Understanding HMDA Mortgage Data
What the nation's largest mortgage dataset reveals, and what it can't tell you.
Key Takeaway
HMDA data covers 12.2 million mortgage applications from 4,908 lenders. It shows who applies, who gets approved, who gets denied and why, and where lending happens, all at the individual lender level. Use it to evaluate lender track records before you apply, not to predict your own approval.
What HMDA Tracks
Every year, mortgage lenders report to the CFPB the details of each loan application they process. For each application, the data includes:
- Loan details: Amount, type (conventional, FHA, VA, USDA), purpose (purchase, refinance, home improvement), property type.
- Action taken: Originated (approved and funded), approved but not accepted, denied, withdrawn, incomplete, or purchased by another institution.
- Denial reasons: If denied, the specific reason(s) - debt-to-income ratio, credit history, collateral, insufficient cash, employment history, etc.
- Geography: State, county, and census tract where the property is located.
- Applicant information: Income, demographic categories (for fair lending analysis).
PlainLender makes this data searchable by lender, state, metro, and county.
| Lender | Originated loans | Denial rate |
|---|---|---|
| United Wholesale Mortgage | 366,078 | 11.7% |
| Rocket Mortgage | 361,071 | 14.9% |
| Crosscountry Mortgage, LLC | 101,894 | 2.4% |
| Bank of America NA | 83,165 | 34.6% |
| Navy Federal Credit Union | 82,022 | 23.9% |
The 5 largest HMDA-reporting lenders by 2024 loan originations, an example of the lender-level detail this dataset provides.
Why HMDA Matters for Borrowers
HMDA data gives you something no lender advertisement provides: objective performance data. Before applying for a mortgage, you can check:
- Approval rates: What percentage of applications does this lender approve? Low approval rates may indicate strict underwriting or a tendency to deny borderline applicants.
- Denial patterns: Why does this lender deny applications? If "debt-to-income ratio" is the top denial reason, you know to have your DTI in order.
- Lending volume: How many loans does this lender originate in your area? High-volume local lenders often have better market knowledge.
- Loan type mix: Does the lender do FHA loans (lower down payment) or only conventional? This affects which borrowers they can serve.
Limitations of HMDA Data
HMDA is powerful but incomplete. It does not include:
- Credit scores: The most important underwriting factor is not in HMDA data.
- Debt-to-income ratios: Only reported as a denial reason, not for approved loans.
- Property appraisals: Whether the property appraised at the purchase price.
- Rate lock details: The terms of the rate offered, negotiation history, or points paid.
This means you cannot conclude that a lender is discriminating simply because denial rates differ between groups, the differences may be entirely explained by factors not in the dataset (credit scores, DTI, down payment). HMDA data is best used for lender comparison, not for drawing conclusions about individual denials.
Frequently Asked Questions
What is HMDA?
The Home Mortgage Disclosure Act (HMDA) requires most mortgage lenders to report detailed data about each loan application they receive. This includes loan amount, property location, applicant income, loan type, action taken (approved, denied, withdrawn), and denial reasons. The Consumer Financial Protection Bureau (CFPB) compiles this into the largest public mortgage dataset in the world.
Who has to report HMDA data?
Most banks, credit unions, and mortgage companies that originate or purchase home loans must report if they meet asset and volume thresholds. This covers the vast majority of the mortgage market. Very small lenders below reporting thresholds are exempt, but they represent a small fraction of total lending.
What does HMDA data NOT include?
HMDA does not include interest rates for denied applications, credit scores, debt-to-income ratios, or detailed property information. It shows outcomes (approved/denied) and basic applicant demographics, but not the full underwriting picture. A denial might look unfair in HMDA data but be perfectly justified by factors not in the dataset.
How current is HMDA data?
HMDA data is released annually, typically 12-18 months after the reporting year. PlainLender currently shows 2024 data covering 12.2 million applications. This lag means the data reflects lending conditions from the prior year, not today's market.
What is an "originated" loan?
An originated loan is one that was approved AND funded, the borrower actually received the money. This is different from an approved application (where the borrower may have chosen not to proceed). Origination rate is the best measure of a lender's actual lending activity.
Can I use HMDA data to find the best mortgage rate?
Not directly. HMDA reports median interest rates for originated loans but doesn't show the rates offered to denied applicants or the rate negotiation process. Use HMDA to evaluate lender reliability (approval rates, volume, denial patterns), then shop for rates by getting quotes from multiple lenders.
Sources
- Consumer Financial Protection Bureau, HMDA Data, 2024
- Home Mortgage Disclosure Act, 12 U.S.C. §§ 2801-2810
This content is for informational purposes only and does not constitute financial advice. Consult a mortgage professional for guidance specific to your situation.
