The Qualified Mortgage (QM) Rule went into effect January 10, 2014, and appears to have impacted lending practices by parsing out some potential applicants who had reduced chances of approval under QM before they even submitted an application. This could explain that while all purchase applications were reduced in volume, the origination rates were higher. The origination rate for White borrowers was 86 percent in 2014, compared to 84 percent the previous year.
In a comment letter to the Office of the Comptroller of the Currency (OCC), Woodstock Institute encouraged the regulatory agency to approve the merger, with the condition that U.S. Bank make commitments to address public needs.
The report, Paying More for the American Dream V: The Persistence and Evolution of the Dual Mortgage Market, examines changes in conventional refinance lending between 2008 and 2009 in seven metropolitan areas: Boston, Charlotte, Chicago, Cleveland, Los Angeles, New York City and Rochester, NY. It also compares 2009 loan denial rates across neighborhoods.
HMDA is a crucial tool in the fight against discriminatory and predatory lending.
The Home Mortgage and Disclosure Act (HMDA) requires mortgage lenders to provide detailed reports of their lending activities to regulators and the public. HMDA data have long served as a powerful mechanism that identifies unfair lending practices, such as discriminating against minority families, women, and low-income borrowers. HMDA is 35 years old, however, and Congress recognized it was time for a tune-up.
Regulators are holding a series of public hearings, including one in Chicago on September 16, on possible revisions to HMDA. HMDA data collection must be more comprehensive in order for regulators and the public to prove abusive discriminatory lending practices and hold lenders accountable.
Why update HMDA? Why now?