Some Still-Ugly Truths

In this in-depth report, we build on our preliminary analysis of the CFPB’s latest HMDA-data assessment.  As we noted on Thursday, the agency chose to highlight its totally-unsurprising finding that the mortgage market was hot, hot, hot in 2020.  This won’t distract advocates from the heart of the HMDA data showing continuing and to some degree worsening racial and ethnic disparate impact from 2018 through 2020.  This will lead to still more demands on the GSEs from a still more proactive FHFA.  And, while FHFA lacks the authority banking agencies have over third-party providers, FHFA will also do what it can to pressure credit reporting agencies, FHLBs, MIs, servicers, and others in the single-family mortgage value chain.