2011 HMDA REPORT Creating opportunities for home ownership
About the HMDA Report The U.S. Home Mortgage Disclosure Act (HMDA), passed in 1975, requires financial institutions to maintain and disclose data about home purchases, pre-approvals, refinance and home improvement applications involving 1-to-4 unit and multi-family dwellings. The information from this data:
Helps public officials distribute public sector investments
Discover if financial institutions are service the housing needs of the community, and;
Identify where there are discriminatory lending practices.
About the HMDA Report The Charleston Trident Urban League, through this 2011 HMDA report, seeks to understand where the Charleston community is in terms of mortgage lending across the board.
The Housing Market In Crisis There was a 53% decrease in overall mortgage activity from 2007-2009 in the Charleston MSA.
Home Mortgage Originationsin the Charleston MSA Over a three year period, home loan originations for blacks were, on average, 9% of the total loans originated. Other minority applicants were, on average, 5% of the total loans originated.
Denial Ratios Applications Received Applications Denied
Reasons for Denial of ApplicationsBased on Race Black applicants are more likely to be denied a loan because of credit history.
Reasons for Denial of Applications Based on Income
Average Denial Ratios For Blacks vs Whites In The Charleston MSA, 2007-2009 Out of 20 financial institutions, 9 were at or below the average denial ratio each year.
Creating more opportunities in home ownership for blacks and other minorities. Recommendations
Minority Homeownership In Crisis The same holds true for households in the Charleston MSA. 40% of blacks own their own home compared to 79.7% of whites. Nationally, less than half of black households own their own home compared to three-quarters of whites.
Courses should be required for ALL income levels. Credit History is the primary reason for denial of loan applications for both blacks AND whites.
Recommendation #2: Increased Public Awareness Campaign
Recommendation #2: Increased Public Awareness Campaign Financial institutions of all sizes need to increase outreach and public awareness of mortgage options available. 15-30% of banks during the 2007-2009 period did not receive ANY black applications.