Pct. of conv. first-lien owner purch. loans with high interest
High interest rate loans, one way of identifying subprime loans, have Annual Percentage Rates exceeding the comparafle Treasury yield by 3 percentage points or more for first-liens. Conventional refers to a loan not insured by a government program, like FHA or VA.
Percent of conventional, first-lien home purchase mortgage originations for owner-occupied 1 to 4 family dwellings and manufactured homes with high interest rates
Home Mortgage Disclosure Act (Federal Financial Institutions Examination Council)
The Home Mortgage Disclosure Act (HMDA) requires most lending institutions to report mortgage loan applications, including the outcome of the application, information about the loan and applicant, and location of the property. In 2004 and later years, data is also available about loans with high interest rates, lien status, and property structure type. The data are collected to assist in determining whether financial institutions are meeting the housing credit needs of their communities; to target community development funds to attract private investment to underserved areas; and to identify possible discriminatory lending patterns. In DataPlace, the loan-level data are summarized into indicators such as the distribution of borrowers by income, denial rates by gender, and loans from subprime lenders by race. For more information about HMDA, see the DataPlace guidebook at http://www.dataplace.org/guides.html or visit the FFIEC web site at http://www.ffiec.gov/hmda.
Federal Financial Institutions Examination Council