November 30, 2022

Volume XII, Number 334

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2021 CFPB Annual Report Shows Increase in Home Purchase Loans, Decrease in Refinancing

On September 22, the CFPB released its annual report providing an overview of the residential mortgage trends and activity in 2021 based on data collected from thousands of U.S. lending institutions under the Home Mortgage Disclosure Act (HMDA). Some of the key findings in the report include:

  • Increases in originations driven by home purchase loans: Close-end mortgage originations increased by 2.4%, from 13.4 million in 2020 to 13.7 million in 2021. The report also noted that while the 66.8% in originations from 2019 to 2020 were largely due to refinances, the increase from 2020 to 2021 was due to large home purchase loans.

  • Decreases in HMDA reporting: The number of financial institutions reporting data on close-end mortgage loans dropped by 3.1%.

  • Increase in combined market share by top 25 closed-end lenders: the top 25 closed-end lenders by loan volume increased their combined market share to 43.9%, and accounted for 53% of all refinance loans.

  • Increases in home purchase loans across minority groups: The report also noted slight upticks certain minority borrower groups in their shares of home purchase loans from 2020 to 2021—5.5% to 7.1 % (Asian), 7.3% to 7.9% (Black), and 9.1% to 9.2% (Hispanic).

Putting It Into Practice: Data collected under HMDA provides regulators, such as the CFPB, insight as to whether financial institutions are serving the housing needs of local communities and can help identify possible discriminatory lending patterns. The CFPB has historically used such data and findings to inform its enforcement activities.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XII, Number 266
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About this Author

Moorari Shah Bankruptcy Lawyer Sheppard Mullin Law Firm
Partner

Moorari Shah is a partner in the Finance and Bankruptcy Practice Group in the firm's Los Angeles and San Francisco offices. 

Areas of Practice

Moorari combines deep in-house and law firm experience to deliver practical, business-minded legal advice. He represents banks, fintechs, mortgage companies, auto lenders, and other nonbank institutions in transactional, licensing, regulatory compliance, and government enforcement matters covering mergers and acquisitions, consumer and commercial lending, equipment finance and leasing, and supervisory examinations,...

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A.J. S. Dhaliwal Bankruptcy Attorney Sheppard Mullin Washington DC
Associate

A.J. is an associate in the Finance and Bankruptcy Practice Group in the firm's Washington, D.C. office. 

A.J. has over a decade of experience helping banks, non-bank financial institutions, and other companies providing financial products and services in a wide range of matters including government enforcement actions, civil litigation, regulatory examinations, and internal investigations.

With a diversified regulatory, compliance, and enforcement background, A.J. counsels financial institutions in matters involving...

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Pouneh Almasi is an associate in the Intellectual Property Practice Group in the firm's San Francisco office.  

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Pouneh’s practice focuses on intellectual property litigation with an emphasis on copyright and trademark issues.  She is also a member of the firm’s Blockchain Technology & Digital Currency Team.

During law school, Pouneh worked as a judicial extern to the Honorable Jacqueline Scott Corley at the Northern District of California in San Francisco...

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