A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2022 | End of 2021 | End of 2020 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 4338 | 4475 | Consumer Financial Protection Bureau | A.1.1 | |
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 26.34% of total | 27.9% of total | Consumer Financial Protection Bureau | A.1.2.1 | |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | 7.45% of total | 7.94% of total | Consumer Financial Protection Bureau | A.1.2.2 | |
| Non-depository financial institutions specialized in housing finance | 66.2% of total | 64.16% 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, United Shore Financial Services, Wells Fargo | 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 | .5% | .52% | .69% | 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 2022 | End of 2021 | End of 2020 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 19,355,100 USD (millions) | 18,068,800 USD (millions) | 16,788,300 USD (millions) | Federal Reserve | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 76.01% | 77.5% | 79.71% | Federal Reserve | A.2.1.1 |
| and as % of all credits outstanding | 56.23% | 56.09% | 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 | 2,494,042.99 USD (millions) | Consumer Financial Protection Bureau | A.2.3 | ||
| and as % of GDP (current) | 11.66% | Consumer Financial Protection Bureau | A.2.3.1 | ||
| Total # of home mortgage originations made in calendar year | 8,110.75 thousand | Consumer Financial Protection Bureau | A.2.4 | ||
| What % of total new mortgages is refinance? | 42.5% | Consumer Financial Protection Bureau | A.2.5 |
A.3 Housing Finance Products
| Variable | End of 2022 | End of 2021 | End of 2020 | 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 | A.3.4.1 | |||
| most common indexed ARM/10 year term | 4.88% | JP Morgan Chase | A.3.4.2 | ||
| discretionary ARM/10 year term | 4.09% | 2.61% | 3.08% | Freddie Mac | A.3.4.3 |
| Most frequent rate on interest only 10 yr FRM | 3.68% | 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 | 65 | 70 | 70 | Urban Institute | A.3.8.2 |
| Maximum term over which pmt is calculated? | 30 years | 30 years | 30 years | CFPB | A.3.9 |
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (HH income) | 43% | 43% | 43% | CFPB | A.3.10.1 |
| Maximum pmt-to-income ratio (Individual income) | 31% | HUD, Wells Fargo | 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) | 24% | Ellie Mae | A.3.10.4 | ||
A.4 Lending and Servicing Process
| Variable | End of 2022 | End of 2021 | End of 2020 | 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 |
| % of loans serviced by originators/lenders | 20% | Country Editor | A.4.6 | ||
A.5 Credit Risk Assessment
| Variable | End of 2022 | End of 2021 | End of 2020 | 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 | 1945 | 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 | 6 | 6 | 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? | 51% | 52% | 52% | 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 2022 | End of 2021 | End of 2020 | 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 | Non-applicable | 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% | 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 2022 | End of 2021 | End of 2020 | 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 | ||||