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HMDAwiki

Page history last edited by Larry Gillick 15 years, 4 months ago
CARR > Not-so-Huge Project > HMDAwiki

 

Hello! There should be enough information posted here to decipher the HMDA data. Please feel free to post hints & suggestions. It's a wiki, right?

 


  

Q & A

 

Where is this information from?

The HMDA data is from NICAR.

The explanations on this wiki come from two sources: McGinty and Hudclips.org

FYI, information quoted from Hudclips.org will be in boxes, much like this one.

Who reports HMDA data to the Fed?

(from Jo Craven McGinty's out-of-print beat book)

  • Banks
  • Savings & Loans
  • Savings Banks
  • Credit Unions

 

Which banks, savings & loans, savings banks & credit unions?

 

  • At the time of our class data, those with assets of more than $10 million and offices in metropolitan areas.
  • Certain mortgage companies and holding companies
  • Some independent mortgage companies (those with 100 or more home purchase or refinancing loans in the previous calendar year)

 

Can I get fresh data without paying NICAR?

Yup. Call the HMDA Assistance Line (202-452-2016) and be prepared to extract raw data from special HMDA software (http://www.ffiec.gov/hmda/guide.htm).

 

Can I join the TS and LAR by the Respondent ID fields?

Almost. Different agencies provide HMDA data and they don't coordinate Respondent IDs, so Respondent ID isn't unique without the Agency field.

So, how do you cope with Agency/Respondent ID fields?

I create a new field, made up of Agency and Respondent ID data. I usually call it "ID" or "UniqueID" - mostly because that's easy to remember.

For example, if the Agency is coded as '5' and the Respondent ID is coded as 1234567890, the new ID field would be coded as 51234567890.

 

The Data Files

HMDA data is held in two files, TS.dbf (or .xls) and HMDA.dbf (or .xls)

TS.dbf/.xls: The Transmittal Sheet holds information about lenders

  • Name
  • Address
  • etc.
HMDA.dbf/.xls: The Loan Application Register holds information about loan applications

Would it make our lives easier if this file was called LAR.dbf (or .xls)? Probably, but it's not.

  • Applicant's race
  • Applicant's sex
  • Applicant's AGI (Annual Gross Income)
  • Purpose of home loan
  • Whether applicant intends to live in the home
  • Final disposition of application (granted, not granted)
  • etc.

 

Database Formats (for our class data)

 

Transmittal Sheet (TS.dbf/.xls)

 

Fields Characters Type
"As of" date 4 Numeric
Agency Code 1 Alpha
Respondent ID 10 Alpha
Respondent Mail Name 30 Alpha
Respondent Mail Address 40 Alpha
Respondent Mail City 25 Alpha
Respondent Mail State 2 Alpha
Respondent Mail ZIP 10 Alpha
Perent Mail Name 30 Alpha
Parent Mail Address 40 Alpha
Parent Mail City 25 Alpha
Parent Mail State 2 Alpha
Parent Mail ZIP 10 Alpha
Edit Status 1 Alpha
Tax ID 10 Alpha

 

 

Loan Application Register (HMDA.dbf/.xls)

 

Fields Characters Type
"As of" date 4 Numeric
Agency Code 1 Alpha
Respondent ID 10 Alpha
Loan Type 1 Numeric
Loan Purpose 1 Numeric
Occupancy 1 Numeric
Loan Amount 5 Numeric
Action Type 1 Numeric
Reported MSA 4 Alpha
State Code 2 Alpha
County Code 3 Alpha
Census Tract Number 8 Alpha
Applicant Race 1 Numeric
Co-applicant Race 1 Numeric
Applicant Sex 1 Numeric
Co-applicant Sex 1 Numeric
Applicant Income 4 Alpha
Purchaser Type 1 Alpha
Denial Reason 1 1 Alpha
Denial Reason 2 1 Alpha
Denial Reason 3 1 Alpha
Edit Status 1 Alpha
Sequence Number 7 Alpha
Population 8 Alpha
Minority Population 8 Alpha
Minority Population % 7 Alpha
Median Income 8 Alpha
Tract to MSA Income % 7 Alpha
Number of Owner-occupied Units 8 Alpha
Number of Owner 1 to 4 Units 8 Alpha

 

LAR Code Sheet

(from McGinty and Hudclips.org)

 

Respondent

 

Respondent ID: 10 character ID

 

Agency

 

  1. Office of the Comptroller of the Currency
  2. Federal Reserve Board
  3. Federal Deposit Insurance Corporation
  4. Office of Thrift and Supervision
  5. National Credit Union Association
  6. There is no 6
  7. Housing and Urban Development

 

Edit Status

  • Blank -- No edit failure
  • 5. Validity edit failure only
  • 6. Quality edit failure only
  • 7. Validity and quality failures

 

Property

  • MSA: Metropolitan Statistical Area
  • State: Two-digit ID
  • County: Three-digit ID
  • Tract: Census tract number

 

Loan

 

Loan Type

 

  1. Conventional (any loan other than FHA, VA or FmHA loans)
  2. FHA-insured (Federal Housing Administration)
  3. VA-guaranteed (Veterans Administration)
  4. FmHA-insured (Farmers Home Administration)

 

Loan Purpose

 

  1. Home purchase (one-to-four family)
  2. Home improvement (one-to-four family)
  3. Refinancing (home purchase or home improvement, one-to-four family)
  4. Multifamily dwelling (home purchase, home improvement, and refinancings)

 

Explanation of loan purpose codes.

Code 1: Home purchase.

  1. This code applies to loans and applications made for the purpose of purchasing a residential dwelling for one to four families, if the loan is to be secured by the dwelling being purchased or by another dwelling.
  2. At your option, you may use code 1 for loans that are made for home improvement purposes but are secured by a first lien, if you normally classify such first-lien loans as home purchase loans.

Code 2: Home improvement.

  1. Code 2 applies to loans and applications for loans that (1) the borrowers have said will be used for repairing, rehabilitating, or remodeling one-to-four family residential dwellings, and (2) are recorded on your books as home improvement loans.
  2. Report both secured and unsecured loans.
  3. At your option, you may report data about home equity lines of credit -- even if the credit line is not recorded on your institution's books as a home improvement loan. If you choose to do so, you may report a home equity line of credit as a home improvement loan if the borrower or applicant indicates, at the time of application or when the account is opened, that some portion of the proceeds will be used for home improvement. (See Paragraph 8. "Loan amount," below.) If you report originations of home equity lines of credit, you must also report applications for such loans that did not result in originations.

Code 3: Refinancings.

  1. Use this code for refinancings (and applications for refinancings) of home purchase or home improvement loans on one-to-four family residential dwellings. A refinancing involves the satisfaction of an existing obligation that is replaced by a new obligation undertaken by the same borrower. But do not report a refinancing if, under the loan agreement, you are unconditionally obligated to renew or refinance the obligation, or you are obligated to renew or refinance the obligation subject to conditions within the borrower's control.
  2. Use this code whether or not you were the original creditor on the loan being refinanced, and whether or not the refinancing involves an increase in the outstanding principal.
  3. Report a refinancing if the amount outstanding on the original loan, plus the amount of new money (if any) that is for home purchase or home improvement purposes, is more than 50 percent of the total new loan amount. Do not report a refinancing if 50 percent or less of the loan proceeds or the amount applied for is for home purchase or home improvement.

Code 4: Multifamily dwelling.

  1. Use this code for loans and loan applications on dwellings for five or more families, including home purchase loans, refinancings, and loans for repairing, rehabilitation, and remodeling purposes.
  2. Do not use this code for loans on individual condominium or cooperative units; use codes 1, 2, or 3 for such loans, as applicable.

 

Owner occupancy 

  1. Owner-occupied as a principal dwelling
  2. Not owner-occupied
  3. Not applicable
Explanation of owner-occupancy codes

a. Use code 2 for second homes or vacation homes,

as well as rental properties.

b. Use code 2 only for nonoccupant loans, or

applications for nonoccupant loans, related to

one-to-four family dwellings (including

individual condominium or cooperative units).

c. Use code 3 if the property to which the loan

relates is a multifamily dwelling; is not

located in an MSA; or is located in an MSA in

which your institution has neither a home nor

a branch office.

d. For purchased loans, you may assume that the

property will be owner-occupied as a principal

dwelling (code 1) unless the loan documents or

application contain information to the

contrary.

Loan amount

Amount in thousands rounding to the nearest thousand ($500 should be rounded up to the next $1,000). For example, a loan for $167,300 should be entered as 167 and one for $15,500 as 16.

Explanation of loan amount

a. For home purchase loans that you originate,

enter the principal amount of the loan as the

loan amount. For home purchase loans that you

purchase, enter the unpaid principal balance

of the loan at the time of purchase as the

loan amount.

b. For home improvement loans (both originations

and purchases), you may include unpaid finance

charges in the loan amount if that is how you

record such loans on your books.

c. For home equity lines of credit (if you have

chosen to report them), enter as the loan

amount only that portion of the line that the

applicant or borrower has indicated, at the

time the application is made or when the

account is opened, as being for home

improvement. Report the loan amount for

applications that did not result in

originations in the same manner. Report only

in the year the line is established.

d. For refinancings that are to be reported,

indicate the total amount of the refinancing,

including the amount outstanding on the

original loan and the amount of new money (if

any).

e. For a loan application that was denied or

withdrawn, enter the amount applied for.

f. If you offered to lend less than the applicant

applied for, enter the amount of the loan if

the offer was accepted by the applicant. If

the offer was not accepted, enter the amount

that the applicant applied for.

Action taken

 

  1. Loan originated (application approved and loan accepted by applicant) - Prof. G.
  2. Application approved but not accepted by applicant
  3. Application denied
  4. Application withdrawn
  5. File closed for incompleteness
  6. Loan purchased by your institution (Banks buy each other's loans. If a lending institution purchases a loan, this is the proper code.) - Prof. G.
Explanation of action codes

a. Use code 2 when an application is approved but

the applicant fails to respond to your

notification of approval or your commitment

letter within the specified time.

b. Use code 4 only when an application is

expressly withdrawn by the applicant before a

credit decision was made.

c. Use code 5 if you sent a written notice of

incompleteness under section 202.9(c)(2) of

Regulation B (Equal Credit Opportunity) and

the applicant failed to respond to your

request for additional information within the

period of time specified in your notice.

3. Date of action. Enter the date by month, day, and

year, using numerals in the form MM/DD/YY (for

example, 02/22/92).

a. For loans originated, enter the settlement or

closing date. For loans purchased, enter the

date of purchase by your institution.

b. For applications denied, applications approved

but not accepted by the applicant, and files

closed for incompleteness, enter the date that

the action was taken by your institution or

the date the notice was sent to the applicant.

c. For applications withdrawn, enter the date you

received the applicant's express withdrawal;

or you may enter the date shown on the

notification from the applicant, in the case

of a written withdrawal.

C. Property location. In these columns enter the

applicable codes for the MSA, state, county, and census

tract for the property to which a loan relates. For

home purchase loans secured by one dwelling, but made

for the purpose of purchasing another dwelling, report

the property location for the property in which the

security interest is to be taken. If the home purchase

loan is secured by more than one property, report the

location data for the property being purchased. (See

paragraphs 5. and 6. below for treatment of loans on

property outside the MSAs in which you have offices.)

1. MSA. For each loan or loan application, indicate

the location of the property by the MSA number.

Enter only the MSA number, not the MSA name. MSA

boundaries are defined by the U.S. Office of

Management and Budget; use the boundaries that were

in effect on January 1 of the calendar year for

which you are reporting. A listing of MSAs is

available from your regional supervisory agency or

the FFIEC. (In these instructions, the term MSA

refers to both metropolitan statistical area and

primary metropolitan statistical area.)

2. State and county. You must use the Federal

Information Processing Standard (FIPS) two-digit

numerical code for the state and the three-digit

numerical code for the county. These codes are

available from your regional supervisory agency or

the FFIEC. Do not use the letter abbreviations

used by the U.S. Postal Service.

3. Census tract. Indicate the census tract where the

property is located.

a. Enter the code "NA" if the property is located

in an area not divided into census tracts on

the U.S. Census Bureau's census-tract outline

maps (see paragraph 4. below).

b. If the property is located in a county with a

population of 30,000 or less in the 1990

census (as determined by the Census Bureau's

1990 CPH-2 population series), enter "NA"

(even if the population has increased above

30,000 since 1990), or you may enter the

census tract number.

4. Census tract number. For the census tract number,

consult the U. S. Census Bureau's Census

Tract/Street Index for 1990, and for addresses not

listed in the index, consult the Census Bureau's

census tract outline maps. You must use the maps

from the Census Bureau's 1990 CPH-3 series, or

equivalent 1990 census data from the Census Bureau

(such as the Census TIGER/Line File) or from a

private publisher.

5. Outside-MSA. For loans on property located outside

the MSAs in which you have a home or branch office

(or outside any MSA), you may enter the MSA, state,

county, and census tract numbers or you may enter

the code "NA" in each of these columns.

6. Nondepository lenders. If you are a for-profit

mortgage lending institution (other than a bank,

savings association, or credit union), and in the

preceding calendar year you received applications

for, or originated or purchased, loans for home

purchase or home improvement adding up to a total

of five or more for a given MSA, you are deemed to

have a branch office in that MSA, whether or not

you have a physical office there. As a result, you

will have to enter the MSA, state, county, and

census tract numbers for any transactions in that

MSA. Because you must keep accurate records about

lending within MSAs in the current calendar year in

order to report data accurately the following year,

to comply with this rule you may find it easier to

enter the geographic information routinely for any

property located within any MSA.

Applicant Information

 

Race or national origin of borrower or applicant.

If there is more than one co-applicant, this information is provided only for the first co-applicant listed on the application form.

  1. American Indian or Alaskan Native
  2. Asian or Pacific Islander
  3. Black
  4. Hispanic
  5. White
  6. Other
  7. Information not provided by applicant in mail or telephone application
  8. Not applicable

 

Sex of borrower or applicant

If there is more than one co-applicant, this information is provided only for the first co-applicant listed on the application form.

  1. Male
  2. Female
  3. Information not provided by applicant in mail or telephone application
  4. Not applicable

 

Income

Explanation of Income

 

a. Round all dollar amounts to the nearest

thousand (round $500 up to the next $1,000),

and show in terms of thousands. For example,

$35,500 should be reported as 36.

b. For loans on multifamily dwellings, enter

"NA."

c. If no income information is asked for or

relied on in the credit decision (such as in

"no income verification" type loans), enter

"NA."

Purchaser

Enter the applicable code to indicate whether a loan that your institution originated or purchased was then sold to a secondary market entity within the same calendar year:

0. Loan was not originated or was not sold in calendar year covered by register

  1. FNMA (Federal National Mortgage Association)
  2. GNMA (Government National Mortgage Association)
  3. FHLMC (Federal Home Loan Mortgage Corporation)
  4. FmHA (Farmers Home Administration)
  5. Commercial bank
  6. Savings bank or savings association
  7. Life insurance company
  8. Affiliate institution
  9. Other type of purchaser
Explanation of codes

a. Enter the code 0 for applications that were

denied, withdrawn, or approved but not

accepted by the applicant; and for files

closed for incompleteness.

b. If you originated or purchased a loan and did

not sell it during that same calendar year,

enter the code 0. If you sell the loan in a

succeeding year, you need not report the sale.

c. If you conditionally assign a loan to GNMA in

connection with a mortgage-backed security

transaction, use code 2.

d. Loans "swapped" for mortgage-backed securities

are to be treated as sales; enter the type of

entity receiving the loans that are swapped as

the purchaser.

e. Use code 8 for loans sold to an institution

affiliated with you, such as your subsidiary

or a subsidiary of your parent corporation.

Denial

Lenders are not required to enter the reasons for the denial of an application, but may indicate up to three reasons by using the following codes:

  1. Debt-to-income ratio
  2. Employment history
  3. Credit history
  4. Collateral
  5. Insufficient cash (downpayment, closing costs)
  6. Unverifiable information
  7. Credit application incomplete
  8. Mortgage insurance denied
  9. Other
2. Leave this column blank if the "action taken" on

the application is not a denial. For example, do

not complete this column if the application was

withdrawn or the file was closed for

incompleteness.

3. If your institution uses the model form for adverse

action contained in the appendix to Regulation B

(Form C-1 in Appendix C, Sample Notification Form,

which offers some 20 reasons for denial), the

following list shows which codes to enter.

a. Code 1 corresponds to: Income insufficient

for amount of credit requested, and Excessive

obligations in relation to income.

b. Code 2 corresponds to: Temporary or irregular

employment, and Length of employment.

c. Code 3 corresponds to: Insufficient number of

credit references provided; Unacceptable type

of credit references provided; No credit file;

Limited credit experience; Poor credit

performance with us; Delinquent past or

present credit obligations with others;

Garnishment, attachment, foreclosure,

repossession, collection action, or judgment;

and Bankruptcy.

d. Code 4 corresponds to: Value or type of

collateral not sufficient.

e. Code 6 corresponds to: Unable to verify

credit references, Unable to verify

employment, Unable to verify income, and

Unable to verify residence.

f. Code 7 corresponds to: Credit application

incomplete,

g. Code 9 corresponds to: Length of residence,

Temporary residence, and Other reasons

specified on notice.

 

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