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
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
- Office of the Comptroller of the Currency
- Federal Reserve Board
- Federal Deposit Insurance Corporation
- Office of Thrift and Supervision
- National Credit Union Association
- There is no 6
- 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
- Conventional (any loan other than FHA, VA or FmHA loans)
- FHA-insured (Federal Housing Administration)
- VA-guaranteed (Veterans Administration)
- FmHA-insured (Farmers Home Administration)
Loan Purpose
- Home purchase (one-to-four family)
- Home improvement (one-to-four family)
- Refinancing (home purchase or home improvement, one-to-four family)
- Multifamily dwelling (home purchase, home improvement, and refinancings)
Explanation of loan purpose codes.
Code 1: Home purchase.
- 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.
- 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.
- 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.
- Report both secured and unsecured loans.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
- Owner-occupied as a principal dwelling
- Not owner-occupied
- 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
- Loan originated (application approved and loan accepted by applicant) - Prof. G.
- Application approved but not accepted by applicant
- Application denied
- Application withdrawn
- File closed for incompleteness
- 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.
- American Indian or Alaskan Native
- Asian or Pacific Islander
- Black
- Hispanic
- White
- Other
- Information not provided by applicant in mail or telephone application
- 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.
- Male
- Female
- Information not provided by applicant in mail or telephone application
- 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
- FNMA (Federal National Mortgage Association)
- GNMA (Government National Mortgage Association)
- FHLMC (Federal Home Loan Mortgage Corporation)
- FmHA (Farmers Home Administration)
- Commercial bank
- Savings bank or savings association
- Life insurance company
- Affiliate institution
- 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:
- Debt-to-income ratio
- Employment history
- Credit history
- Collateral
- Insufficient cash (downpayment, closing costs)
- Unverifiable information
- Credit application incomplete
- Mortgage insurance denied
- 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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