The Federal Financial Institutions Examination Council today launched the 2021 Home Mortgage Disclosure Act information on home mortgage loaning deals at 4,338 banks. The information incorporates 23.3 million home mortgage applications. Of these, 21.1 million were closed-end loans and 1.8 million were open-end loans such as house equity credit lines. There were likewise 350,000 records that did not suggest loan type.
The overall variety of come from closed-end loans increased by about 528,000 in between 2020 and 2021. Refinance originations reduced by 1.4% from 8.5 million, and house purchase loaning increased by 9.2% from 4.8 million. The share of home loans come from by nonbanks continues to climb up, representing 63.9% of home-purchase loans, up from 60.7% in 2020.
Closed-end, first-lien loans to Black debtors increased from 7.3% in 2020 to 7.9% in 2021. Loans to Hispanic-White debtors increased somewhat from 9.1% to 9.2%, and those made to Asian debtors increased from 5.5% to 7.1%. Denial rates have actually edged down somewhat. In 2021, Black and Hispanic-White candidates experienced rejection rates of 15.7% and 9.8%, respectively, compared to 17.2% and 11.2% in 2020. Denial rates for Asian and non-Hispanic-White candidates were 7.5% and 5.6%, respectively, compared to 9.1% and 6.1% in 2020.
The Federal Housing Administration-guaranteed share of loans reduced somewhat from 19.4% in 2020 to 17.2% in 2021. The total government-backed share of loans, consisting of FHA, VA, Rural Housing Service and Farm Service Agency loans, was 29.3% in 2021, below 32.8% in 2020.The FHA-insured share of closed-end re-finance home loans increased to 6.9% in 2021 from 6.2% in 2020, while the VA-guaranteed share of such re-finance loans reduced from 11.9% in 2020 to 10.2% in 2021.