Manufactured Housing Finance: New Insights from the Home Mortgage Disclosure Act Data

This paper presents a new approach to measuring affordable homeownership. Future changes in the homeownership rate will depend on the ability of today’s renters to become homeowners. Our proposed housing affordability for renters index (HARI) focuses on how affordable homeownership is for current renters. We look at the share of renters who reported the same or more income than those who recently purchased a home using a mortgage, in effect measuring how many renters have enough income to purchase a house. For each metropolitan statistical area (MSA), we construct a local area index that compares renters and borrowers in the same MSA and a national index that compares renters nationwide with homeowners in a specific MSA. We rely on the Administrative Data Research Facility to construct these indices. This database, constructed by the Urban Institute, aggregates American Community Survey variables and Home Mortgage Disclosure Act variables to common geographies. The new indices reveal that slightly more than a quarter of current US renters have incomes higher than those who recently became homeowners using a mortgage. The indices also reveal how housing affordability differs over time and across race/ethnicity groups and locations. We demonstrate the value of our new indices by showing that they are predictive of homeownership rates: MSAs that are deemed more affordable by our index have higher homeownership rates.

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Economic Factors Affecting Home Mortgage Disclosure Act Reporting

SSRN Electronic Journal ◽

10.2139/ssrn.992815 ◽

2007 ◽

Cited By ~ 2

Author(s):

Michael LaCour-Little

Keyword(s):

Economic Factors ◽

Factors Affecting ◽

Home Mortgage Disclosure Act ◽

Home Mortgage

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The Home Mortgage Disclosure Act And Subprime Lending

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v26i5.322 ◽

2010 ◽

Vol 26 (5) ◽

Author(s):

Rakesh K. Gupta ◽

Hari Sharma ◽

Cheryl E. Mitchem

Keyword(s):

Mortgage Lending ◽

Predatory Lending ◽

Subprime Lending ◽

Fixed Rate ◽

Mortgage Industry ◽

Reporting Requirements ◽

Home Mortgage Disclosure Act ◽

Adjustable Rate Mortgage ◽

Home Mortgage ◽

The Impact

This research paper focuses on the analysis of subprime lending activities in specific geographic area in the light of reporting requirements of the Home Mortgage Disclosure Act (HMDA). This cross sectional study has focused on the detailed analysis of mortgage data for the selected Metropolitan Statistical Areas (MSA) from a socio-economic perspective. The objective of this research is to assess the impact of predatory lending in selected geographic regions. Another dimension of the research focuses on the role of mortgage lending from a securitization point of view. The study reveals that private securitization (PSEC) mortgages grew dramatically not only by the number of loans but also significantly by the dollar amount due to subprime lending activities during the period of study. The growth in PSEC loans affected mortgage lending in several ways, such as, increasing subprime lending, boosting home prices, and undermining mortgage industry regulations. Additionally, Government-Sponsored Enterprises (GSEs) loan originations also increased the number of subprime loans because of relaxed reporting requirements which contributed to increased delinquencies and foreclosures for conforming loans. The study further reveals that HMDA reporting requirements allowed the mortgage industry to conceal the loans that had spreads above the prime rate of up to 3.5 points for Fixed Rate Mortgage or 5 points for Adjustable Rate Mortgage (ARM). The study of mortgage lending programs, products, and regulatory laws have also been examined to assess the impact of predatory lending on homeownership.

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