MORTGAGE INDUSTRY STATISTICS

General Mortgage Statistics

Total U.S. mortgage debt outstanding was $10.7 trillion at the end of the third quarter 2006.
Source: Federal Reserve data

Single family home loan originations are expected to total $2.33 trillion in 2007.
Source: Fannie Mae

In 2005, adjustable rate mortgages (ARMs) accounted for 31% of originated loans for 1-4 family units, and refinance loans accounted for 48.9% of loans originated for 1-4 family units.
Source: A Statistical Summary of Housing and Mortgage Financing Activities, Fannie Mae, 2006

An estimated $1 trillion adjustable rate mortgage debt will reset in 2007.
Source: A House of Cards: Refinancing the American Dream, Demos, November 2006.

Those who do not refinance could see their payments increase by 25%.
Source: John Tuccillo, former chief economist for the National Association of Realtors.

Nationwide, the share of mortgages that were interest-only shot up from 1.5% in 2001 to 6% in 2002, 13% in 2003, to 31% in 2004.
Source: BusinessWeek, A Growing Tide of Risky Mortgages by Peter McCoy May 18, 2005.

The majority of consumers (53 percent) conduct their research for mortgage loans online. Twenty-seven percent indicated that they applied for their mortgage online.
Source: Selling Money Research conducted for Yahoo! Inc. June 2005

77 percent of mortgage companies surveyed agreed Internet consumer is more price-sensitive than any other group of mortgage consumers. Thus, it appears most of the savings obtained by using the Internet will be passed on to consumers.
Source: 2003 Internet Mortgage Industry Survey and Mortgage Consumer Survey by Myers Internet

Mortgage brokers originate an estimated half of all residential mortgages, and roughly 70% of subprime loans.
Source: Mortgage Banker's Association MBA Research DataNotes Sept. 2006.

The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.67 percent of all loans outstanding in the third quarter of 2006 on a seasonally adjusted (SA) basis, up 23 basis points from one year ago.
Source: Mortgage Banker's Association National Delinquency Survey December 2006.

Households cashed out $715 billion worth of equity from homes between 2001 and 2005.
Source: A House of Cards: Refinancing the American Dream, Demos, November 2006.

Yield Spread Premiums ("Hidden Mark Ups")

Loans that include a YSP are typically $800 to $3000 more expensive than loans without a YSP. On average, mortgage brokers earn $1,046 more when closing loans that contain a YSP than on loans without one. More than 75% of borrowers with loans that included YSPs could have used a less expensive method to help pay closing costs.
Source: Kickbacks or Compensation: The Case of Yield Spread Premiums,Howell E. Jackson and Jeremy Berry Harvard Law School January 8, 2002

Yield spread premiums (YSPs) are included in 85 to 90% of all subprime mortgages.
The average amount of a YSP is about $1,850 per loan, making these payments the largest part of a broker's compensation.
There is no legal requirement to inform borrowers about the connection between the YSP and the interest charged on a loan.

Source: Center for Responsible Lending report Yield Spread Premiums, a Powerful Incentive for Equity Theft. June 18, 2004

African Americans and Mortgages

Homeownership rates among African Americans increased 6.6 percentage points between 1993 and 2005.
Source: Department of Housing and Urban Development Office of Policy and Research March 2006.

African Americans were more likely to receive higher-rate home purchase and refinance loans than similarly situated white borrowers, particularly for loans with prepayment penalties.
Source: Unfair Lending, the Effect of Race and Ethnicity on Subprime Mortgages, Center for Responsible Lending, May 31, 2006.

Upper income African American women are nearly five times more likely to receive subprime purchase mortgages than upper income white men.
Source: Women Are Prime Targets for Subprime Lending, Consumer Federation of America December 2006.

An estimated 8 to10 percent of all African American and Latino families who received a home loan in 2005 will be affected by subprime foreclosures.
Source: Losing Ground, Foreclosures in the Subprime Market and Their Cost to Homeowners, Center for Responsible Lending December 2006.

Hispanics and Mortgages

Fifty percent of Hispanics were homeowners at the end of 2005, a 10.6% increase between 1993 and 2005.
Source: Department of Housing and Urban Development Office of Policy and Research March 2006.

Hispanics accounted for more than one-third of the total growth in U.S. households between 1995 and 2005.
Owner-occupied homes accounted for nearly two-thirds of the total growth in Hispanic households between 1995 and 2005.

Source: Hispanic Housing in the United States 2006, University of Notre Dame's Institute for Latino Studies (ILS) and Esperanza USA.

Latino borrowers were more likely to receive higher-rate loans than similarly situated non-Latino white borrowers for mortgages used to purchase homes.
Source: Unfair Lending, the Effect of Race and Ethnicity on Subprime Mortgages, Center for Responsible Lending May 31, 2006.

Upper income Latino women are nearly four times more likely to receive subprime loans than upper income white men.
Source: Women Are Prime Targets for Subprime Lending, Consumer Federation of America December 2006.

Women and Mortgages

Single female homebuyers increased from 14% in 1995 to 21% in 2005.
Source: National Association of Realtors® 2006 Survey of Homebuyers and Sellers

3.7 unmarried female householders purchased a home between 2000 and 2003. Over 70% obtained financing for the purchase.
Source: Buying for Themselves: An Analysis of Unmarried Female Home Buyers, Rachel Bogerdus Drew, Joint Center for Housing Studies at Harvard University, June 2006. © 2006 President and Fellows of Harvard College.

In 2005, about a third of women took out mortgages with interest rates over 7.66% (well above the average prime mortgage rate of 5.87%) compared to about a quarter of men.
Women are more likely to receive subprime mortgages of all types, regardless of income, and disparity between men and women rises as income rises.

Source: Women Are Prime Targets for Subprime Lending, Consumer Federation of America December 2006.

Non-prime/ Subprime Mortgage Statistics

Subprime lending has grown from 5% of conventional loans in 1994 to 26% of loans in 2005. Source: Federal Reserve Bulletin, Higher-Priced Home Lending and the 2005 HMDA Data, Summer 2006.

Over 6 million homeowners hold nonprime mortgage loans.
Annual nonprime home equity loan originations exceed $600 billion.
The average nonprime mortgage loan is $130,000.
The average nonprime mortgage borrower earns $54,165 a year.
Between 30% and 50% of all Americans are classified as nonprime borrowers.
The average nonprime borrower had a 638 FICO (Fair, Isaac & Co.) credit score in 2004, an increase from 607 in 2001.

Source: National Home Equity Loan Mortgage Association

2.2 million subprime loans made in recent years have failed or will end in foreclosure.
These foreclosures will cost homeowners an estimated $164 million.
One of five subprime mortgages originated in the next two years will end in foreclosure.

Source: Losing Ground, Foreclosures in the Subprime Market and Their Cost to Homeowners, Center for Responsible Lending December 2006.

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