CFPB: real estate loan activity moves from refinancing to purchase
The Consumer Financial Protection Bureau’s latest annual report on residential mortgage activity shows a shift from refinance lending in 2020 to home purchase lending in 2021, a greater share of home mortgage lending in home purchase going to white Asian, black and Hispanic borrowers versus the share of home purchase loans going to white non-Hispanic borrowers, the agency reported today.
Closed mortgages, excluding reverse mortgages, grew 2.4% from 13.4 million in 2020 to 13.7 million in 2021, according to the report. The CFPB had previously reported a 66.8% increase in originations between 2019 and 2020, largely due to refinancings. However, most of the increase from 2020 to 2021 was due to jumbo home purchase loans. The number of refinance loans fell 1.7% year-on-year.
Black borrowers’ share of home purchase loans fell from 7.3% in 2020 to 7.9% in 2021, according to the CFPB. White Hispanic borrowers saw their share of home purchase loans increase from 9.1% to 9.2%, and the share of Asian borrowers increased from 5.5% to 7.1%. The share of home purchase loans by non-Hispanic white borrowers increased from 59.1% to 55.6% over the same period. Overall, black and white Hispanic borrowers continued to enjoy lower median loan amounts, had lower median credit scores, and had higher denial rates than white and non-Hispanic Asian borrowers.