The Federal Financial Institutions Examination Council today released the 2022 Mortgage Disclosure Act data on mortgage lending transactions at 4,338 banking institutions. The data encompasses 23.3 million mortgage applications. Of those, 21.A million were closed-end loans and 1.8 million were open-end loans such as home equity credit lines. There were also 350,000 records that didn't indicate type of loan.
The total number of originated closed-end loans increased by about 528,000 between 2022 and 2022. Refinance originations decreased by 1.4% from 8.5 million, and home purchase lending increased by 9.2% from 4.8 million. The proportion of mortgages originated by nonbanks is constantly on the climb, comprising 63.9% of home-purchase loans, up from 60.7% in 2022.
Closed-end, first-lien loans to Black borrowers rose from 7.3% in 2022 to 7.9% in 2022. Loans to Hispanic-White borrowers increased slightly from 9.1% to 9.2%, and those designed to Asian borrowers increased from 5.5% to 7.1%. Denial rates have edged down slightly. In 2022, Black and Hispanic-White applicants experienced denial rates of 15.7% and 9.8%, respectively, compared to 17.2% and 11.2% in 2022. Denial rates for Asian and non-Hispanic-White applicants were 7.5% and 5.6%, respectively, in contrast to 9.1% and 6.1% in 2022.
The Federal Housing Administration-insured share of loans decreased slightly from 19.4% in 2022 to 17.2% in 2022. The general government-backed share of loans, including FHA, VA, Rural Housing Service and Farm Service Agency loans, was 29.3% in 2022, down from 32.8% in 2022.The FHA-insured share of closed-end refinance mortgages increased to 6.9% in 2022 from 6.2% in 2022, while the VA-guaranteed share of these refinance loans decreased from 11.9% in 2022 to 10.2% in 2022.