A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 5683 | 5852 | 6762 | Consumer Financial Protection Bureau | A.1.1 |
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 34.16% of total | 36.32% of total | 38.48% of total | Consumer Financial Protection Bureau | A.1.2.1 |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | 9.37% of total | 9.66% of total | 8.64% of total | Consumer Financial Protection Bureau | A.1.2.2 |
| Non-depository financial institutions specialized in housing finance | 56.46% of total | 54.02% of total | 52.88% of total | Consumer Financial Protection Bureau | A.1.2.3 |
| General non-depository financial institutions | Not available | A.1.2.4 | |||
| Others (e.g. insurance co, pension funds, labor tax funds) | Not available | A.1.2.5 | |||
| Identify the 3 largest loan originating lenders | Quicken Loans, Wells Fargo, United Shore Financial Services | Wells Fargo, JPMorgan Chase, Quicken Loans | Wellls Fargo, JP Morgan, Quicken Loans | Consumer Financial Protection Bureau | A.1.3 |
| Are there (quasi) public mortgage lenders: | No | Country Editor | A.1.4 | ||
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| as a % of # of loans | 1.8% | Office of the Comptroller of the Currency | A.1.6.1 | ||
| as a % of outstanding loan amount | 9.47% | Mortgage Bankers Association | A.1.6.2 | ||
| Average 1997-2007 | A.1.7 | ||||
| Lowest decile of the income distribution served by the dominant mortgage lenders | 1 decile | Federal Reserve Bank of New York | A.1.8 | ||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 12,342,403 USD (millions) | 11,941,011 USD (millions) | 11,513,497 USD (millions) | Federal Reserve | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 59.97% | 61.18% | 61.52% | Federal Reserve | A.2.1.1 |
| and as % of all credits outstanding | 45.61% | 46.1% | 46.91% | Federal Reserve | A.2.1.2 |
| Total # of home mortgage loans outstanding at the end of year | 18,691,550 thousand | Board of Governors of the Federal Reserve System | A.2.2 | ||
| Total amount of home mortgages made in calendar year in millions of USD | 1,822,126.09 USD (millions) | 1,926,929.76 USD (millions) | 2,181,436.43 USD (millions) | Consumer Financial Protection Bureau | A.2.3 |
| and as % of GDP (current) | 8.85% | 9.87% | 11.66% | Consumer Financial Protection Bureau | A.2.3.1 |
| and as % of all credits originated in calender year | Not available | 10.78% | 12.97% | Federal Reserve | A.2.3.2 |
| Total # of home mortgage originations made in calendar year | 6,437.13 thousand | 7,361.13 thousand | 8,381.49 thousand | Consumer Financial Protection Bureau | A.2.4 |
| What % of total new mortgages is refinance? | 30.39% | 34.46% | 45.06% | Consumer Financial Protection Bureau | A.2.5 |
A.3 Housing Finance Products
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | 85.77% | Federal Housing Finance Agency | A.3.1.1 | ||
| Variable rate/indexed | 14.23% | Federal Housing Finance Agency | A.3.1.2 | ||
| Loans based on foreign currency as % of all mortgage products | 0% | Country Editor | A.3.2 | ||
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| 10 year fixed rate mortgage | Not available | 3.5% | 3% | Zillow | A.3.4.1 |
| most common indexed ARM/10 year term | 4.88% | 4.06% | 3.5% | JP Morgan Chase | A.3.4.2 |
| discretionary ARM/10 year term | 3.82% | 3.2% | 2.88% | Freddie Mac | A.3.4.3 |
| Most frequent rate on interest only 10 yr FRM | 3.1% | Freddie Mac Weekly Primary Mortgage Market Survey | A.3.5 | ||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Fixed in amount | 951 USD | BankRate | A.3.6.1 | ||
| as % of loan amount | 1% | 1% | 1% | Investopedia | A.3.6.2 |
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Appraisal fees | 459 USD | 459 USD | 459 USD | ValuePenguin | A.3.7.1 |
| Title related fees | 1,322 USD | 1,322 USD | 1,322 USD | ValuePenguin | A.3.7.2 |
| Legal fees | Not available | A.3.7.3 | |||
| Search fees | Not available | Board of Governors of the Federal Reserve System | A.3.7.4 | ||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | Non-applicable | Non-applicable | Non-applicable | A.3.8.1 | |
| Typical LTV at origination | 70.00 | 70 | 70 | Urban Institute | A.3.8.2 |
| Maximum term over which pmt is calculated? | 50 years | 50 years | 50 years | A.3.9 | |
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (Individual income) | 31% | VA, FHA | A.3.10.2 | ||
| Typical pmt-to-income ratio (HH income) | Not available | Country Editor | A.3.10.3 | ||
| Typical pmt-to-income ratio (Individual income) | 25% | Ellie Mae | A.3.10.4 | ||
A.4 Lending and Servicing Process
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | Research | A.4.1 |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Central Bank/Ministry of Finance | No | No | No | Research | A.4.2.1 |
| Secondary market facility | Yes | Yes | Yes | Fannie Mae | A.4.2.2 |
| Major Lender | No | No | No | Research | A.4.2.3 |
| Other | Yes | Yes | Yes | Consumer Financial Protection Bureau | A.4.2.4 |
| Are loan originations conducted by others than employees of lenders? | Yes | Yes | Yes | Research | A.4.3 |
| Do third party servicing institutions exist? | Yes | Country Editor | A.4.5 | ||
| % of loans serviced by originators/lenders | 20% | Country Editor | A.4.6 | ||
A.5 Credit Risk Assessment
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | FannieMae | A.5.2 |
| Are there legal/regulatory constraints to gaining access to credit information? | Yes | Yes | Yes | Consumer Financial Protection Bureau | A.5.2.1 |
| What percentage of mortgage originations use credit scoring? | 100% | 100% | 100% | Fannie Mae | A.5.1 |
| Is mortgage default insurance available? | Yes | Yes | Yes | Federal Reserve Bank | A.5.3 |
| When did it begin operating? | 1957 | 1957 | 1957 | Federal Housing Finance Agency | A.5.3.1 |
| What is the typical MI product? | Private MI typically covers the top 20 to 30 percent of the loan balance plus interest owed and foreclosure-related costs. The MI premium rate varies by mortgage type (fixed vs. adjustable rate), loan-to-value ratio, loan purpose (purchase vs. refinance), borrower credit score, and owner -occupied vs. rental property. MI typically is used where the down payment is less than 20%. Eligible properties are 1-4 family housing. Government MI (FHA) covers 100% of the loan and is subject to insurable loan limits. | Private MI typically covers the top 20 to 30 percent of the loan balance plus interest owed and foreclosure-related costs. The MI premium rate varies by mortgage type (fixed vs. adjustable rate), loan-to-value ratio, loan purpose (purchase vs. refinance), borrower credit score, and owner -occupied vs. rental property. MI typically is used where the down payment is less than 20%. Eligible properties are 1-4 family housing. Government MI (FHA) covers 100% of the loan and is subject to insurable loan limits. | Private MI typically covers the top 20 to 30 percent of the loan balance plus interest owed and foreclosure-related costs. The MI premium rate varies by mortgage type (fixed vs. adjustable rate), loan-to-value ratio, loan purpose (purchase vs. refinance), borrower credit score, and owner -occupied vs. rental property. MI typically is used where the down payment is less than 20%. Eligible properties are 1-4 family housing. Government MI (FHA) covers 100% of the loan and is subject to insurable loan limits. | Consumer Financial Protection Bureau | A.5.3.2 |
| Number of private mortgage insurers | 6 | 7 | 5 | Federal Housing Finance Agency | A.5.3.3 |
| Are credit guarantee systems used? | Yes | Country Editor | A.5.4 | ||
| Is there public sponsored MI / guarantee? | Yes | Yes | Yes | HUD | A.5.5 |
| What % of the market does public MI / guarantee serve? | 57% | 62% | 63% | Urban Institute | A.5.6 |
| What share of total annual mortgage production is insured/guaranteed? | 25.07% | A.5.7 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | secondary | secondary | secondary | Deloitte | B.1.1 |
| Wholesale funding: loans from other banks or corporations | tertiary | tertiary | tertiary | Deloitte | B.1.2 |
| Funding through mortgage bonds | Non-applicable | Not available | Non-applicable | Research | B.1.3 |
| Funding through securitization of mortgages | primary | primary | primary | Deloitte | B.1.4 |
| What % of Residential Mortgage Backed Securities is issued by centralized conduit or liquidity facility? | 88.04% | 91.76% | 94.8% | Sifma | B.2 |
| Who are the investors in RMBS? | Market investors, institutional investors, depository institutions, GSEs, Federal Reserve | Market investors, institutional investors, depository institutions, GSEs, Federal Reserve | Market investors, institutional investors, depository institutions, GSEs, Federal Reserve | Federal Reserve | B.3 |
| What is the proportion of RMBS in the overall private securities market? | 9.39% | Board of Governors of the Federal Reserve System | B.4 | ||
C. Housing Microfinance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||