Loan Terms and Conditions Loan-to-Value Ratio (LTV) Rates Fixed Rate Adjustable Rate Conversion
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Loan Terms and Conditions Loan-to-Value Ratio (LTV) Rates Fixed Rate Adjustable Rate Conversion Term Full Term Loans (15, 30, etc.) Balloon Loans Amortization Full Amortization Interest Only Loans
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Loan Terms and Conditions Loan-to-Value Ratio (LTV) Rates Fixed Rate Adjustable Rate Conversion Term Full Term Loans (15, 30, etc.) Balloon Loans Amortization Full Amortization Interest Only Loans Reverse Equity Mortgages. Loan Terms and Conditions Loan-to-Value Ratio (LTV) Rates - PowerPoint PPT Presentation
Transcript of Loan Terms and Conditions Loan-to-Value Ratio (LTV) Rates Fixed Rate Adjustable Rate Conversion
Loan Terms and Conditions
Loan-to-Value Ratio (LTV)
RatesFixed RateAdjustable RateConversion
TermFull Term Loans (15, 30, etc.)Balloon Loans
AmortizationFull AmortizationInterest Only LoansReverse Equity Mortgages
• Loan Terms and Conditions
– Loan-to-Value Ratio (LTV)
– Rates• Fixed Rate• Adjustable Rate• Conversion
– Term• Full Term Loans (15, 30, etc.)• Balloon Loans
– Amortization• Full Amortization• Interest Only Loans• Reverse Equity Mortgages
Exploring HMDA Analysis for Enforcement Activities
HUD FHEO 2010 National Fair Housing Policy Conference
Calvin BradfordCalvin Bradford & Associates, Ltd.
The Home Mortgage Disclosure Act (HMDA):
• Provides public data on residential real estate loans by mortgage lenders
• HMDA Provides Data on – The Applicant and Co-Applicant The Lender The Loan Decision Characteristics of the Loan The Purpose and Type of Loan The Property The Lenders The Location of the Loan.
Summary of HMDA Uses in Enforcement • Can Be Used to Identify Lenders for Investigation or
Testing Comparing Individual Lenders to A Selected Market Defining Patterns that Would Be Consistent with (But Do Not
Prove) Discrimination To Identify Other Documents Related to Lending Patterns in the
HMDA Data Analysis
• Can Be Used to Investigate Individual Complaints To Assist in Identifying Similarly Situated Applicants and
Borrowers for Loan File Review To Assist in Defining the Aspects of Lending (Marketing,
Underwriting, Loan Channels, Etc.) Related to the Complaint To Identify Other Documents Related to Lending Patterns in the
HMDA Data Analysis
APPLICANT INFORMATION
Age
Credit Score (Range?)
New HMDA Fields
PROPERTY CHARACTERISTICS & DATA
The Value of the Property
A Property Parcel Number
LOAN CHARACTERISTICS
Total Fees and Points
More Detailed Benchmarks for Loan APRs
Prepayment Penalties
Term in Months of Introductory Rate Period
Indication of Terms Not Providing for Amortization During Any Period of the Loan
The Term in Months of the Loan
New HMDA Fields
LOAN AND LENDER DATA
New HMDA Fields
A Universal Loan Identifier
A Unique Loan Originator Identifier
Designation of the Loan Channel (Retail, Broker, Etc.)
Loans by Race Percent of Average Percent of Percentor Ethnicity Loans Rate Loans with of
Above Spread Rate Spread LoansThreshold Greater than FHA
150% of Average
Market 25 3.9 6 8Whites 75% 23 3.8 5 7
Minorities 25% 37 4.1 12 15
Sample Lender #2 28 3.5 6 20Whites 50% 30 3.0 4 10
Minorities 50% 25 4.0 10 30
Sample Lender #2
Loans by Race Percent of Average Percent of Percentor Ethnicity Loans Rate Loans with of
Above Spread Rate Spread LoansThreshold Greater than FHA
150% of Average
Low Income 40 4.5 11 30Whites 25% 25 3.0 10 15
Minorities 75% 45 5.0 12 35
High Income 25 3.5 6 20Whites 75% 10 2.0 4 5
Minorities 25% 30 4.0 10 25
Sample Lender #2 - By Low to High Income
Withdrawn (10.00%)Closed/Inc. (2.00%)
Originated (55.00%)Denied (29.00%)
Approve/Not Accept (4.00%)
Sample MSA HMDA Data
Black Home Loan Application Decisions
Approve/Not Accept (2.00%)
Denied (13.00%)
Withdrawn (8.00%)Closed/Inc. (1.00%)
Originated (76.00%)
Sample MSA HMDA Data
White Home Loan Application Decisions
Approve/Not Accept (1.00%)
Denied (9.00%)
Withdrawn (8.00%)Closed/Inc. (1.00%)
Originated (81.00%)
Sample Lender HMDA Data
White Home Loan Application Decisions
Originated (42.00%)
Withdrawn (18.00%)
Closed/Inc. (4.00%)
Approve/Not Accept (8.00%)
Denied (28.00%)
Sample Lender HMDA Data
Black Home Loan Application Decisions
0
20
40
60
80 Pe
rcen
t of L
oans
Tha
t Are
FH
A
Very Low Low Moderate Middle Upper HighIncome Levels of Census Tract Groups
>75% Hispanic 50% to 75% Hispanic>75% White
Graph 2 - Hispanic v. WhiteBy Ethnicity & Income of Census Tracts
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C ook C ounty
D uP age C ounty
Loans
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!! 1 D ot = 1Loan
Black/Hisp Pop
0 to 50%
50 to 75%
75 to 100%
Racial Change
N o
Y es
Chicago Area Sam ple Lender Tract Data for Conventional Hom e Purchase Loans1994 HM DA Conventional Data & 1990 Population Data for Race/Ethnicity
Racial Change = If (%Blck & Hisp Loans - %Blck & Hisp Population in 1990) >25%
1,042 Loans
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C ook C ounty
D uP age C ounty
p
LakeMichigan
LakeCalum et
Loans
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Black/Hisp Pop
0 to 5 0%
R acia l C hange
5 0 to 1 00%
Sam ple Lender Conventional Loans to A frican-Am ericans31 Conventional Home Purchase Loans
31 Loans
The S am ple Lender m ade 263 conventional and FH A loans toA frican-A m ericans. O f these loans, 88% were FH A , leaving31 conventional loans. O nly 15 o f these 31 loans were inwh ite com m unities .
