HMDA Analysis for Texas 2016
Each September the Federal Financial Institutions Examination Council (FFIEC) publishes the Home Mortgage Disclosure Act (HMDA) data for the previous year. The following is an analysis of that data for MH loan originations in the state of Texas for 2016. Each section inlcudes data tables with categorical totals and year-over-year changes for both MH and site-built homes. This analysis covers only those mortgages secured by a first-lien for owner-occupied, 1-4 family homes (including manufactured housing).
Lending Activity Totals for Texas in 2016
The number of lending institutions for both site-built and MH mortgages declined in 2016 by -12.0% and -23.3% respectively. Across both housing types total loans originated declined as well. For MH the year-over-year decline stemmed from a -2.8% drop in refinance loans and a -78.7% drop in home improvement loans. MH purchase loans were up 0.5% from 2016.
In contrast, site-built saw a larger -12% decline in originations, with purchase loans down -7.1%. Refinance loans were up 3.6% and similar to MH lending there was a large decrease of -54.7% in home improvement loans.
| Lending Totals | MH | Change (YoY%) | Site-built | Change (YoY%) | MH Share of Total |
|---|---|---|---|---|---|
| Lenders | 273 | -23.31% | 1,221 | -11.97% | 22.18% |
| Loans Originated | 11,229 | -2.82% | 513,200 | -5.96% | 2.14% |
| Purchase Loans | 9,988 | 0.46% | 301,360 | -7.14% | 3.21% |
| Refi Loans | 1,149 | -2.79% | 198,432 | 3.57% | 0.58% |
| Improvement Loans | 92 | -78.65% | 13,408 | -54.66% | 0.68% |
Purchase Loan Breakdown for Texas in 2016
The increase in MH purchase loans was driven by an expansion in federally backed lending. Conventional purchases were down -2.8% from 2015, while FHA purchases were up 21.5% and VA purchases were up 23.5%. Rural purchase loans were up 25% as well, but one additional loan over last year’s four is further proof that the program is not as effective as it should be. Especially given the program had a -12.2% decline in site-built purchases.
The site-built market saw an increase in federal program lending as well, but it was offset by a deeper decline in conventional purchases, pulling total purchase originations down for the year.
Despite the federal lending increases for MH, the overall distribution of purchases across the four loan types was little changed from 2015 and is still very different from the site-built distribution. To help retailers identify which lenders offer which purchase loan programs we’ve created a new HMDA MH Lender Purchase Loan Type report. The new report totals up the number of loans each lender did in the state across the four purchase loan types and also details the median loan values and median applicant income for each lender’s purchase loan originations.
To further help retailers find which lenders are active in the county markets they serve, we have also released the HMDA Lender MH Purchase Loans per County report which totals the number of MH purchase loans each lender originated in every county in the state. The report also details the median loan value for each lender per county as well as the median applicant income lender per county.
| Purchase Loans | MH | Change (YoY%) | Share of MH Purchases | MH Share of Total |
|---|---|---|---|---|
| Conventional Purchase Loans | 8,380 | -2.81% | 83.9% | 4.56% |
| FHA Purchase Loans | 1,356 | 21.51% | 13.58% | 1.58% |
| VA Purchase Loans | 247 | 23.5% | 2.47% | 0.65% |
| FSA/RHS Purchase Loans | 5 | 25% | 0.05% | 0.13% |
| Purchase Loans | Site-built | Change (YoY%) | Share of Site-built Purchases | Site-built Share of Total |
|---|---|---|---|---|
| Conventional Purchase Loans | 175,556 | -14.86% | 58.25% | 95.44% |
| FHA Purchase Loans | 84,198 | 6.23% | 27.94% | 98.42% |
| VA Purchase Loans | 37,770 | 8.78% | 12.53% | 99.35% |
| FSA/RHS Purchase Loans | 3,836 | -12.24% | 1.27% | 99.87% |
Secondary Market for Texas in 2016
In the secondary markets, site-built saw declines across the board in line with the overall decline in purchase loans for the state, while MH grew GSE purchases from both Fannie and Freddie in 2016. The two purchasing institutions together account for less than 4.5% of MH purchase loans however, while a full 33.7% of site-built purchase loans are bought by the GSEs.
Other institution purchases were up significantly for MH in 2016, but those appear to be lender originations that were subsequently sold to the state’s large MH community operators.
| Purchaser | Share of MH | Change (YoY%) | Share of Site-built | Change (YoY%) |
|---|---|---|---|---|
| Fannie Mae Purchased | 3.47% | 8.99% | 29.13% | -8.01% |
| Freddie Mac Purchased | 0.76% | 23.08% | 14.64% | -5.38% |
| Other Institution Purchased | 11.17% | 906.45% | 32.46% | -9.59% |
| Not Sold | 84.59% | -13.65% | 23.77% | -30.92% |
Demographics of Texas Home Purchase Loan Applicants in 2016
Median income declined for both MH and site-built purchases, while median loan amounts, a decent proxy for home sales price, moved up for both housing types. MH loan values increased at a lower rate than site-built, and some of the MH increase should stem from the growth in multi-section homes sales that we saw for 2016. In fact, according to the US Census Bureau’s Manufactured Housing Survey, double-wide home prices in the South increased only 4.6% in 2016.
Site-built loan values by contrast increased 10.75% over 2015, widening the gap between the two housing types median loan amounts. Last year the median site-built home was 3.1 times more than the median MH home. This year that ratio has increased to 3.22:1, so the MH value proposition has only gotten better. The HMDA data confirms this further when we look at the increase MH experienced in low income purchasers. MH lenders originated 4.34% more loans to low and very low-income borrowers in 2016 over 2015, while site-built saw a -5.78% decline. Filtering down to only those home purchasers with very low-income, MH purchases held flat year-over-year while site-built saw a -17.1% decrease. MH now makes up 8.5% of total low-income borrower home purchases and a full 15.3% of very low-income borrower home purchases.
Low-income borrowers makeup 51.5% of all MH purchases and with last year’s passage of the Housing Opportunity through Modernization Act of 2016 opening up Section 8 voucher recipients to use those vouchers towards the purchase of manufactured homes, it could be a good idea to reach out to your local HUD Office or to TDHCA if you do business in one of their service counties to inquire about working with them on placing people in homes.
| Income and Loan Values | MH | Change (YoY%) | Site-built | Change (YoY%) |
|---|---|---|---|---|
| Median Income | $48,000 | -2.04% | $86,000 | -4.44% |
| Median Loan Amount | $64,000 | 6.67% | $206,000 | 10.75% |
| Percent of Borrowers - Low-income | 51.47% | 4.34% | 18.29% | -5.78% |
| Percent of Borrowers - Very Low-income | 16.62% | 0.06% | 3.05% | -17.07% |
Looking at home purchases inside and outside of Metropolitan Statistical Areas, the growth in MH purchases for 2016 came from inside MSAs. The -3.6% decline in MH purchases outside the MSAs was much less than the -14.5% decline for site-built purchases in those areas. The inside/outside MSA split is not the cleanest break for rural vs urban areas, but it’s the best one available in HMDA. Using it, we see that MH purchasers moved up in market share to account for 15.1% of definitely rural home purchases.
| Rural/Urban | MH | Change (YoY%) | Share of MH Purchases | MH Share of Total |
|---|---|---|---|---|
| Purchase Loans Inside MSAs | 7,146 | 2.19% | 71.55% | 2.44% |
| Purchase Loans Outside MSAs | 2,842 | -3.63% | 28.45% | 15.07% |
| Rural/Urban | Site-built | Change (YoY%) | Share of Site-built Purchases | Site-built Share of Total |
|---|---|---|---|---|
| Purchase Loans Inside MSAs | 285,338 | -6.69% | 94.68% | 97.56% |
| Purchase Loans Outside MSAs | 16,022 | -14.48% | 5.32% | 84.93% |
MH purchases saw gains across all race/ethnicity groups in 2016 over 2015 except for a -23% decline in Asian borrowers. Site-built saw a similar decline in Asian borrowers but also experienced a -9.8% decrease in borrowers identifying as White non-Hispanic. The minority populations of both African American and Hispanic borrowers increased their share of total MH home loan purchases in 2016.
| Race/Ethnicity of Purchasers | MH | Change (YoY%) | Site-built | Change (YoY%) |
|---|---|---|---|---|
| Percent of Borrowers - American Indian or Alaska Native | 1.2% | 0% | 0.69% | 7.21% |
| Percent of Borrowers - Asian | 0.59% | -22.95% | 8.12% | -10.08% |
| Percent of Borrowers - Black or African American | 5.8% | 15.37% | 8.05% | 10.46% |
| Percent of Borrowers - Hispanic | 43.53% | 9.67% | 23.37% | 4.44% |
| Percent of Borrowers - Native Hawaiian or Other Pacific Islander | 0.25% | 185.71% | 0.41% | 11.23% |
| Percent of Borrowers - White Non-Hispanic | 51.69% | 2.37% | 59.79% | -9.79% |
Geographic Distribution of Texas Home Purchase Loan Applicants in 2016
Each year in tandem with this analysis, we release purchase total reports for both the counties and the MSAs across the state. Both of our geographic reports have been updated to include the median loan values for MH and site-built homes, as well as the median applicant income for both housing sectors in each location.
At the county level, the same counties from last year made up the top five for MH purchase loans in 2016, although Harris and Ector dropped from the top two positions down to four and five.
| Top Five Counties for MH Purchase Loans | Total |
|---|---|
| Bexar County | 418 |
| Travis County | 367 |
| Montgomery County | 348 |
| Harris County | 317 |
| Ector County | 255 |
Looking at the MSAs, the same five landed in the top spots as 2015 with only “Austin, Round Rock” swapping with “Dallas, Plano, Irving.”
| Top Five MSAs for MH Purchase Loans | Total |
|---|---|
| Houston, The Woodlands, Sugar Land - TX | 1,369 |
| San Antonio, New Braunfels - TX | 1,107 |
| Dallas, Plano, Irving - TX | 869 |
| Austin, Round Rock - TX | 836 |
| Fort Worth, Arlington - TX | 697 |
Explore the Data
If you are a TMHA member and are interested in addiitonal details, we’ve built out the following reports and will update these annually with each HMDA release: