The GSEs provide detailed data on their mortgage purchases to HUD on an annual basis. As part of their annual HMDA reporting responsibilities, lenders are required to indicate whether their new mortgage originations or the loans that they purchase (from affiliates and other institutions) are sold to Fannie Mae, Freddie Mac or some other entity.
There have been numerous studies by HUD staff and other researchers that use HMDA data to compare the borrower and neighborhood characteristics of loans sold to the GSEs with the characteristics of all loans originated in the market.
In 2001 and 2002, for example, purchases of prior-year mortgages accounted for approximately 20 percent of 249 For another discussion of this issue, see Randall M.
Scheessele, HMDA Coverage of the Mortgage Market, Housing Finance Working Paper HF-007, Office of Policy online loans for bad credit in Ohio Development and Research, Department of Housing and Urban Development, July 1998. The main reason for the under-reporting of GSE acquisitions is a few large lenders failed to report the sale of a significant portion of their loan originations to the GSEs.
Also see the analysis of HMDA coverage by Jim Berkovec and Peter Zorn. Manchester, Goal Performance and Characteristics of Mortgages Purchased by Fannie Mae and Freddie Mac, 1998-2000, Housing Finance Working Paper No. HF-015, Office of Policy Development and Research, HUD, May 2001. The implications of this-for measuring GSE performance can be seen in Table A.
All mortgages are conventional conforming home online loans for bad credit in Ohio purchase mortgages.
In both the GSE and market analyses, Mortgages classified as special affordable include mortgages from very-low-income borrowers and low-income borrowers living in low-income census tracts. Because missing value percentages differ between GSE and HMDA data, mortgages with missing data are excluded from both the GSE and market data. What explains these different patterns in the GSE and HMDA data? And the HMDA figure and the GSE current-year figure are practically the same in this case (15. This downward bias for HMDA data, is the opposite of that suggested by Berkovec and Zorn, who argued that affordability percentages from HMDA data are biased upward. The more recent and complete (Fannie Mae data as well as Freddie Mac data) analysis does not support the Berkovec and Zorn finding that HMDA overstates the goals-qualifying percentages of the market.
That is, all mortgages (including both current-year mortgages and prior-year mortgages) purchased by a GSE ina particular year are assigned to the year of GSE purchase. As noted in the text, the differential is typically in the opposite direction to that predicted by Berkovec and Zorn, particularly on the underserved areas category. The ratios of HMDA-reported-to-GSE-reported averages for this sub-period are similar to those reported for 1996- 2002. In this case, all purchases by a GSE in any particular year would be fully reported but they would be allocated to the year that they were originated, rather than to the year they were purchased. This approach places the GSE and the market data on a consistent, current-year online loans for bad credit in Ohio basis. In the above example, the market data would present the income and underserved area characteristics of mortgages originated in 2000, and the GSE data would present the same characteristics of all year-2000- mortgages that the GSE has purchased to date (i. This allows the reader to compare any differences in findings about how well the GSEs have been doing relative to the market. The analysis in this section begins by presenting the GSE data on a purchase-year basis. As discussed above, the GSE data that are reported to HUD include their purchases of mortgages originated in prior years as well as their purchases of mortgages originated during the current year. The market data reported by HMDA include only mortgages originated in the current year. This means that the GSE- versus-market comparisons are defined somewhat inconsistently for any particular calendar year.
Each year, the GSEs have newly-originated loans available for purchase, but they can also purchase loans from a large stock of seasoned (prior-year) loans currently being held in the portfolios of depository lenders.
One method for making the purchase-year data more consistent is to aggregate the data over several years, online loans for bad credit in Ohio instead of focusing on annual data. This provides a clearer picture of the types of loans that have been originated and are available for purchase by the GSEs.
Longer-Term Performance, 1993—2002 and 1996-2002 Table A.
Given the importance of the GSEs for expanding homeownership, this section focuses on home purchase mortgages, and the next section will examine first-time homebuyer loans.
Several points stand out concerning the affordable lending performance of Freddie Mac and Fannie Mae over the two longer-term periods, 1993-2002 and 1996-2002. Note that during the recent, 1999-to-2002 period (also reported in Table A. For online loans for bad credit in Ohio online loans for bad credit in Ohio example, the average special affordable (underserved area) market percentage for 1996-2002 would fall by about 0.