online here (opens new window). There is no charge.

Jamie Goodson, director of the Division of Consumer Compliance Policy and Outreach in NCUA’s Office of Consumer Protection, will join experts from the Federal Reserve Board, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Department of Justice and Department of Housing and Urban Development to discuss topics related to fair lending, including:

• Mortgage lending developments,
• Using data to evaluate fair lending risk,
• Compliance management,
• Pricing,
• Maternity leave discrimination,
• Post-origination risks, and
• Auto lending settlements.

Participants will be able to ask questions during the webinar, and they can send questions in advance by email.

The webinar is part of a series of consumer compliance events hosted by the Federal Reserve System and produced in conjunction with the quarterly newsletter Consumer Compliance Outlook (opens new window).

ALEXANDRIA, Va. (Sept. 30, 2015) – Credit unions in California counties affected by recent fires can make prudent efforts to help members in those areas, the National Credit Union Administration said today.

“Credit unions are about serving members, and when disasters, like the California fires, strike, they look for opportunities to help,” NCUA Board Chairman Debbie Matz said. “NCUA has been monitoring the situation closely and has remained in contact with credit unions in the affected areas. I’m happy to report no credit unions in the area have reported damage or interruptions to their daily operations as a result of the fires.”

Credit union members in areas affected by the fires should contact their credit unions if they need assistance. They can also contact NCUA’s Consumer Assistance Center toll-free at 800-755-1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.

Member deposits are federally insured by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

NCUA recognizes disasters can affect the orderly conduct of lending relationships with individual members and businesses. The agency encourages credit unions to exercise prudent efforts to modify terms of existing loans when appropriate, including extending repayment terms, restructuring debt obligations or easing credit terms to new loans consistent with safe and sound practices.

The fires began in early September and caused extensive damage in Amador, Calaveras, Lake, Napa and Sonoma counties in California. On Sept. 22, the federal government issued a Disaster Declaration for Calaveras and Lake counties.

Learn How to Gather and Use Data for Successful Marketing Campaigns

ALEXANDRIA, Va. (Oct. 1, 2015) – Successful marketing campaigns need good data to reach and influence members, and credit unions can get helpful information on getting and using data in an upcoming webinar, “Data Mining: Golden Nuggets for Your Marketing Campaign,” hosted by the National Credit Union Administration.
 
This 90-minute webinar will be held Wednesday, Oct. 21, beginning at 2 p.m. Eastern. Online registration is available here (opens new window). Participants will use this same link to log into the webinar. Registrants should allow pop-ups from this website. There is no charge for the webinar.
 
Vanessa Lowe, an economic development specialist with NCUA’s Office of Small Credit Union Initiatives, will be joined by two marketing experts: Renee Sattiewhite, president of Sattiewhite Training Productions, Inc., and Amanda Thomas McMeans, founder and president of the marketing firm Two Score. The discussion will cover topics that include:
 
Why data is so important for marketing;

• Capturing and using key member and profitability data;
• Calculating a marketing campaign’s return on investment;
• Top trends in credit union marketing today; and
• Maximizing success when working with a marketing consultant.

Participants may submit questions in advance at [email protected]. The subject line of the email should read, “Data Mining.” Participants with technical questions about accessing the webinar may email [email protected]. This webinar will be closed captioned and then archived online here approximately three weeks following the live event.

NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions, minority depository institutions and credit unions with a low-income designation.

NCUA Offering a New Video, a Consumer Twitter Chat and Online Resources

ALEXANDRIA, Va. (Oct. 1, 2015) – Cybercrime and terrorism remain serious concerns, and credit unions and their members can find valuable information from the National Credit Union Administration to help them protect themselves from cyberattacks.

October 2015 is the twelfth annual National Cyber Security Awareness Month, and NCUA Board Chairman Debbie Matz urged credit unions and their members to be watchful online.

“Criminals, hackers and terrorists work around-the-clock to pilfer sensitive data, steal money and disrupt networks,” Matz said. “Internet commerce and communications dominate the lives of most people every day and this demands constant vigilance on the part of consumers, financial institutions and government agencies. NCUA works hard every day of the year to provide detailed information to help the credit unions we regulate and the consumers we protect to prevent, detect and respond to these threats.”

As part of National Cyber Security Awareness Month, NCUA is scheduled to host a consumers’ Twitter chat with the Federal Trade Commission on Oct. 22. NCUA is also planning to release a new video for credit unions that discusses online security and the Federal Financial Institutions Examinations Council’s new cybersecurity assessment tool (opens new window).

For credit unions, NCUA offers information, including regulations and guidance, on the Cyber Security Resources page on the agency’s website. For consumers, NCUA’s MyCreditUnion.gov (opens new window) and its financial literacy microsite, Pocket Cents, offer helpful tips to protect their finances.

Throughout the month, NCUA will regularly post tips and best practices on Facebook (opens new window)and Twitter (opens new window) that credit unions and members can use to make electronic communications more secure.

Cost estimates of cybercrime vary, and they are always large. Earlier this year, the CEO of Lloyd’s, the British-based international insurance company, estimated cyberattacks cost businesses $400 billion annually. The FBI’s Internet Crime Complaint Center has received more than three million complaints since its inception in 2000 with an estimated dollar loss of more than $3 billion. The center receives an average of 22,000 complaints per month.

National Cyber Security Awareness Month is an initiative sponsored by Department of Homeland Security in cooperation with the National Cyber Security Alliance and the Multi-State Information Sharing and Analysis Center. The month raises awareness and educates Americans about cybersecurity as well as increasing the resiliency of the nation’s cyberinfrastructure. For more information, visit www.staysafeonline.org (opens new window).

Agency Monitoring Situation; Grants to Low-Income Credit Unions Available

ALEXANDRIA, Va. (Oct. 5, 2015) – The National Credit Union Administration is closely monitoring conditions in South Carolina counties hit by flooding and is prepared to assist credit unions in those areas.

Regional agency staff are contacting credit unions in areas hit by the flooding to determine if they are open. The agency will be ready to assist credit unions to maintain or restore normal operations, if necessary. NCUA’s Office of Small Credit Union Initiatives can provide Urgent Needs grants (opens new window)up to $7,500 to low-income credit unions for unexpected costs related to restoring operations disrupted by the floods.

President Obama and South Carolina Gov. Nikki Haley have both issued disaster declarations for the affected areas.

NCUA maintains a Hurricane and Disaster Information page on the agency’s website to provide links to resources. Credit union members with questions may contact the agency’s Consumer Assistance Center at 800-755-1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.

Members’ accounts in federally insured credit unions are protected by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.