CFPB releases 4th annual Data Point on 2020 Mortgage Market Activity and Trends

Happy Wednesday, and first day of September!  If you’re like me, September means changes are coming – from my wardrobe (goodbye swimsuit, hello sweaters!) to my meal prep (all the soup!), to the days getting even shorter.  I love to use this time of year to check in with myself and the goals I have been working on throughout the year and identify what’s working, what’s not working, and any trends that may have emerged in my habits.

The CFPB also subscribes to this activity, and on August 19th, released its fourth annual Data Point on 2020 Mortgage Market Activity and Trends, based on the data collected under the Home Mortgage Disclosure Act (HMDA).  The report discusses mortgage applications and originations, mortgage outcomes by demographic groups and loan types, monthly mortgage trends and activities, mortgage trends and activities by state, and lending institutions using HMDA data from 2018 to 2020.

Mortgage Applications & Originations

2020 saw an increase in both data reported on applications (50% increase) and originations (56% increase), despite almost 19% fewer financial institutions reporting likely due to a change in reporting threshold in the 2020 HMDA rule.  The CFPB reports that “the large increase in the total number of originations and applications in 2020 is driven by the increase in closed-end mortgages,” as HELOC originations continue to decline.  However, the data shows that reverse mortgage originations have increased by 8,000, from 35,000 in 2019 to 43,000 in 2020.


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