Housing Finance Working Paper Series

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This paper describes home purchase and refinance mortgage market trends at the national level using HMDA data on mortgage denials and originations from 1998 and earlier. An important contribution of the paper is the recognition of manufactured home and subprime lenders that report to HMDA and their effect on mortgage market trends. The paper provides a list of 21 lenders that specialize in manufactured home lending and 200 lenders that specialize in subprime lending. The paper finds that manufactured home loan applications and their increasing denial rates were the primary reason for the increasing conventional denial rate since 1993. The paper also finds that conventional prime home purchase lending to minority and lower-income borrowers increased substantially between 1993 and 1994 but growth in lending to these groups since 1994 was attributable to growth in FHA, manufactured home, and subprime lending.