Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act

Federal Reserve Bulletin, Feb, 1999 by Robert B. Avery, Raphael W. Bostic, Paul S. Calem, Glenn B. Canner, Kelly A. Bryant, John E. Matson

NOTE. Includes only owner-occupied one- to four-family home purchase loans extended for properties in metropolitan statistical areas (MSAs). The counties included are those that were MSAs throughout the period. Thus, loan counts will differ from figures published by the Federal Financial Institutions Examination Council (FFIEC). Totals fro the four borrower and neighborhood categories differ because information regarding borrower race or ethnic status and income or property location was not reported for all loans.

(1.) Loans to black, Asian, Hispanic, Native American and "other race" borrowers are classified as minority loans.

(2.) MSA median family income is estimated for each year by the Department of Housing and Urban Development.

(3.) Median family income and racial composition are derived from the 1990 Census of Population and Housing.

2 Change in home purchase lending, by characteristic of borrower and neighborhood, 1993 97

Percent

                         1993    1994    1995   1996    Memo
   Borrower or census     to      to      to     to    1993-97
  tract characteristic   1994    1995    1996   1997

        BORROWER
Racial or ethnic
group(1)
Minority                 27.3     2.5    12.2    4.8    53.4
Nonminority               4.6    -5.6    14.4     .1    13.2
  Total                   8.3    -4.0    14.0    1.1    19.7

Income
(percentage of MSA
median)(2)
Less than 50             21.6   -16.5    25.9    6.7    36.5
50-79                    91.0    -3.1    17.9    3.5    28.9
80-119                    7.0    -3.7    12.7    -.2    15.8
120 or more               6.2    -2.4    11.4    2.2    18.0
  Total                  80.0    -4.0    14.1    2.1    20.8

      NEIGHBORHOOD
     (CENSUS TRACT)
Racial or ethnic
composition
(minorities as a
percentage of
population)(3)
Less than 5               3.8    -3.2    14.2   -1.0    13.5
5-9                       4.8    -5.0    15.5    2.6    18.0
10-19                     8.7    -4.3    16.1    4.1    25.7
20-49                    11.7    -3.4    15.2    4.1    29.4
50 or more               16.8      .4     8.8    6.0    35.1
  Total                   7.4    -3.6    14.6    2.4    21.5

Income (median family)
(percentage of MSA
median)(3)
Less than 50             14.6     5.2    11.2    6.3    42.5
50-79                    12.2     4.1    10.6    2.5    32.4
80-119                    8.2    -1.7    13.8    1.4    22.8
120 or more               5.1    -8.2    16.9    3.5    16.8
  Total                   7.4    -3.6    14.6    2.4    21.5

All                       7.3    -3.6    14.6    2.4    21.4

NOTE. Includes only owner-occupied one- to four-family home purchase loans extended for properties in MSAs. The counties included are those that were in MSAs throughout the period. Thus, loan counts will differ from figures published by the FFIEC. Totals for the four borrower and neighborhood categories differ because information regarding borrower race or ethnic status and income or properly location was not reported for all loans.