Understanding the 2025 Home Mortgage Disclosure Act data
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What high‑level trends does the 2025 HMDA data reveal?
maybe the wealthiest Americans on the older cohort that are home swapping in the older generations while that younger generation which was getting their first foot on the housing ladder are really only forced into different sort of the starter homes when they're going ahead and getting their home purchase. But that was some a relatively interesting phenomenon that we saw is that that gap between younger and older Americans seems to be getting wider as time goes on.
From the American Bankers Association, this is the ABA Banking Journal Podcast. Welcome back. I'm Evan Sparks.
Today's episode is presented by Q2 Software.
I'm delighted to be here today with my colleague Dan Brown, a frequent flyer here on the podcast. Dan is a senior director and economist in ABA's Office of the Chief Economist. Dan, welcome to the show. Thank you again for having me, Evan. All right. So I want to talk with you today about the fair relatively recent release of Humda data for the previous year and some of the trends that the econ team here at ABA is seeing in the data and how that's gonna affect bank participation in the mortgage market going forward.
How has bank market share changed compared to non‑bank mortgage lenders?
Can you give us an overview of the high level trends you saw in the Humda data and then we can drill down into some specific questions?
Absolutely. So the Humda data, every time that there's a application done in terms of a mortgage apply, there's a lot of different data points that need to go ahead and be filed to the government. And one of the things about the Humda data set is it really does give us a bird's eye view about what's going on in this financial landscape. So we're able to see directly how banks are competing with their non-bank competitors. And so within that, within the most recent data with it with twenty twenty five, is that banks made up about fifty-one percent of the filers within the data set, but they only originated twenty nine percent. of the loans within Humda data. And there's a lot of reasons for that that we could kind of go through.
And I'd probably ballpark it and say that market share has basically been cut a little bit more than half over the last fifteen or twenty years or so. And definitely the higher capital requirements following the great financial crisis is a big contributor. Also, the number of data points that are required in Humda has gone up significantly. And that really last happened in 2018. And the ABA actually is doing some initiatives to try to reduce those amounts of data points to try to make it less burdensome for especially smaller banks to file that data on an annual basis. But the other thing you have to remember too is that competition is a little bit more nuanced too. And I'll give you an example in regards to mortgage companies, is that
They don't take deposits. They don't have access to liquidity facilities. So a lot of times those mortgage companies are actually getting their financing from banks. And so trying to figure out what the banking industry's total contributions to the housing market can be a little bit difficult to unfurl. Another great example of that too is that banks end up making loans to home builders and Zet home builder will go ahead and build the home, but then they also might have their own. in-house mortgage company where they're going ahead and lending to that home buyer. And so ultimately you peel it back and realize that that would not have been possible without the loans that banks are making to the home builders in those situations.
Which U.S. regions show the strongest bank mortgage market share?
So trying to figure out high in the sky what the total dollar amount of the bank's contributions to the housing market. can be relatively difficult. But I think maybe a big takeaway for our audience here is that banks are making a myriad of contributions through a variety of ways, whether it be the direct originations or it'll be facilitating to home builders, to mortgage companies, there's all these different ways that banks are making contributions to the housing market.
Are there certain areas of the country where banks' market share is stronger than others?
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Chapters
8 chapters
1
What high‑level trends does the 2025 HMDA data reveal?
0:02–1:06
2
How has bank market share changed compared to non‑bank mortgage lenders?
1:06–3:01
3
Which U.S. regions show the strongest bank mortgage market share?
3:01–5:53
4
Where are non‑bank mortgage originations most active on the coasts?
5:53–9:00
5
What does the 2025 data say about the recent rebound in refinance activity?
9:00–11:12
6
How are rising mortgage rates affecting different age cohorts of homebuyers?
11:12–13:08
7
Why is the home‑buying gap widening between younger and older Americans?
13:08–13:37
8
Where can listeners access the full HMDA analysis and related ABA research?
13:37–13:49