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TRANSCRIPT
Technical Report Series
A Profile of 2016 Mortgage Borrowers: Statistics from the National Survey of
Mortgage Originations
Technical Report 6.0
April 18, 2018
This document was prepared by Robert B. Avery, Mary F. Bilinski, Audrey Clement, Tim Critchfield, Samuel Frumkin, Ian H. Keith, Ismail E. Mohamed, Forrest W. Pafenberg, Saty Patrabansh, and Jay D. Schultz.
Table of Contents
1. Introduction .................................................................................................................... 1
2. Comparing the 2016 NSMO with 2016 Home Mortgage Disclosure Act Data ........... 2
3. Profile of 2016 Mortgage Borrowers .............................................................................. 3
4. Borrower Knowledge of the Mortgage Process .............................................................. 4
5. Selecting a Mortgage: Mortgage Broker versus Mortgage Lender ............................. 16
6. During the Application Process .................................................................................... 23
7. Closing on a Mortgage ................................................................................................. 27
8. Satisfaction with Mortgage Terms, Mortgage Process, and Information ..................... 31
9. Opinions on Homeownership and Financial Responsibility ......................................... 34
10. Recent Changes in Neighborhood Housing .................................................................. 37
11. Expectations on Neighborhood House Prices and Neighborhood Desirability ............ 40
12. Financial Expectations .................................................................................................. 42
Appendix. About the National Mortgage Database Project ................................................... A-1
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
i
1. Introduction This is the fourth Technical Report on the responses received to the National Survey of Mortgage Originations (NSMO or survey), which is jointly administered by the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB).1 The survey collects information from a representative sample of recent mortgage borrowers about their experiences in choosing and taking out a mortgage. It is designed to provide researchers, policy makers, and other interested parties with comprehensive data about the consumer experience when getting a mortgage. The NSMO is a recurring quarterly mail survey of new mortgage borrowers using a sample drawn from the National Mortgage Database (NMDB®).2 The NMDB® is a representative 1-in-20 sample of closed-end first-lien mortgages reported to Experian, one of the three national credit repositories. From the second quarter of 2016 to the second quarter of 2017, NSMO sent surveys to 23,724 borrowers with mortgages originated in 2016, representing an average sampling rate of 1-in-320. Of the solicited surveys, 6,285 usable responses were received, making the effective response rate for 2016 originations 26.5 percent.3 A total of 7.6 million closed-end first-lien mortgages were originated in 2016, which means that one average useable survey response is representative of 1,207 mortgages.4 The NSMO is a voluntary survey, and the questions included in the survey focus on topics such as mortgage shopping behavior, mortgage closing experiences, and other information not readily available from other sources. In completing this survey, borrowers provide information about a range of topics, such as expectations about house price appreciation, critical household financial events, and life events such as unemployment, large medical expenses, or divorce.
1 Reports for 2013, 2014 and 2015 mortgages and other NMDB® documents are available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/Pages/National-Mortgage-Database.aspx and https://www.consumerfinance.gov/data-research/research-reports/technical-reports-national-survey-of-mortgage-borrowers-and-national-mortgage-database/. 2 The National Mortgage Database project is a multi-year project being jointly undertaken by the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB). The project is designed to provide a source of information about the U.S. mortgage market based on a 5 percent sample of residential mortgages. The NMDB® will enable FHFA to meet the statutory requirements of section 1324(c) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008, to conduct a monthly mortgage market survey. For CFPB, the NMDB® project will support policymaking and research efforts and help identify and understand emerging mortgage and housing market trends. For further information on the NMDB®, see National Mortgage Database Technical Report 1.2. For additional background, also see the Appendix of this Report. 3 There are several ways by which calculations based on the NSMO raw survey responses may not be representative of the population as a whole. Consequently, survey responses must be appropriately weighted. Commonly, in survey sampling, some individuals chosen for the sample are unwilling or unable to participate in the survey. Nonresponse bias (either complete nonresponse to the survey or nonresponse to selected items within the survey) is the bias that results when respondents differ in meaningful ways from non-respondents. To address this nonresponse bias, the NSMO uses weighting to adjust for differential response to the survey. In addition, to address missing information on individual questions within the survey, the NSMO uses statistical methods to impute missing data. The imputation technique makes multiple estimates of missing data to allow for an estimate of the uncertainty attributable to this type of nonresponse. See National Survey of Mortgage Borrowers Technical Report 2.3 for more details. 4 The weighted percentages reported in this technical document represent the respondents who took out a mortgage in 2016. The words “respondent” and “borrower” are used interchangeably throughout the document.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
1
This Report presents the results from the 6,285 responses to the survey and provides an overview of the mortgage market and borrowers’ experiences in 2016. Section two compares the 2016 NSMO with 2016 Home Mortgage Disclosure Act (HMDA) data. Section three contains information about the overall profile of survey respondents in 2016, including their demographic characteristics and the kind of mortgages they obtained. Sections four through seven describe how the 2016 borrowers shopped for their mortgages and the application and closing processes. Section eight presents information about borrowers’ mortgage outcomes and measures of their satisfaction in the mortgage application and closing process. Section nine discusses borrowers’ opinions on financial responsibility, and section ten examines borrowers’ opinions on the neighborhood where they obtained their mortgage. Sections eleven and twelve discuss borrowers’ expectations for house prices, neighborhood desirability, and their own financial circumstances over the next couple of years. The Appendix to this Report provides details on the overall NMDB® project, as well as the sampling and data preparation procedures for the NSMO. 2. Comparing the 2016 NSMO with 2016 Home Mortgage Disclosure
Act Data This section provides a comparison of the 2016 NSMO survey responses with the 2016 HMDA data. This comparison is useful because HMDA data are generally accepted as including close to the total of all first-lien mortgages originated in the United States. As a result, this comparison provides a useful benchmark to validate the overall statistical methodology of NSMO. As shown in Table 1, estimates derived from the NSMO data show that there were approximately 7.1 million first-lien mortgage loans associated with owner-occupied homes in 2016. The NSMO estimates for both the loan count and the market dollar estimates are similar to the HMDA estimates. The average loan size for owner-occupied homes in the NSMO was slightly lower than in HMDA – $244,411 compared with $255,263.
The estimate of mortgage loans associated with non-owner-occupied properties from the NSMO data is lower than the estimate from HMDA. HMDA estimates 794,088 such mortgages, 61 percent greater than the number estimated from the NSMO. The NSMO data suggest $105 billion in mortgage originations in 2016 associated with non-owner-occupied properties, while HMDA suggests $190 billion. One explanation for this difference is that HMDA reporting covers some larger mortgages made to business partnerships for non-owner-occupied properties that are not reported to the credit bureaus and, thus, are not represented in the NSMO.
Count (Thousands)1 Volume (Billion Dollars)1 Count (Thousands)1 Volume (Billion Dollars)Owner-occupied 7,092 1,733 6,916 1,765
Purchase 3,596 866 3,545 896 Refinance 3,496 867 3,371 870
Not owner-occupied 493 105 794 190
Notes: The owner-occupied count total from the NSMO does not equal the sum of purchase and refinance counts from the NSMO due to rounding.Source: National Survey of Mortgage Originations, 2016 and Home Mortgage Disclosure Act, 2016
Table 1. Comparison of Mortgage Originations, 2016(Count and Dollar Volume)
National Survey of Mortgage Originations (NSMO) Home Mortgage Disclosure Act (HMDA)Mortgage Originations
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
2
3. Profile of 2016 Mortgage Borrowers Tables 2 through 5 present characteristics of NSMO respondents who acquired a mortgage in 2016. These tables show the distributions of loan and property characteristics for several demographic groups. Table 2 presents loan type, and Table 3 presents loan size and mortgage term to maturity. Table 4 presents credit score, and Table 5 presents property type. The bottom row of each table shows the percentage distribution of each loan or property characteristic. Table 6 presents information about the household life events experienced by survey respondents over the last couple of years. Loan Type and Loan Size Table 2 reflects that a slight majority of 2016 mortgage loans reported in the survey were used to purchase a property. Fifty-one percent of survey respondents reported they purchased a home, and 49 percent reported they refinanced5 an existing mortgage. Owner-occupants represented 94 percent of mortgage borrowers, with 47 percent of borrowers having purchased a home that they occupied and 46 percent having refinanced an existing mortgage for a home they occupied. The remaining 6 percent of borrowers were non-occupant investors (owners of seasonal homes, homes for relatives, and rental or investment homes are categorized as investors). Table 3 reflects that of the 51 percent of respondents who purchased a home, 36 percent were first-time homeowners, 56 percent were repeat homeowners, and the remaining 8 percent were non-occupant investors. Of the 49 percent of respondents who refinanced an existing mortgage, 38 percent refinanced a mortgage for the borrower’s primary residence and borrowed additional money, 56 percent refinanced a mortgage for the borrower’s primary residence without extracting equity, and the remaining 5 percent refinanced a mortgage for a non-owner-occupied investment. About half of all respondents (52 percent) were 45 years old or younger, and 63 percent of home-purchase borrowers were 45 years old or younger. About three-quarters of respondents (73 percent) reported that they were non-Hispanic white, 10 percent reported they were Hispanic white, 8 percent indicated they were Asian, and 6 percent stated that they were Black or African American. Three percent of respondents indicated that they were American Indian or Alaska Native, Native Hawaiian or Pacific Islander, or of more than one race. Three-quarters of the respondents who took out a mortgage in 2016 were in households with two adults living together, with 68 percent reporting they were married and 8 percent reporting they were living with a partner. The percentage of married couples was somewhat higher for refinancers than for home purchasers, and the percentage of borrowers with a partner was higher for home purchases than for refinancers. Almost 25 percent of borrowers indicated that they were single—13 percent single females and 11 percent single males. Overall, 87 percent of households included at least one full-time worker. This percentage was higher for homebuyers
5 In this report, refinances include all non-purchase mortgages, 94 percent of which are traditional refinances or modifications, 3 percent are loans on a mortgage-free property, 3 percent are permanent financing of a construction loan, and 1 percent are mortgages for a change in borrowers.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
3
(90 percent) than those who refinanced (84 percent). Eighteen percent of borrowers reported that they were on active duty or were veterans of the U.S. military.6 About 17 percent of respondents reported household income in 2016 of less than $50,000 compared to 53 percent of all households in the United States based on the 2013 Survey of Consumer Finances (SCF).7 Credit Score and Property Type Table 4 reflects that 60 percent of survey respondents had a credit score of 720 or higher, 34 percent had a credit score between 620 and 719, and 6 percent had a credit score below 620. Sixty percent of homebuyer respondents had a credit score of 720 or higher, similar to respondents who refinanced. Nineteen percent of homebuyer respondents had a credit score below 680, similar to respondents who refinanced (18 percent). Survey respondents were asked to describe their property type. As shown in Table 5, single-family properties were the primary property type used to collateralize the respondent’s mortgage. Eighty-four percent of respondents reported that their property was a single-family detached home, 6 percent townhouses, 5 percent condominiums, 3 percent 2-, 3- and 4-unit dwellings, and 2 percent manufactured homes. Life Events Many respondents reported that they had experienced one or more life events over the last couple of years. The results are reflected in Table 6. Eight percent of respondents indicated that they had divorced or separated, 13 percent indicated they had married or had a new partner, 8 percent reported experiencing a disability or major illness, 2 percent reported that a disaster had affected their home, 2 percent reported that a disaster had affected their job, 30 percent indicated that they moved up to 50 miles from their previous residence, and 15 percent indicated that they moved 50 miles or more from their previous residence. 4. Borrower Knowledge of the Mortgage Process The survey asked borrowers about their knowledge and familiarity with mortgage terminology and the mortgage process, and about their ability to explain the mortgage process. Borrowers’ knowledge about the mortgage process differed significantly based on demographic characteristics and whether the consumer was shopping for a home and a mortgage at the same time. First-time homebuyers differed significantly from repeat homebuyers in their knowledge about mortgages. The extent of mortgage knowledge also differed for repeat borrowers depending on whether they were refinancing or purchasing a home.
6 The question about military and veteran status was revised in the fifteenth wave of NSMO to match the revised question in the American Community Survey (ACS). Only 6,109 responses up to the fourteenth wave of NSMO were used to calculate this share. 7 See National Mortgage Database Technical Report 3.1 for additional comparison of household income in the 2013 SCF to reported income for borrowers with a 2013 origination captured in the NSMO. For more about the Survey of Consumer Finances including results from the 2013 SCF, see http://www.federalreserve.gov/econresdata/scf/scfindex.htm.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
4
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Tabl
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Loa
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pe, b
y D
emog
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ic a
nd P
rope
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Cha
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tics
(Per
cent
age
Dist
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Char
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are
ofAl
l Loa
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ype
Purc
hase
1Re
finan
ce1
(Con
tinue
d on
the
next
pag
e)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
5
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.8
0.
4
0.
0
1.
2
18
.6
62
0 to
639
51.1
27.3
23
.0
0.
6
0.
0
0.
3
48
.9
28
.5
20
.2
0.
0
0.
2
0.
0
4.
6
64
0 to
659
54.1
27.1
26
.1
0.
7
0.
2
0.
0
45
.9
20
.6
23
.8
0.
3
0.
0
1.
3
6.
9
66
0 to
679
54.4
19.9
32
.8
0.
5
0.
6
0.
6
45
.6
19
.7
23
.6
0.
7
0.
0
1.
7
7.
1
68
0 to
719
53.3
23.5
27
.8
0.
7
0.
7
0.
7
46
.7
19
.1
25
.1
0.
8
0.
3
1.
4
15
.0
68
0 to
699
54.0
23.2
28
.4
1.
2
0.
7
0.
4
46
.0
19
.3
24
.3
1.
1
0.
6
0.
7
7.
4
70
0 to
719
52.7
23.8
27
.2
0.
2
0.
7
0.
9
47
.3
18
.8
25
.9
0.
4
0.
0
2.
2
7.
6
72
0 or
Hig
her
51.0
15.3
30
.1
1.
9
0.
8
3.
0
49
.0
16
.7
29
.4
0.
7
0.
3
2.
0
60
.3
72
0 to
739
51.0
23.2
24
.4
1.
1
0.
1
2.
2
49
.0
17
.5
28
.4
0.
4
0.
3
2.
5
9.
9
74
0 or
Hig
her
51.0
13.7
31
.2
2.
0
0.
9
3.
2
49
.0
16
.5
29
.6
0.
7
0.
3
1.
9
50
.4
Lo
an T
ype
Purc
hase
110
0.0
36.2
56
.1
2.
6
1.
2
3.
8
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
51
.3
Fi
rst-T
ime
Hom
eow
ner2
100.
0
10
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.6
Rep
eat H
omeo
wne
r10
0.0
0.0
100.
0
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
28
.8
Se
ason
al H
ome
100.
0
0.
0
0.
0
10
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.3
Rel
ativ
e H
ome
100.
0
0.
0
0.
0
0.
0
10
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.6
Inve
stm
ent H
ome
100.
0
0.
0
0.
0
0.
0
0.
0
10
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.0
Ref
inan
ce1
0.0
0.0
0.0
0.0
0.0
0.0
100.
0
38
.3
56
.4
1.
2
0.
5
3.
6
48
.7
H
omeo
wne
r Cas
hout
30.
0
0.
0
0.
0
0.
0
0.
0
0.
0
10
0.0
100.
0
0.
0
0.
0
0.
0
0.
0
18
.6
H
omeo
wne
r Reg
ular
0.0
0.0
0.0
0.0
0.0
0.0
100.
0
0.
0
10
0.0
0.0
0.0
0.0
27.5
Seas
onal
Hom
e0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
10
0.0
0.0
0.0
100.
0
0.
0
0.
0
0.
6
R
elat
ive
Hom
e0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
10
0.0
0.0
0.0
0.0
100.
0
0.
0
0.
2
In
vest
men
t Hom
e
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
10
0.0
0.0
0.0
0.0
0.0
100.
0
1.
7
Pr
oper
ty T
ype
Sing
le-fa
mily
Det
ache
d H
ouse
49.5
18.0
29
.0
1.
0
0.
3
1.
2
50
.5
19
.7
28
.6
0.
6
0.
2
1.
4
84
.1
To
wnh
ouse
, Row
Hou
se, o
r Villa
63.2
22.9
31
.7
3.
5
1.
6
3.
4
36
.8
9.
6
24
.4
1.
3
0.
2
1.
3
6.
1
M
obile
or M
anuf
actu
red
Hom
e
55.7
21.3
26
.6
3.
5
2.
6
1.
6
44
.3
22
.6
20
.9
0.
4
0.
5
0.
0
2.
0
Tw
o-to
-Fou
r Uni
t Dw
ellin
g
57
.0
16
.3
21.4
1.3
4.3
13.7
43
.0
17
.5
17
.0
0.
5
0.
0
8.
0
2.
9
C
ondo
, Apa
rtmen
t Hou
se, o
r Co-
op
61.1
25.4
25
.3
3.
5
1.
7
5.
2
38
.9
11
.2
21
.7
0.
2
1.
0
4.
8
4.
7
O
ther
84.7
0.0
50.5
3.0
6.2
25.0
15
.3
0.
0
7.
9
0.
0
0.
0
7.
4
0.
3
A
ll R
espo
nden
ts51
.3
18
.6
28.8
1.3
0.6
2.0
48.7
18.6
27.5
0.6
0.2
1.7
100.
0
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all o
ther
mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
Refin
ance
2
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
4. T
he "a
ll oth
er ra
ces"
cat
egor
y in
clud
es re
spon
dent
s w
ho re
porte
d be
ing
Amer
ican
Indi
an/A
lask
a N
ativ
e or
Nat
ive
Haw
aiia
n/Pa
cific
Isla
nder
and
resp
onde
nts
who
repo
rted
mul
tiple
race
cat
egor
ies.
2. C
redi
t sco
re, l
oan
size
, mor
tgag
e te
rm to
mat
urity
, and
firs
t-tim
e ho
meb
uyer
sta
tus
are
asse
mbl
ed fr
om th
e N
atio
nal M
ortg
age
Dat
abas
e. C
redi
t sco
re fr
om V
anta
ge ra
nges
from
300
to 8
50. A
hom
ebuy
er is
cl
assi
fied
as fi
rst-t
ime
if ne
ither
the
resp
onde
nt n
or th
e sp
ouse
is o
lder
than
54
year
s in
age
and
ther
e is
no
evid
ence
of a
prio
r mor
tgag
e in
the
cred
it fil
es.
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prio
r mor
tgag
e am
ount
or i
f a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, the
mor
tgag
e is
cla
ssifi
ed a
s a
cash
out r
efin
ance
.
Tabl
e 2.
Loa
n Ty
pe, b
y D
emog
raph
ic a
nd P
rope
rty
Cha
ract
eris
tics
(Con
tinue
d)(P
erce
ntag
e Di
strib
utio
n)
Char
acte
ristic
sLo
an T
ype2
Shar
e of
All L
oans
Purc
hase
2
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
6
$50,
000
or L
ess
$50,
000
to
$150
,000
$150
,001
to
$300
,000
Mor
e th
an
$300
,000
Less
than
15
Yea
rs15
Year
s15
to 3
0Ye
ars
30 Y
ears
or M
ore
Res
pond
ent A
ge35
Yea
rs o
r You
nger
1.8
31.9
43
.8
22.5
0.
8
8.
4
4.
4
86.4
26
.7
38
.3
14
.5
36
to 4
51.
5
23
.8
41.9
32
.9
2.0
15.3
8.
1
74.6
25
.0
24
.3
25
.8
46
to 5
51.
2
29
.7
41.9
27
.1
3.0
17.9
9.
3
69.8
22
.1
18
.2
26
.1
56
to 6
53.
3
36
.1
39.4
21
.2
6.1
17.8
9.
0
67.0
16
.1
11
.6
20
.9
O
lder
than
65
5.
1
38
.5
38.2
18
.1
5.6
14.2
6.
2
74.0
10
.1
7.
6
12
.7
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te2.
4
32
.0
42.5
23
.1
3.3
14.7
7.
6
74.5
73
.1
72
.8
73
.3
H
ispa
nic
and
Non
-Whi
te1.
5
27
.3
39.3
31
.9
2.0
13.5
6.
7
77.9
26
.9
27
.2
26
.7
H
ispa
nic
Whi
te2.
3
31
.5
44.6
21
.6
1.8
12.0
5.
4
80.8
9.
5
10
.7
8.
2
As
ian
0.3
12.4
31
.1
56.2
2.
0
16
.5
6.5
75
.1
8.1
7.5
8.8
Blac
k2.
0
40
.5
39.2
18
.3
2.3
10.8
10
.3
76.6
6.
2
5.
9
6.
5
Al
l Oth
er R
aces
21.
6
27
.5
44.3
26
.6
1.8
15.3
4.
1
78.8
3.
2
3.
2
3.
2
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
6.6
50.8
33
.4
9.2
4.4
14.2
9.
6
71.8
11
.2
10
.6
11
.7
So
me
Scho
ol4.
9
53
.7
28.1
13
.3
3.1
15.6
6.
2
75.1
1.
6
1.
6
1.
5
H
igh
Scho
ol6.
8
50
.3
34.3
8.
6
4.
6
14
.0
10.2
71
.2
9.6
9.0
10.2
Som
e C
olle
ge
2.
4
39
.7
42.5
15
.4
3.0
11.9
7.
6
77.5
25
.6
24
.5
26
.7
Te
chni
cal S
choo
l2.
8
46
.8
39.9
10
.5
4.0
11.7
7.
0
77.4
6.
4
7.
0
5.
8
Pa
rtial
Col
lege
2.3
37.3
43
.4
17.0
2.
6
12
.0
7.8
77
.5
19.1
17.4
20.9
Col
lege
Deg
ree
1.
6
27
.7
44.4
26
.3
2.5
13.7
7.
6
76.2
36
.3
37
.7
34
.8
Po
stgr
adua
te
0.
9
18
.0
40.4
40
.7
2.9
17.5
5.
8
73.8
27
.0
27
.2
26
.8
H
ouse
hold
Inco
me
Less
than
$50
,000
6.9
64.1
26
.7
2.3
3.8
9.4
8.0
78
.8
16.9
18.9
14.8
Less
than
$35
,000
10.8
68
.4
20.0
0.
8
4.
0
10
.4
11.9
73
.7
5.5
6.0
4.9
$35,
000
to $
49,9
995.
0
62
.0
29.9
3.
0
3.
7
8.
9
6.
1
81.3
11
.4
12
.9
9.
9
$5
0,00
0 to
$99
,999
1.5
38.8
48
.6
11.1
2.
6
12
.2
7.1
78
.0
37.3
39.4
35.0
$50,
000
to $
74,9
991.
5
45
.5
45.9
7.
1
2.
6
11
.5
7.0
79
.0
18.9
20.6
17.1
$75,
000
to $
99,9
991.
4
32
.0
51.4
15
.2
2.6
13.0
7.
3
77.1
18
.4
18
.8
17
.9
$1
00,0
00 to
$17
4,99
9
1.0
15.2
49
.4
34.4
2.
8
16
.5
8.3
72
.4
29.4
26.6
32.3
$175
,000
or M
ore
0.9
5.7
27.2
66
.2
3.1
20.3
5.
4
71.2
16
.4
15
.0
17
.8
H
ouse
hold
Typ
eC
oupl
e1.
8
26
.7
42.3
29
.2
2.8
15.1
7.
4
74.7
75
.3
74
.1
76
.6
M
arrie
d1.
8
25
.7
42.4
30
.1
3.0
16.0
7.
7
73.2
67
.6
63
.3
72
.1
W
ith P
artn
er1.
8
35
.9
41.4
20
.8
1.0
6.6
4.2
88
.2
7.7
10.8
4.5
Sing
le3.
2
43
.0
39.6
14
.2
3.0
12.1
7.
2
77.7
24
.6
25
.8
23
.4
M
ale
2.8
39.0
41
.4
16.7
2.
9
14
.0
7.7
75
.4
11.2
11.5
10.9
Fem
ale
3.5
46.4
38
.0
12.1
3.
2
10
.5
6.7
79
.5
13.4
14.3
12.5
Mili
tary
Activ
e D
uty
or V
eter
an2.
2
32
.8
42.4
22
.6
2.9
11.1
8.
9
77.1
17
.9
15
.1
20
.8
Ac
tive
Dut
y0.
0
25
.4
50.6
24
.0
0.8
6.3
7.1
85
.7
2.0
2.1
1.8
Vete
ran
2.5
33.7
41
.3
22.5
3.
1
11
.7
9.1
76
.1
15.9
12.9
19.1
No
Milit
ary
Serv
ice
2.2
30.3
41
.4
26.1
3.
0
15
.2
7.0
74
.8
79.1
81.4
76.7
Basi
c Tr
aini
ng3.
2
31
.2
45.3
20
.4
3.9
15.4
6.
4
74.3
5.
1
4.
8
5.
5
N
ever
Ser
ved
2.1
30.2
41
.2
26.5
3.
0
15
.2
7.0
74
.8
74.0
76.6
71.2
Tabl
e 3.
Loa
n Si
ze a
nd M
ortg
age
Term
to M
atur
ity, b
y D
emog
raph
ic, L
oan,
and
Pro
pert
y C
hara
cter
istic
s
(Con
tinue
d on
the
next
pag
e)
(Per
cent
age
Dist
ribut
ion)
Shar
e of
All L
oans
Shar
e of
Purc
hase
sCh
arac
teris
tics
Shar
e of
Refin
ance
sLo
an S
ize1
Mor
tgag
e Te
rm to
Mat
urity
1
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
7
$50,
000
or L
ess
$50,
000
to
$150
,000
$150
,001
to
$300
,000
Mor
e th
an
$300
,000
Less
than
15
Yea
rs15
Year
s15
to 3
0Ye
ars
30 Y
ears
or
Mor
eEm
ploy
men
tFu
ll-Ti
me
1.6
29.1
42
.4
27.0
2.
5
14
.3
7.2
76.1
86
.6
89
.5
83
.5
C
oupl
e, B
oth
1.6
24.1
42
.4
32.0
2.
4
14
.4
7.2
76.0
39
.1
39
.8
38
.3
C
oupl
e, O
ne1.
6
27
.5
43.1
27
.8
2.9
15.9
7.
3
74
.0
28.5
28.4
28.5
Sing
le1.
6
41
.7
41.2
15
.5
2.1
11.8
6.
8
79
.3
19.1
21.3
16.7
Not
Ful
l-Tim
e5.
6
41
.7
36.9
15
.8
5.5
14.5
8.
5
71
.5
13.4
10.4
16.5
Cou
ple,
Nei
ther
3.4
37.5
39
.0
20.1
5.
1
15
.4
8.4
71.1
7.
8
5.
8
9.
8
Si
ngle
8.7
47.6
34
.0
9.7
6.1
13.2
8.
5
72
.1
5.6
4.5
6.7
Cre
dit S
core
1
Low
er th
an 6
20
4.7
37.8
43
.0
14.5
3.
3
7.
0
11
.1
78.6
6.
1
5.
2
7.
1
62
0 to
679
2.7
35.1
42
.8
19.3
1.
4
8.
1
6.
1
84
.3
18.6
19.3
17.8
620
to 6
393.
5
39
.2
44.7
12
.7
2.1
11.1
4.
6
82
.2
4.6
4.6
4.6
640
to 6
591.
7
34
.7
43.4
20
.1
1.4
6.5
5.6
86.4
6.
9
7.
3
6.
5
66
0 to
679
3.1
32.9
41
.0
22.9
1.
0
7.
7
7.
7
83
.7
7.1
7.5
6.6
680
to 7
19
1.
8
34
.2
42.8
21
.2
1.5
12.8
6.
8
78
.8
15.0
15.6
14.4
680
to 6
992.
0
31
.3
44.2
22
.5
1.4
11.9
6.
9
79
.8
7.4
7.8
7.0
700
to 7
191.
5
37
.0
41.4
20
.0
1.6
13.7
6.
7
77
.9
7.6
7.8
7.4
720
or H
ighe
r1.
8
27
.8
40.8
29
.5
3.7
17.4
7.
5
71
.5
60.3
59.9
60.7
720
to 7
391.
8
32
.1
41.6
24
.5
2.0
12.3
6.
6
79
.1
9.9
9.8
10.0
740
or H
ighe
r1.
8
27
.0
40.7
30
.5
4.0
18.4
7.
6
70
.0
50.4
50.0
50.8
Loan
Typ
ePu
rcha
se3
2.4
31.4
42
.3
24.0
1.
3
6.
0
2.
1
90
.5
51.3
100.
0
0.
0
Fi
rst-T
ime
Hom
eow
ner1
1.9
38.2
42
.4
17.4
0.
4
3.
7
1.
7
94
.2
18.6
36.2
0.0
Rep
eat H
omeo
wne
r1.
7
25
.6
43.3
29
.4
1.4
6.4
2.1
90.0
28
.8
56
.1
0.
0
Se
ason
al H
ome
11.0
29
.9
43.3
15
.8
3.3
14.8
6.
5
75
.4
1.3
2.6
0.0
Rel
ativ
e H
ome
14.2
46
.4
36.5
3.
0
3.
8
15
.1
3.8
77.4
0.
6
1.
2
0.
0
In
vest
men
t Hom
e
5.
8
47
.7
27.8
18
.7
6.5
12.9
2.
8
77
.8
2.0
3.8
0.0
Ref
inan
ce3
1.9
30.1
40
.9
27.1
4.
6
23
.1
12.8
59
.5
48.7
0.0
100.
0
H
omeo
wne
r Cas
hout
41.
8
31
.0
41.7
25
.6
4.3
20.9
10
.7
64.1
18
.6
0.
0
38
.3
H
omeo
wne
r Reg
ular
1.9
29.3
40
.0
28.8
4.
8
24
.6
14.6
56
.0
27.5
0.0
56.4
Seas
onal
Hom
e4.
8
12
.5
51.6
31
.2
8.4
23.1
9.
2
59
.3
0.6
0.0
1.2
Rel
ativ
e H
ome
3.3
30.5
66
.2
0.0
0.0
21.2
30
.1
48.7
0.
2
0.
0
0.
5
In
vest
men
t Hom
e
2.
6
38
.3
41.0
18
.1
4.2
23.9
5.
6
66
.3
1.7
0.0
3.6
Prop
erty
Typ
eSi
ngle
-fam
ily D
etac
hed
Hou
se
1.
6
29
.6
42.9
25
.9
2.9
14.4
7.
4
75
.3
84.1
81.1
87.2
Tow
nhou
se, R
ow H
ouse
, or V
illa
0.
9
31
.0
43.2
25
.0
1.2
14.3
5.
4
79
.2
6.1
7.5
4.6
Mob
ile o
r Man
ufac
ture
d H
ome
20
.3
59.2
18
.6
1.9
11.0
15
.2
23.2
50
.6
2.0
2.2
1.8
Two-
to-F
our U
nit D
wel
ling
2.1
32.1
34
.9
31.0
1.
9
7.
1
2.
2
88
.8
2.9
3.2
2.5
Con
do, A
partm
ent H
ouse
, or C
o-op
3.
1
37
.9
32.7
26
.4
0.9
14.7
4.
7
79
.7
4.7
5.6
3.8
Oth
er
58
.5
26.9
11
.3
3.3
40.8
45
.7
6.2
7.3
0.3
0.4
0.1
All
Res
pond
ents
2.2
30.7
41
.6
25.5
2.
9
14
.3
7.3
75.4
10
0.0
100.
0
10
0.0
Tabl
e 3.
Loa
n Si
ze a
nd M
ortg
age
Term
to M
atur
ity, b
y D
emog
raph
ic, L
oan,
Pro
pert
y C
hara
cter
istic
s (C
ontin
ued)
(P
erce
ntag
e Di
strib
utio
n)
4. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prio
r mor
tgag
e am
ount
or i
f a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, the
mor
tgag
e is
cla
ssifi
ed a
s a
cash
out r
efin
ance
.
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Cre
dit s
core
, loa
n si
ze, m
ortg
age
term
to m
atur
ity, a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is
clas
sifie
d as
firs
t-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.
3. M
ortg
ages
to p
urch
ase
a pr
oper
ty a
re c
lass
ified
as
the
"pur
chas
e" lo
an ty
pe a
nd a
ll oth
er m
ortg
ages
are
cla
ssifi
ed a
s th
e "r
efin
ance
" typ
e.
Char
acte
ristic
sLo
an S
ize1
Mor
tgag
e Te
rm to
Mat
urity
1Sh
are
ofRe
finan
ces
Shar
e of
All L
oans
Shar
e of
Purc
hase
s
2. T
he "a
ll oth
er ra
ces"
cat
egor
y in
clud
es re
spon
dent
s w
ho re
porte
d be
ing
Amer
ican
Indi
an/A
lask
a N
ativ
e or
Nat
ive
Haw
aiia
n/Pa
cific
Isla
nder
and
resp
onde
nts
who
repo
rted
mul
tiple
race
cat
egor
ies.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
8
All
620
to 6
3964
0 to
659
660
to 6
79Al
l68
0 to
699
700
to 7
19Al
l72
0 to
739
740
or H
ighe
rR
espo
nden
t Age
35 Y
ears
or Y
oung
er
5.1
19
.1
5.8
6.
9
6.3
15
.0
6.8
8.
2
60.8
13
.5
47.3
26
.7
36 to
45
4.5
18
.2
4.8
7.
6
5.8
16
.3
9.1
7.
2
60.9
8.
7
52.2
25
.0
46 to
55
8.8
21
.6
3.9
7.
9
9.8
15
.1
7.8
7.
4
54.5
9.
2
45.4
22
.1
56 to
65
6.9
16
.3
3.6
6.
0
6.6
15
.0
6.1
9.
0
61.7
8.
6
53.1
16
.1
Old
er th
an 6
5
5.7
15
.1
3.9
4.
3
7.0
11
.4
6.1
5.
3
67.7
7.
0
60.7
10
.1
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
5.1
17
.3
3.8
6.
6
6.9
14
.7
7.4
7.
3
62.8
10
.0
52.8
73
.1
His
pani
c an
d N
on-W
hite
8.9
21
.9
6.7
7.
7
7.5
15
.7
7.4
8.
3
53.4
9.
6
43.9
26
.9
His
pani
c W
hite
9.1
27
.1
9.7
7.
6
9.7
19
.2
9.3
9.
9
44.6
9.
9
34.8
9.
5
As
ian
4.9
9.
2
2.7
2.
8
3.8
10
.5
4.5
6.
0
75.4
10
.1
65.3
8.
1
Bl
ack
15.2
30
.5
7.5
14
.9
8.1
17
.4
7.4
10
.0
36.9
10
.1
26.8
6.
2
Al
l Oth
er R
aces
26.
3
22.5
6.
3
6.5
9.
7
15.6
9.
4
6.1
55
.7
6.4
49
.3
3.2
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
9.
2
25.9
7.
2
8.9
9.
8
18.0
9.
4
8.6
46
.9
11.0
35
.9
11.2
So
me
Scho
ol11
.4
33.4
8.
8
8.2
16
.5
21.1
12
.8
8.2
34
.1
8.7
25
.5
1.6
Hig
h Sc
hool
8.9
24
.7
7.0
9.
0
8.7
17
.5
8.9
8.
7
49.0
11
.4
37.6
9.
6
So
me
Col
lege
9.4
25
.3
6.4
9.
8
9.1
19
.2
9.7
9.
5
46.1
9.
3
36.8
25
.6
Tech
nica
l Sch
ool
10.5
22
.7
2.6
10
.8
9.2
19
.7
8.4
11
.3
47.2
10
.3
36.9
6.
4
Pa
rtial
Col
lege
9.0
26
.2
7.6
9.
4
9.1
19
.0
10.1
8.
9
45.7
9.
0
36.8
19
.1
Col
lege
Deg
ree
4.
7
16.8
3.
9
6.3
6.
6
13.9
6.
3
7.6
64
.7
9.7
55
.0
36.3
Po
stgr
adua
te
3.
8
11.6
2.
8
4.1
4.
7
11.3
6.
0
5.3
73
.4
10.3
63
.1
27.0
H
ouse
hold
Inco
me
Less
than
$50
,000
10.5
24
.4
6.6
9.
0
8.8
17
.2
6.9
10
.2
47.9
12
.6
35.3
16
.9
Less
than
$35
,000
9.6
22
.6
5.7
6.
7
10.2
17
.0
7.1
9.
9
50.8
14
.2
36.5
5.
5
$3
5,00
0 to
$49
,999
11.0
25
.3
7.0
10
.2
8.1
17
.2
6.9
10
.3
46.5
11
.8
34.7
11
.4
$50,
000
to $
99,9
99
6.
5
22.0
5.
4
8.6
7.
9
16.7
8.
5
8.2
54
.8
9.1
45
.7
37.3
$5
0,00
0 to
$74
,999
6.9
23
.4
5.6
9.
3
8.5
15
.9
7.3
8.
6
53.8
9.
7
44.1
18
.9
$75,
000
to $
99,9
996.
1
20.5
5.
2
7.9
7.
3
17.6
9.
8
7.8
55
.8
8.4
47
.4
18.4
$1
00,0
00 to
$17
4,99
9
5.1
16
.1
4.3
5.
4
6.4
14
.4
7.7
6.
7
64.4
9.
9
54.6
29
.4
$175
,000
or M
ore
2.7
9.
3
1.1
3.
5
4.7
10
.0
4.8
5.
1
78.1
9.
0
69.2
16
.4
Hou
seho
ld T
ype
Cou
ple
5.4
18
.7
4.8
6.
8
7.1
15
.0
7.6
7.
4
60.9
9.
9
50.9
75
.3
Mar
ried
5.2
18
.3
4.7
6.
7
6.9
14
.8
7.3
7.
5
61.7
9.
9
51.9
67
.6
With
Par
tner
7.1
22
.9
5.6
7.
8
9.5
16
.8
10.1
6.
7
53.2
10
.7
42.5
7.
7
Si
ngle
8.3
18
.1
4.1
7.
1
7.0
15
.0
6.8
8.
2
58.7
9.
8
48.9
24
.6
Mal
e8.
2
17.5
3.
5
6.9
7.
0
16.0
5.
8
10.2
58
.3
10.4
47
.9
11.2
Fe
mal
e8.
3
18.6
4.
5
7.2
6.
9
14.0
7.
6
6.5
59
.0
9.2
49
.7
13.4
M
ilita
ryAc
tive
Dut
y or
Vet
eran
9.0
27
.7
7.6
9.
4
10.7
16
.3
7.4
8.
9
47.0
7.
7
39.3
17
.9
Activ
e D
uty
5.2
36
.2
17.3
10
.1
8.8
15
.5
7.6
8.
0
43.1
7.
1
36.0
2.
0
Ve
tera
n9.
5
26.6
6.
4
9.3
10
.9
16.4
7.
4
9.1
47
.5
7.7
39
.8
15.9
N
o M
ilitar
y Se
rvic
e5.
5
16.4
3.
9
6.2
6.
3
14.7
7.
4
7.3
63
.3
10.3
53
.1
79.1
Ba
sic
Trai
ning
8.0
26
.4
7.5
8.
8
10.1
17
.6
9.6
8.
0
48.0
9.
5
38.6
5.
1
N
ever
Ser
ved
5.4
15
.7
3.6
6.
0
6.1
14
.5
7.3
7.
3
64.4
10
.3
54.1
74
.0
Cred
it Sc
ore1
Char
acte
ristic
sSh
are
ofAl
l Loa
ns62
0 to
679
680
to 7
1972
0 or
Hig
her
Low
er th
an
620
Tabl
e 4.
Cre
dit S
core
, by
Dem
ogra
phic
, Loa
n, a
nd P
rope
rty
Cha
ract
eris
tics
(Con
tinue
d on
the
next
pag
e)
(Per
cent
age
Dist
ribut
ion)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
9
All
620
to 6
3964
0 to
659
660
to 6
79Al
l68
0 to
699
700
to 7
19Al
l72
0 to
739
740
or H
ighe
rEm
ploy
men
tFu
ll-Ti
me
5.9
18
.5
4.5
7.
1
6.9
15
.6
7.7
7.
8
60.0
10
.3
49.7
86
.6
Cou
ple,
Bot
h5.
4
19.0
5.
1
7.2
6.
8
15.8
8.
6
7.2
59
.7
10.1
49
.6
39.1
C
oupl
e, O
ne5.
2
18.2
4.
2
6.6
7.
4
15.1
7.
0
8.1
61
.4
10.3
51
.1
28.5
Si
ngle
8.0
18
.0
3.9
7.
5
6.6
15
.7
6.9
8.
8
58.3
10
.6
47.8
19
.1
Not
Ful
l-Tim
e7.
0
18.9
5.
0
5.8
8.
1
11.5
5.
6
5.9
62
.6
7.3
55
.3
13.4
C
oupl
e, N
eith
er5.
5
19.2
5.
4
5.8
8.
0
10.8
5.
0
5.8
64
.6
7.5
57
.0
7.8
Sing
le9.
2
18.5
4.
4
5.8
8.
3
12.4
6.
4
6.1
59
.8
7.0
52
.8
5.6
Cre
dit S
core
1
Low
er th
an 6
20
100.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
6.1
620
to 6
79
0.
0
100.
0
24.7
37
.1
38.1
0.
0
0.0
0.
0
0.0
0.
0
0.0
18
.6
620
to 6
390.
0
100.
0
100.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
4.6
640
to 6
590.
0
100.
0
0.0
10
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
6.9
660
to 6
790.
0
100.
0
0.0
0.
0
100.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
7.1
680
to 7
19
0.
0
0.0
0.
0
0.0
0.
0
100.
0
49.4
50
.6
0.0
0.
0
0.0
15
.0
680
to 6
990.
0
0.0
0.
0
0.0
0.
0
100.
0
100.
0
0.0
0.
0
0.0
0.
0
7.4
700
to 7
190.
0
0.0
0.
0
0.0
0.
0
100.
0
0.0
10
0.0
0.
0
0.0
0.
0
7.6
720
or H
ighe
r0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
10
0.0
16
.4
83.6
60
.3
720
to 7
390.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
10
0.0
10
0.0
0.
0
9.9
740
or H
ighe
r0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
10
0.0
0.
0
100.
0
50.4
Lo
an T
ype
Purc
hase
35.
2
19.3
4.
6
7.3
7.
5
15.6
7.
8
7.8
59
.9
9.8
50
.0
51.3
Fi
rst-T
ime
Hom
eow
ner1
7.3
24
.3
6.7
10
.0
7.6
19
.0
9.3
9.
7
49.5
12
.3
37.1
18
.6
Rep
eat H
omeo
wne
r4.
6
18.0
3.
7
6.3
8.
1
14.5
7.
3
7.2
62
.9
8.4
54
.5
28.8
Se
ason
al H
ome
0.0
8.
3
2.1
3.
6
2.5
8.
2
6.9
1.
4
83.5
8.
0
75.5
1.
3
R
elat
ive
Hom
e0.
0
8.1
0.
0
1.9
6.
2
16.3
8.
1
8.2
75
.6
1.1
74
.5
0.6
Inve
stm
ent H
ome
0.0
2.
9
0.6
0.
0
2.3
5.
0
1.6
3.
4
92.1
10
.9
81.3
2.
0
R
efin
ance
37.
1
17.8
4.
6
6.5
6.
6
14.4
7.
0
7.4
60
.7
10.0
50
.8
48.7
H
omeo
wne
r Cas
hout
48.
6
22.1
7.
0
7.6
7.
5
15.3
7.
7
7.7
53
.9
9.3
44
.6
18.6
H
omeo
wne
r Reg
ular
6.4
15
.4
3.4
6.
0
6.1
13
.7
6.6
7.
2
64.5
10
.2
54.2
27
.5
Seas
onal
Hom
e0.
0
11.5
0.
0
3.4
8.
1
19.7
14
.5
5.2
68
.8
6.0
62
.8
0.6
Rel
ativ
e H
ome
0.0
3.
3
3.3
0.
0
0.0
17
.7
17.7
0.
0
79.0
11
.0
68.1
0.
2
In
vest
men
t Hom
e
6.
1
12.4
0.
0
5.3
7.
1
12.5
3.
0
9.5
69
.0
14.1
54
.9
1.7
Prop
erty
Typ
eSi
ngle
-fam
ily D
etac
hed
Hou
se
6.
2
19.9
4.
8
7.6
7.
5
15.4
7.
5
7.9
58
.5
9.8
48
.8
84.1
To
wnh
ouse
, Row
Hou
se, o
r Villa
5.3
13
.3
3.8
3.
8
5.7
13
.6
7.5
6.
1
67.8
11
.5
56.2
6.
1
M
obile
or M
anuf
actu
red
Hom
e
16.5
22
.0
8.8
5.
1
8.1
13
.9
10.0
3.
9
47.6
8.
4
39.2
2.
0
Tw
o-to
-Fou
r Uni
t Dw
ellin
g
4.
3
8.9
1.
5
4.4
3.
0
17.2
6.
8
10.4
69
.6
9.1
60
.5
2.9
Con
do, A
partm
ent H
ouse
, or C
o-op
1.
4
7.8
2.
4
0.9
4.
6
10.5
6.
3
4.3
80
.3
9.6
70
.7
4.7
Oth
er
15
.2
7.1
0.
0
7.1
0.
0
0.0
0.
0
0.0
77
.7
27.5
50
.2
0.3
All
Res
pond
ents
6.1
18
.6
4.6
6.
9
7.1
15
.0
7.4
7.
6
60.3
9.
9
50.4
10
0.0
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Cre
dit s
core
, loa
n si
ze, m
ortg
age
term
to m
atur
ity, a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is
clas
sifie
d as
firs
t-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.
3. M
ortg
ages
to p
urch
ase
a pr
oper
ty a
re c
lass
ified
as
the
"pur
chas
e" lo
an ty
pe a
nd a
ll oth
er m
ortg
ages
are
cla
ssifi
ed a
s th
e "r
efin
ance
" typ
e.4.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
ior m
ortg
age
amou
nt o
r if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, t
he m
ortg
age
is c
lass
ified
as
a ca
shou
t ref
inan
ce.
(Per
cent
age
Dist
ribut
ion)
2. T
he "a
ll oth
er ra
ces"
cat
egor
y in
clud
es re
spon
dent
s w
ho re
porte
d be
ing
Amer
ican
Indi
an/A
lask
a N
ativ
e or
Nat
ive
Haw
aiia
n/Pa
cific
Isla
nder
and
resp
onde
nts
who
repo
rted
mul
tiple
race
cat
egor
ies.
Tabl
e 4.
Cre
dit S
core
, by
Dem
ogra
phic
, Loa
n, a
nd P
rope
rty
Cha
ract
eris
tics
(Con
tinue
d)
Char
acte
ristic
sCr
edit
Scor
e1Sh
are
ofAl
l Loa
nsLo
wer
than
62
062
0 to
679
680
to 7
1972
0 or
Hig
her
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
10
Sing
le-F
amily
Tow
nhou
seM
anuf
actu
red
Two-
to-F
our U
nit
Cond
oO
ther
Res
pond
ent A
ge35
Yea
rs o
r You
nger
82.5
6.
9
1.7
3.
5
5.3
0.
2
26.7
36
to 4
586
.9
5.7
1.
4
1.9
3.
6
0.5
25
.0
46 to
55
86.1
5.
7
1.6
2.
0
4.4
0.
3
22.1
56
to 6
583
.3
5.5
2.
7
3.3
5.
2
0.0
16
.1
Old
er th
an 6
5
77.8
6.
7
4.4
4.
6
6.1
0.
4
10.1
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te84
.7
5.4
2.
4
2.9
4.
3
0.4
73
.1
His
pani
c an
d N
on-W
hite
82.3
8.
0
1.0
2.
7
5.9
0.
0
26.9
H
ispa
nic
Whi
te84
.8
6.2
1.
5
2.9
4.
7
0.0
9.
5
As
ian
77.1
11
.5
0.5
2.
0
9.1
0.
0
8.1
Blac
k84
.8
8.0
0.
5
2.9
3.
8
0.0
6.
2
Al
l Oth
er R
aces
183
.8
4.8
1.
7
3.4
6.
0
0.4
3.
2
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
82.8
5.
0
5.9
2.
1
4.0
0.
2
11.2
So
me
Scho
ol85
.9
5.1
3.
3
1.2
3.
9
0.6
1.
6
H
igh
Scho
ol82
.3
5.0
6.
3
2.3
4.
0
0.1
9.
6
So
me
Col
lege
87.2
4.
1
2.5
3.
1
2.9
0.
2
25.6
Te
chni
cal S
choo
l85
.5
5.4
3.
0
4.0
1.
8
0.4
6.
4
Pa
rtial
Col
lege
87.8
3.
7
2.3
2.
8
3.3
0.
1
19.1
C
olle
ge D
egre
e
83.8
6.
6
1.5
2.
6
5.1
0.
4
36.3
Po
stgr
adua
te
82
.0
7.7
0.
6
3.3
6.
2
0.3
27
.0
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
81
.1
6.1
5.
0
2.9
4.
7
0.1
16
.9
Less
than
$35
,000
77.9
5.
8
7.7
3.
0
5.4
0.
2
5.5
$35,
000
to $
49,9
9982
.7
6.3
3.
7
2.8
4.
4
0.1
11
.4
$50,
000
to $
99,9
99
84
.1
5.6
2.
7
3.0
4.
4
0.2
37
.3
$50,
000
to $
74,9
9984
.1
4.7
3.
0
3.4
4.
6
0.2
18
.9
$75,
000
to $
99,9
9984
.1
6.5
2.
4
2.7
4.
1
0.2
18
.4
$100
,000
to $
174,
999
86
.3
6.4
0.
5
2.1
4.
3
0.5
29
.4
$175
,000
or M
ore
83.0
6.
7
0.1
3.
7
6.4
0.
2
16.4
H
ouse
hold
Typ
eC
oupl
e86
.9
4.9
2.
0
2.5
3.
4
0.3
75
.3
Mar
ried
87.5
4.
7
1.9
2.
3
3.3
0.
3
67.6
W
ith P
artn
er81
.7
6.0
3.
1
4.4
4.
8
0.0
7.
7
Si
ngle
75.6
9.
8
2.0
3.
8
8.7
0.
1
24.6
M
ale
78.6
6.
4
2.7
3.
6
8.6
0.
1
11.2
Fe
mal
e73
.0
12.7
1.
5
4.0
8.
7
0.1
13
.4
Mili
tary
Activ
e D
uty
or V
eter
an87
.9
4.6
2.
6
1.7
3.
1
0.2
17
.9
Activ
e D
uty
89.7
1.
8
0.8
1.
8
6.0
0.
0
2.0
Vete
ran
87.6
4.
9
2.8
1.
6
2.8
0.
2
15.9
N
o M
ilitar
y Se
rvic
e83
.2
6.4
1.
9
3.1
5.
0
0.3
79
.1
Basi
c Tr
aini
ng90
.3
2.0
2.
5
2.9
2.
0
0.3
5.
1
N
ever
Ser
ved
82.7
6.
7
1.9
3.
1
5.2
0.
3
74.0
Tabl
e 5.
Pro
pert
y Ty
pe, b
y D
emog
raph
ic a
nd L
oan
Cha
ract
eris
tics
(Per
cent
age
Dist
ribut
ion)
Char
acte
ristic
sPr
oper
ty T
ype
Shar
e of
All L
oans
(Con
tinue
d on
the
next
pag
e)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
11
Sing
le-F
amily
Tow
nhou
seM
anuf
actu
red
Two-
to-F
our U
nit
Cond
oO
ther
Empl
oym
ent
Full-
Tim
e84
.5
6.0
1.
7
2.8
4.
7
0.2
86
.6
Cou
ple,
Bot
h86
.9
5.6
1.
5
2.2
3.
5
0.4
39
.1
Cou
ple,
One
87.5
3.
9
2.1
2.
9
3.4
0.
1
28.5
Si
ngle
75.1
10
.1
1.6
3.
8
9.2
0.
2
19.1
N
ot F
ull-T
ime
81.2
6.
5
4.0
3.
4
4.8
0.
1
13.4
C
oupl
e, N
eith
er84
.2
4.9
4.
2
3.1
3.
4
0.2
7.
8
Si
ngle
77.1
8.
7
3.6
3.
8
6.8
0.
0
5.6
Cre
dit S
core
2
Low
er th
an 6
20
85.6
5.
3
5.4
2.
0
1.1
0.
7
6.1
620
to 6
79
89
.8
4.4
2.
4
1.4
2.
0
0.1
18
.6
620
to 6
3987
.8
5.0
3.
8
0.9
2.
4
0.0
4.
6
64
0 to
659
92.5
3.
3
1.5
1.
8
0.6
0.
3
6.9
660
to 6
7988
.5
4.9
2.
3
1.2
3.
0
0.0
7.
1
68
0 to
719
86.0
5.
5
1.9
3.
3
3.3
0.
0
15.0
68
0 to
699
84.5
6.
2
2.7
2.
6
4.0
0.
0
7.4
700
to 7
1987
.5
4.9
1.
0
3.9
2.
6
0.0
7.
6
72
0 or
Hig
her
81.6
6.
8
1.6
3.
3
6.3
0.
3
60.3
72
0 to
739
83.2
7.
1
1.7
2.
6
4.6
0.
8
9.9
740
or H
ighe
r81
.3
6.8
1.
6
3.4
6.
6
0.3
50
.4
Loan
Typ
ePu
rcha
se3
81.1
7.
5
2.2
3.
2
5.6
0.
4
51.3
Fi
rst-T
ime
Hom
eow
ner2
81.2
7.
5
2.3
2.
5
6.5
0.
0
18.6
R
epea
t Hom
eow
ner
84.7
6.
7
1.9
2.
1
4.2
0.
5
28.8
Se
ason
al H
ome
62.9
16
.1
5.3
2.
7
12.4
0.
6
1.3
Rel
ativ
e H
ome
41.8
15
.4
8.2
19
.4
12.6
2.
6
0.6
Inve
stm
ent H
ome
52.2
10
.5
1.7
19
.9
12.4
3.
4
2.0
Ref
inan
ce3
87.2
4.
6
1.8
2.
5
3.8
0.
1
48.7
H
omeo
wne
r Cas
hout
488
.9
3.1
2.
4
2.7
2.
8
0.0
18
.6
Hom
eow
ner R
egul
ar87
.5
5.4
1.
5
1.8
3.
7
0.1
27
.5
Seas
onal
Hom
e81
.3
13.5
1.
3
2.6
1.
4
0.0
0.
6
R
elat
ive
Hom
e72
.4
5.3
3.
8
0.0
18
.4
0.0
0.
2
In
vest
men
t Hom
e
67
.8
4.6
0.
0
13.3
13
.2
1.2
1.
7
Pr
oper
ty T
ype
Sing
le-fa
mily
Det
ache
d H
ouse
100.
0
0.0
0.
0
0.0
0.
0
0.0
84
.1
Tow
nhou
se, R
ow H
ouse
, or V
illa
0.
0
100.
0
0.0
0.
0
0.0
0.
0
6.1
Mob
ile o
r Man
ufac
ture
d H
ome
0.
0
0.0
10
0.0
0.
0
0.0
0.
0
2.0
Two-
to-F
our U
nit D
wel
ling
0.0
0.
0
0.0
10
0.0
0.
0
0.0
2.
9
C
ondo
, Apa
rtmen
t Hou
se, o
r Co-
op
0.0
0.
0
0.0
0.
0
100.
0
0.0
4.
7
O
ther
0.0
0.
0
0.0
0.
0
0.0
10
0.0
0.
3
A
ll R
espo
nden
ts84
.1
6.1
2.
0
2.9
4.
7
0.3
10
0.0
Not
es: 1
. The
"all o
ther
race
s" c
ateg
ory
incl
udes
resp
onde
nts
who
repo
rted
bein
g Am
eric
an In
dian
/Ala
ska
Nat
ive
or N
ativ
e H
awai
ian/
Paci
fic Is
land
er a
nd re
spon
dent
s w
ho re
porte
d m
ultip
le ra
ce c
ateg
orie
s.
3. M
ortg
ages
to p
urch
ase
a pr
oper
ty a
re c
lass
ified
as
the
"pur
chas
e" lo
an ty
pe a
nd a
ll oth
er m
ortg
ages
are
cla
ssifi
ed a
s th
e "r
efin
ance
" typ
e.4.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
ior m
ortg
age
amou
nt o
r if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, t
he m
ortg
age
is c
lass
ified
as
a ca
shou
t ref
inan
ce.
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Char
acte
ristic
sPr
oper
ty T
ype
Shar
e of
All L
oans
Tabl
e 5.
Pro
pert
y Ty
pe, b
y D
emog
raph
ic a
nd L
oan
Cha
ract
eris
tics
(Con
tinue
d)(P
erce
ntag
e Di
strib
utio
n)
2. C
redi
t sco
re, l
oan
size
, mor
tgag
e te
rm to
mat
urity
, and
firs
t-tim
e ho
meb
uyer
sta
tus
are
asse
mbl
ed fr
om th
e N
atio
nal M
ortg
age
Dat
abas
e. C
redi
t sco
re fr
om V
anta
ge ra
nges
from
300
to 8
50. A
hom
ebuy
er is
cl
assi
fied
as fi
rst-t
ime
if ne
ither
the
resp
onde
nt n
or th
e sp
ouse
is o
lder
than
54
year
s in
age
and
ther
e is
no
evid
ence
of a
prio
r mor
tgag
e in
the
cred
it fil
es.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
12
Char
acte
ristic
sDi
vorc
ed o
r Se
para
ted
Mar
ried
or H
ad
a Pa
rtne
rDe
ath
in
Hous
ehol
dAd
ditio
n to
Ho
useh
old
Left
Hous
ehol
dDi
sabi
lity
or
Illne
ssDi
sast
er to
Ho
me
Disa
ster
to
Wor
k or
Job
Mov
ed L
ess
than
50
Mile
sM
oved
50
Mile
s or
Mor
eLo
an T
ype
Purc
hase
18.
3
18.4
3.
1
18.0
6.
0
6.5
1.
2
1.7
48
.0
23.0
Fi
rst-T
ime
Hom
eow
ner2
6.4
29
.4
3.2
20
.5
2.6
5.
3
0.6
1.
7
53.4
20
.5
Rep
eat H
omeo
wne
r10
.2
12.4
3.
1
17.7
7.
3
7.1
1.
5
1.8
50
.0
26.7
N
on-O
ccup
ant O
wne
r3.
0
9.8
2.
8
8.5
13
.6
7.
2
2.1
0.
3
8.3
8.
5
Ref
inan
ce1
7.4
7.
7
4.4
13
.5
8.9
9.
8
2.3
1.
9
10.2
5.
6
Hom
eow
ner C
asho
ut3
9.7
7.
7
5.1
13
.9
10.2
11.9
2.
4
2.0
8.
6
3.7
H
omeo
wne
r Reg
ular
5.7
7.
6
3.9
13
.7
7.9
8.
5
1.9
1.
7
11.0
6.
3
Non
-Occ
upan
t Ow
ner
8.3
7.
8
4.4
9.
7
9.5
9.
5
4.3
2.
9
14.3
11
.8
Loan
Siz
e$5
0,00
0 or
Les
s4.
5
8.9
8.
5
2.8
4.
1
11.9
4.
3
2.5
17
.4
10.2
$5
0,00
1 to
$15
0,00
09.
7
12.2
5.
3
12.1
7.
2
9.9
1.
8
1.6
27
.1
9.9
$1
50,0
01 to
$30
0,00
08.
2
13.8
3.
4
16.2
8.
1
8.1
1.
9
2.3
30
.3
16.1
M
ore
than
$30
0,00
05.
2
13.6
1.
9
20.9
7.
0
5.6
1.
1
1.0
32
.8
17.9
C
redi
t Sco
re2
Low
er th
an 6
209.
5
9.7
4.
5
10.8
9.
3
15.1
2.
5
1.1
24
.6
10.4
62
0 to
679
9.
7
17.5
4.
6
14.9
9.
0
10.8
1.
8
2.5
28
.7
13.1
68
0 to
719
8.
8
13.8
4.
1
16.9
8.
5
8.6
1.
4
2.2
32
.0
13.3
72
0 or
Hig
her
6.9
12
.0
3.3
16
.4
6.5
6.
4
1.7
1.
5
29.9
15
.7
Res
pond
ent A
ge35
Yea
rs o
r You
nger
5.1
27
.5
2.8
28
.9
2.0
3.
9
1.6
1.
3
47.0
19
.2
36 to
45
10.1
11
.1
1.8
19
.8
6.8
5.
7
1.3
1.
7
30.6
12
.9
46 to
55
10.8
8.
8
3.1
7.
8
12.4
7.5
1.
8
2.1
22
.1
12.8
56
to 6
57.
8
5.1
6.
0
5.6
12
.8
13
.7
2.1
2.
8
18.4
10
.9
Old
er th
an 6
5
3.2
2.
8
8.8
5.
5
4.0
17
.7
2.1
0.
9
15.6
15
.8
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
8.0
13
.0
3.8
15
.6
7.9
8.
1
1.9
1.
7
30.8
14
.6
His
pani
c an
d N
on-W
hite
7.3
13
.6
3.5
16
.5
6.2
8.
1
1.3
2.
0
26.6
14
.3
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
7.
9
8.2
6.
7
11.6
7.
8
13.1
1.
0
2.3
24
.3
8.1
So
me
Col
lege
9.2
12
.2
4.4
14
.2
7.6
11
.4
2.3
2.
2
26.1
11
.6
Col
lege
Deg
ree
7.
6
15.5
3.
1
16.5
6.
8
6.4
1.
4
1.2
32
.2
15.5
Po
stgr
adua
te
6.
9
13.0
2.
8
18.2
7.
9
5.3
2.
0
1.9
31
.8
18.6
H
ouse
hold
Inco
me
Less
than
$50
,000
11.6
10
.4
7.5
12
.6
4.8
13
.8
1.9
2.
7
29.2
12
.1
$50,
000
to $
99,9
99
9.
0
13.4
4.
4
16.6
6.
7
9.3
1.
9
1.9
31
.8
13.6
$1
00,0
00 to
$17
4,99
9
7.0
14
.2
2.3
15
.3
9.5
6.
1
1.6
1.
3
27.9
14
.9
$175
,000
or M
ore
2.9
13
.6
1.0
18
.4
8.1
3.
3
1.5
1.
5
28.2
18
.5
Hou
seho
ld T
ype
Cou
ple
3.1
16
.4
2.4
18
.9
7.6
8.
5
2.0
2.
1
29.7
15
.3
Sing
le
22
.3
3.3
7.
7
6.5
6.
8
6.9
1.
0
0.9
29
.5
12.3
A
ll R
espo
nden
ts7.
8
13.2
3.
7
15.8
7.
4
8.1
1.
7
1.8
29
.6
14.5
Tabl
e 6.
Hou
seho
ld L
ife E
vent
s, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all o
ther
mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.
(Per
cent
Who
Exp
erie
nced
Eac
h Ev
ent i
n th
e La
st C
oupl
e of
Yea
rs)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
13
Mortgage Features The survey asked respondents to assess their prior knowledge about getting a mortgage and familiarity with basic mortgage loan terms. The results are reflected in Table 7. At most, 12 percent of respondents reported that they were not previously familiar with different mortgage features: the mortgage process (12 percent), the types of mortgages available (11 percent), down payment (9 percent), income requirements (8 percent), interest rate levels (6 percent), or the type of credit history that was expected (3 percent). First-time homebuyers were less likely to indicate that they were previously familiar with the process of taking out a mortgage, the types of mortgages, or interest rates available compared to borrowers who had bought a home previously and to those who refinanced. First-time homebuyers were also more likely to indicate that they were not previously familiar with the income, credit history, down payment, or closing costs required for a mortgage. Generally, younger borrowers and borrowers with lower credit scores or income reported that they had less prior information about the process and qualification requirements for obtaining a mortgage. For example, 25 percent of borrowers 35 years old or younger indicated that they were not familiar with the process of taking out a mortgage. Eighteen percent of households with less than $50,000 in income indicated they were not familiar with the down payment required to purchase a house, and 20 percent indicated they were not familiar with the amount of money needed at closing. Twenty percent of borrowers with credit scores below 620 reported that they were not familiar with the types of mortgages available. The share of borrowers who reported they were not previously familiar with a mortgage feature generally declined as loan amount, education, credit score, and income increased. The number of persons who reported they were unfamiliar with the process was also comparatively higher among Hispanics, non-white borrowers, and single-headed households. Mortgage Process The percentage of borrowers concerned about qualifying for a mortgage also declined as loan amount, education, credit score, and income increased. For example, 12 percent of non-Hispanic white borrowers reported that they were very concerned with qualifying compared to 26 percent of Hispanic or non-white borrowers. The differences in the percentages of borrowers concerned about qualifying for a mortgage was most noticeable based on credit score: 35 percent of those with scores below 620 were very concerned about qualifying, while 9 percent of borrowers with scores of at least 720 reported that they were very concerned. More than 69 percent of borrowers who refinanced their mortgage or looked for an investment property indicated that they had a firm idea about the type of mortgage they wanted. In contrast, only 30 percent of first-time homebuyers indicated that they had a firm idea of the mortgage they wanted, 18 percent of first-time homebuyers indicated they had little idea of what type of mortgage they wanted, and 52 percent reported they had some idea. The percentage of borrowers who indicated they had a firm idea about the type of mortgage they wanted increased with age and credit score.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
14
Very
Som
ewha
tN
ot a
t All
Firm
Idea
Som
e Id
eaLi
ttle
Idea
Loan
Typ
eP
urch
ase
110
.4
15.1
18
.5
9.3
10.4
3.
3
16
.3
19.5
33.4
47.1
50.1
40.1
9.8
Firs
t-Tim
e H
omeo
wne
r221
.0
26.1
39
.4
16.8
19
.4
5.7
29.7
26
.9
42
.7
30
.4
29
.6
52
.4
18
.0
R
epea
t Hom
eow
ner
4.2
8.7
6.7
5.1
5.1
1.6
8.7
16.2
29.0
54.8
60.7
33.9
5.3
Non
-Occ
upan
t Ow
ner
5.5
10.0
6.
4
4.
3
6.
3
4.
4
8.
5
8.
5
22
.1
69
.3
69
.4
26
.5
4.
1
R
efin
ance
12.
2
7.
5
4.
3
8.
6
6.
4
1.
7
8.
2
12
.3
24
.8
62
.9
69
.1
28
.5
2.
5
H
omeo
wne
r Cas
hout
32.
5
8.
0
3.
9
9.
8
6.
6
1.
4
7.
7
15
.3
28
.8
55
.9
68
.5
29
.2
2.
3
H
omeo
wne
r Reg
ular
2.1
7.2
4.7
7.7
6.4
1.7
8.6
10.9
22.0
67.0
68.6
28.7
2.7
Non
-Occ
upan
t Ow
ner
1.0
6.3
1.8
9.1
4.9
3.2
8.4
5.7
24.3
69.9
77.4
20.5
2.1
Loan
Siz
e$5
0,00
0 or
Les
s13
.2
20.8
15
.5
11.9
14
.0
5.9
13.7
17
.6
34
.9
47
.6
46
.7
44
.1
9.
2
$5
0,00
1 to
$15
0,00
08.
9
15
.8
16.2
12
.4
12.1
3.
8
15
.6
20.1
31.6
48.3
55.5
36.3
8.3
$150
,001
to $
300,
000
6.0
10.6
10
.1
8.8
7.5
2.1
12.4
15
.1
29
.5
55
.4
59
.3
34
.8
5.
9
M
ore
than
$30
0,00
03.
4
6.
6
8.
1
4.
8
5.
1
1.
5
8.
4
12
.4
25
.4
62
.2
65
.1
30
.8
4.
0
C
redi
t Sco
re2
Low
er th
an 6
2012
.6
19.6
16
.8
12.5
10
.7
3.4
20.1
35
.4
40
.2
24
.4
44
.9
45
.3
9.
7
62
0 to
679
11.
4
14
.7
15.4
14
.4
12.0
3.
8
17
.6
30.0
39.3
30.7
49.4
40.8
9.8
680
to 7
19
6.7
13.2
12
.4
8.9
9.5
2.5
15.4
19
.7
37
.3
43
.0
57
.2
35
.4
7.
4
72
0 or
Hig
her
4.1
9.1
9.7
6.9
6.9
2.1
9.2
8.8
23.0
68.3
64.4
31.1
4.5
Res
pond
ent A
ge35
Yea
rs o
r You
nger
12
.5
17.2
24
.6
10.7
12
.6
3.2
20.6
18
.7
33
.2
48
.0
44
.3
44
.1
11
.6
36
to 4
55.
2
9.
3
7.
4
7.
0
7.
1
2.
1
9.
4
16
.1
29
.4
54
.5
58
.9
35
.5
5.
6
46
to 5
53.
7
9.
0
5.
9
7.
3
5.
8
1.
4
9.
1
17
.9
26
.9
55
.2
64
.4
32
.1
3.
5
56
to 6
53.
3
8.
7
6.
3
8.
7
6.
6
2.
6
7.
7
12
.2
26
.7
61
.1
70
.7
25
.6
3.
6
O
lder
than
65
3.
9
10
.7
8.5
13.2
9.
8
4.
2
12
.5
10.3
27.5
62.3
71.0
25.1
3.8
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
5.6
10.2
10
.7
7.9
7.6
2.4
11.6
12
.4
27
.7
59
.9
60
.6
33
.6
5.
8
H
ispa
nic
and
Non
-Whi
te8.
4
14
.8
14.0
11
.7
10.7
2.
9
14
.5
25.7
33.3
41.0
55.9
36.8
7.3
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
10.2
19
.4
16.6
15
.5
11.2
3.
3
16
.2
26.7
33.7
39.7
52.3
38.4
9.3
Som
e C
olle
ge
7.7
13
.5
12.0
12
.6
9.7
3.5
14.9
20
.0
33
.1
46
.9
57
.2
36
.5
6.
2
C
olle
ge D
egre
e
5
.7
9.9
11.2
7.
1
7.
7
2.
1
11
.1
13.8
27.8
58.4
59.6
34.4
6.0
Post
grad
uate
4.6
8.2
9.6
5.3
7.1
1.8
10.1
10
.8
25
.5
63
.7
63
.8
30
.8
5.
3
H
ouse
hold
Inco
me
Less
than
$50
,000
14
.0
21.1
21
.1
18.1
15
.8
5.5
20.3
29
.6
36
.9
33
.5
48
.2
41
.2
10
.7
$5
0,00
0 to
$99
,999
6.8
13.0
13
.4
10.4
9.
8
2.
9
14
.7
19.0
32.6
48.4
57.0
35.8
7.2
$100
,000
to $
174,
999
4.
2
7.
7
7.
2
5.
0
4.
8
1.
3
8.
6
10
.8
26
.0
63
.2
61
.4
34
.0
4.
6
$1
75,0
00 o
r Mor
e
1.4
4.
4
5.
4
3.
0
4.
1
1.
0
5.
6
4.
4
19
.4
76
.2
72
.5
25
.1
2.
4
H
ouse
hold
Typ
eC
oupl
e5.
4
10
.2
10.1
7.
7
7.
4
2.
1
11
.0
15.5
27.7
56.8
61.1
33.7
5.2
Sing
le
9.
4
14
.8
16.2
12
.7
11.8
4.
0
16
.6
17.7
33.8
48.5
54.1
36.6
9.4
All
Res
pond
ents
6.4
11.4
11
.6
8.9
8.4
2.5
12.4
16
.0
29
.2
54
.8
59
.3
34
.4
6.
2
Con
cern
ed A
bout
Qua
lifyi
ng(P
erce
ntag
e D
istr
ibut
ion)
Cha
ract
eris
tics
Tabl
e 7.
Prio
r Mor
tgag
e K
now
ledg
e, Id
ea a
bout
Mor
tage
Wan
ted,
and
Con
cern
abo
ut Q
ualif
ying
, by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
Idea
Abo
ut th
e M
ortg
age
Wan
ted
Prio
r Kno
wle
dge
(Per
cent
Not
at A
ll Fa
mili
ar w
ith E
ach
Feat
ure)
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Inte
rest
Rat
es
Avai
labl
e
Mor
tgag
e Ty
pes
Avai
labl
e
Proc
ess
of
Taki
ng O
ut
Mor
tgag
e
Dow
n Pa
ymen
t to
Qua
lify
Inco
me
Nee
ded
to
Qua
lify
Cre
dit
His
tory
or
Scor
e
Mon
ey
Nee
ded
at
Clo
sing
(Per
cent
age
Dis
trib
utio
n)
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all
othe
r mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
15
Ability to Explain Mortgage Process Table 8 reflects that by the end of the process of obtaining a mortgage, 55 percent of first-time homebuyers and 48 percent of those who refinanced a mortgage felt they were somewhat able to explain the process of taking out a mortgage. Forty percent of first-time homebuyers and 47 percent of those who refinanced felt very confident in their ability to explain the mortgage process. For borrowers with $175,000 or more in income, more than 6 out of 10 were very confident in their ability to explain the process of taking out a mortgage, and fewer than 4 out of 10 borrowers with less than $50,000 in income were very confident in their ability to explain the process. Eight percent of households with incomes less than $50,000 and 9 percent of households in which the respondent had a high school education or less were not confident about their ability to explain the process of taking out a mortgage. Forty-six percent of all respondents reported they would have a difficult time explaining the difference between a prime and a subprime loan. The share of borrowers who were not confident in their ability to explain prime versus subprime loans exceeded half of respondents among first-time homebuyers, borrowers 35 years old or younger, borrowers taking out loans of $150,000 or less, borrowers with household income of less than $100,000, and borrowers with some college or less education. Overall, more than one-quarter of borrowers reported that they could not explain amortization or the difference between the interest rate and the Annual Percentage Rate (APR) on a loan. The percentages of respondents who reported that they were not able to explain these mortgage details were highest among borrowers with a high school diploma or less education, first-time homebuyers, those taking out loans of $50,000 or less, those with household incomes below $50,000, and single households. 5. Selecting a Mortgage: Mortgage Broker versus Mortgage Lender The survey asked borrowers about how they chose their mortgage originator, the number of lenders they considered, and important factors in choosing the lender and the mortgage product. Borrowers reported that they consider many features when selecting a mortgage. Table 9 reflects that about 61 percent of all respondents and 67 percent of respondents who refinanced went to a lender for their mortgage rather than to a mortgage broker. For the smallest loan sizes of $50,000 or less, 88 percent of borrowers went to the lender directly. First-time homebuyers were somewhat more likely than other borrowers to use a broker, and the percentage of them who used a broker increased with loan size. Borrowers initiated contact with the lender or broker 69 percent of the time, lenders initiated contact 13 percent of the time, and a third party initiated contact for 18 percent of respondents. Lenders initiated contact for 19 percent of respondents who refinanced compared to 7 percent of homebuyers. The share of loans for which a third party initiated contact was nearly five times higher for home purchase loans than for refinances (29 percent and 6 percent, respectively). Eight percent of all respondents used housing counselors or completed courses on home ownership, and the share who received housing counseling was higher for first-time homebuyers (23 percent), those with household income less than $50,000 (18 percent), those 35 years old or younger (13 percent), and those with credit scores lower than 620 (10 percent).
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
16
Very
Som
ewha
tNo
t at A
llLo
an T
ype
Purc
hase
147
.1
48.9
4.
0
7.8
50.5
29.1
33.1
7.0
Firs
t-Tim
e H
omeo
wne
r239
.8
54.5
5.
6
10.9
63.4
37.2
45.9
10.0
Rep
eat H
omeo
wne
r49
.7
47.6
2.
7
5.6
43.8
24.7
26.3
4.8
Non
-Occ
upan
t Ow
ner
62.1
31
.9
6.1
9.
5
39
.3
22
.8
22
.7
8.
3
R
efin
ance
147
.4
48.4
4.
2
4.9
41.3
24.1
26.6
6.2
Hom
eow
ner C
asho
ut3
44.2
51
.3
4.6
5.
3
43
.9
27
.3
27
.1
6.
9
H
omeo
wne
r Reg
ular
48.8
47
.1
4.1
4.
6
40
.1
22
.3
27
.3
5.
7
N
on-O
ccup
ant O
wne
r56
.9
40.6
2.
5
5.1
35.6
19.3
15.5
6.0
Loan
Siz
e$5
0,00
0 or
Les
s42
.5
47.2
10
.3
13
.8
61
.5
34
.6
45
.4
13
.8
$5
0,00
1 to
$15
0,00
041
.7
53.3
5.
0
8.0
51.3
29.8
36.6
7.2
$150
,001
to $
300,
000
46.1
49
.8
4.1
6.
7
48
.5
27
.8
30
.2
6.
5
M
ore
than
$30
0,00
056
.2
41.2
2.
6
3.4
34.2
20.3
20.2
5.3
Cre
dit S
core
2
Low
er th
an 6
2036
.4
57.1
6.
4
9.2
46.6
32.2
39.9
10.0
620
to 6
79
42.1
52
.0
5.9
7.
3
50
.8
30
.0
35
.6
6.
1
68
0 to
719
44
.2
51.3
4.
5
7.1
49.4
29.4
34.5
7.7
720
or H
ighe
r50
.7
46.1
3.
2
5.7
43.6
24.4
26.0
6.1
Res
pond
ent A
ge35
Yea
rs o
r You
nger
44.4
52
.3
3.4
7.
7
58
.0
33
.0
38
.7
7.
4
36
to 4
548
.7
47.5
3.
8
5.8
44.3
26.4
27.2
6.6
46 to
55
49.3
46
.6
4.1
5.
8
42
.6
24
.7
26
.9
6.
2
56
to 6
549
.1
46.7
4.
2
5.5
38.1
22.4
25.0
4.6
Old
er th
an 6
5
44.1
49
.4
6.6
7.
3
38
.7
21
.3
28
.0
8.
5
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
47
.4
48.9
3.
7
5.6
44.6
27.1
28.7
5.8
His
pani
c an
d N
on-W
hite
46.9
47
.9
5.2
8.
6
49
.8
25
.4
33
.2
8.
8
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
35.5
55
.7
8.8
12
.4
56
.0
33
.3
44
.7
12
.2
So
me
Col
lege
42.1
53
.1
4.8
6.
8
50
.7
27
.4
34
.3
6.
4
C
olle
ge D
egre
e
49.6
47
.2
3.2
5.
4
44
.9
25
.5
27
.4
5.
1
Po
stgr
adua
te
53
.8
43.4
2.
8
4.9
39.0
24.8
23.0
6.4
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
33
.0
58.8
8.
2
13.7
60.4
37.0
46.3
11.8
$50,
000
to $
99,9
99
44
.3
50.9
4.
8
7.0
52.7
29.6
34.3
6.9
$100
,000
to $
174,
999
50
.2
47.4
2.
4
3.4
39.8
22.8
24.9
5.2
$175
,000
or M
ore
63.4
35
.2
1.4
2.
8
27
.2
16
.2
12
.3
2.
8
H
ouse
hold
Typ
eC
oupl
e49
.0
47.1
3.
9
5.8
44.6
24.8
28.5
6.0
Sing
le
42
.1
53.2
4.
7
8.3
50.3
32.3
34.4
8.3
All
Res
pond
ents
47.3
48
.6
4.1
6.
4
46
.0
26
.7
29
.9
6.
6
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.3.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
evio
us m
ortg
age
or if
a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, it i
s cl
assi
fied
as a
cas
hout
refin
ance
.
Tabl
e 8.
Kno
wle
dge
abou
t the
Mor
tgag
e Pr
oces
s at
the
Tim
e of
Sur
vey,
by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all o
ther
mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
Mor
tgag
e Kn
owle
dge
(Per
cent
Not
at A
ll Ab
le to
Exp
lain
Eac
h Fe
atur
e) A
bilit
y to
Exp
lain
Mor
tgag
e Pr
oces
s(P
erce
ntag
e Di
strib
utio
n)Ch
arac
teris
tics
Fixe
d Ve
rsus
Ad
just
able
Rat
ePr
ime
Vers
us
Subp
rime
Inte
rest
Rat
e Ve
rsus
APR
Amor
tizat
ion
ofLo
anCo
nseq
uenc
e of
Not P
ayin
g
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
17
Housing Counseling(Percent Who Received)
Directly Through Broker Borrower Lender Third PartyLoan Type
Purchase 1 55.3 44.1 64.2 6.6 29.2 12.2 First-Time Homeowner2 51.6 47.8 59.6 5.9 34.5 22.5 Repeat Homeowner 56.7 42.7 66.2 6.8 27.0 6.7 Non-Occupant Owner 62.7 37.3 71.8 8.1 20.1 3.6
Refinance 1 67.0 32.9 74.8 19.3 5.9 3.9 Homeowner Cashout3 66.9 32.8 77.1 16.3 6.6 5.4 Homeowner Regular 67.2 32.7 72.5 22.0 5.5 3.1 Non-Occupant Owner 65.5 34.5 81.9 13.5 4.6 1.9
Loan Size$50,000 or Less 87.9 12.1 79.2 8.0 12.8 17.5 $50,001 to $150,000 66.9 32.9 70.3 12.6 17.1 10.5 $150,001 to $300,000 58.7 40.8 67.6 12.9 19.5 8.3 More than $300,000 55.4 44.3 70.4 13.2 16.4 4.3
Credit Score 2
Lower than 620 47.8 51.1 59.4 22.0 18.6 9.5 620 to 679 55.1 44.3 63.4 16.1 20.4 13.1 680 to 719 58.3 41.6 67.8 12.7 19.5 9.5 720 or Higher 64.8 34.9 72.6 10.8 16.5 6.2
Respondent Age35 Years or Younger 55.8 44.0 67.6 8.3 24.0 13.2 36 to 45 60.0 39.5 68.1 14.0 17.9 7.5 46 to 55 61.0 38.3 72.8 13.0 14.2 6.0 56 to 65 66.8 33.2 71.8 15.1 13.1 5.5 Older than 65 67.8 31.9 65.7 17.5 16.8 5.3
Respondent Race/EthnicityNon-Hispanic White 63.0 36.7 71.9 11.2 16.9 6.3 Hispanic and Non-White 55.5 44.0 62.6 17.0 20.4 13.2
Respondent EducationHigh School or Less 59.1 40.7 63.0 16.2 20.7 15.8 Some College 57.6 42.0 67.3 14.3 18.4 9.6 College Degree 61.8 37.9 71.1 11.6 17.3 7.1 Postgraduate 63.8 35.7 71.7 11.5 16.8 5.1
Household IncomeLess than $50,000 58.4 41.4 61.4 14.0 24.6 17.8 $50,000 to $99,999 61.3 38.1 68.3 12.7 19.0 9.8 $100,000 to $174,999 60.4 39.2 71.5 13.1 15.4 3.9 $175,000 or More 64.0 36.0 76.2 11.3 12.5 2.3
Household TypeCouple 61.3 38.3 69.6 12.9 17.5 7.3 Single 59.9 39.8 68.8 12.5 18.7 10.9
All Respondents 61.0 38.7 69.4 12.8 17.8 8.2
Table 9. Mortage Application Channel, First Contact, and Housing Counseling,
2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.
Mortgage Application Contact Initiated by(Percent Who Applied) (Percentage Distribution)
Characteristics
by Loan and Demographic Characteristics
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
18
Number of Lenders Considered The survey asked borrowers about the number of lenders they seriously considered when selecting a mortgage. As reflected in Table 10, almost half of all borrowers seriously considered applying to only one lender, more than one-third seriously considered two lenders, and 17 percent indicated that they seriously considered more than two lenders. About the same share of respondents who refinanced (49 percent) considered one lender as homebuyers (48 percent). The percentage of borrowers who considered only one lender was higher for borrowers reporting smaller loan size, lower credit score, less education, and lower household income and for older borrowers. Fifty percent of non-Hispanic white borrowers and 44 percent of non-white or Hispanic borrowers seriously considered only one lender. Overall, 72 percent of borrowers applied to one lender. Sixty-nine percent of homebuyers applied to one lender compared to 75 percent of respondents who refinanced. First-time purchasers were the least likely to apply to one lender at 64 percent. Twenty-seven percent of first-time purchasers applied to two lenders compared with 22 percent for borrowers as a whole. Borrowers aged 35 years old or younger reported applying to two lenders 23 percent of the time. Overall, 5 percent of borrowers applied to three lenders, and 1 percent applied to more than three lenders. The share of non-Hispanic white borrowers who applied to one lender was about 10 percentage points higher than the share for non-white or Hispanic borrowers (75 percent and 65 percent, respectively). Important Factors in Choosing the Lender The survey asked borrowers about how important a variety of factors were in selecting a lender or broker. Tables 11 and 12 list the responses to these questions. Borrowers indicated that the lender’s reputation and having an established banking relationship with a lender were important considerations in choosing a lender or broker. The lender’s reputation was important to 71 percent of borrowers. A banking relationship was important to 55 percent of borrowers. Having a local office or branch nearby was important to 49 percent of borrowers. Borrowers also identified factors they considered unimportant when selecting a lender. For example, whether the lender spoke the borrower’s primary language was reported as not important by 89 percent of borrowers. Homebuyers were much more likely than borrowers who refinanced to report that a lender used previously was unimportant (76 percent and 48 percent, respectively), and homebuyers were less likely than those refinancing loans to say that an agent or home builder’s recommendation was unimportant (45 percent and 82 percent, respectively). As shown in Table 12, 60 percent of all borrowers refinancing a mortgage reported that using a lender with an established banking relationship was important. Sixty percent of first-time homebuyers and 58 percent of borrowers aged 35 years or younger found recommendations from a friend, relative, or co-worker important in selecting a lender or broker. Homebuyers (55 percent) were much more likely than those refinancing an existing mortgage (18 percent) to report that recommendations from a real estate agent or a home builder were important.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
19
12
34
5 or
Mor
e1
23
45
or M
ore
Loan
Typ
eP
urch
ase
147
.8
35.4
14
.4
1.7
0.
7
68.7
24
.3
5.5
0.
7
0.7
Fi
rst-T
ime
Hom
eow
ner2
45.7
36
.0
16.2
1.
8
0.4
63
.8
26.6
7.
2
1.0
1.
4
Rep
eat H
omeo
wne
r49
.1
35.0
13
.6
1.7
0.
6
71.3
22
.9
4.7
0.
6
0.5
N
on-O
ccup
ant O
wne
r47
.8
36.5
12
.2
1.2
2.
3
73.0
22
.9
4.1
0.
0
0.0
R
efin
ance
149
.3
33.5
13
.8
1.8
1.
6
75.1
20
.1
3.8
0.
5
0.6
H
omeo
wne
r Cas
hout
348
.8
32.6
15
.3
2.2
1.
0
72.2
22
.0
4.9
0.
5
0.4
H
omeo
wne
r Reg
ular
50.1
33
.8
12.7
1.
5
1.9
76
.8
18.9
3.
1
0.5
0.
7
Non
-Occ
upan
t Ow
ner
44.2
37
.0
16.0
1.
1
1.7
78
.3
18.7
2.
5
0.0
0.
5
Loan
Siz
e$5
0,00
0 or
Les
s53
.6
33.8
11
.8
0.8
0.
0
73.3
16
.7
9.3
0.
4
0.4
$5
0,00
1 to
$15
0,00
052
.9
33.1
11
.6
1.3
1.
2
71.6
22
.2
4.8
0.
7
0.8
$1
50,0
01 to
$30
0,00
047
.5
35.2
14
.5
1.8
1.
0
72.1
22
.8
3.9
0.
6
0.6
M
ore
than
$30
0,00
044
.4
35.3
16
.9
2.2
1.
3
71.5
21
.8
5.4
0.
6
0.8
C
redi
t Sco
re2
Low
er th
an 6
2051
.4
30.2
14
.7
2.5
1.
3
66.3
26
.9
4.1
1.
5
1.1
62
0 to
679
45
.4
37.8
14
.7
1.2
0.
9
64.7
27
.4
6.2
0.
5
1.2
68
0 to
719
53
.1
30.8
13
.4
1.9
0.
8
71.2
22
.6
4.9
0.
6
0.8
72
0 or
Hig
her
48.0
34
.9
14.1
1.
8
1.2
74
.7
20.1
4.
2
0.5
0.
4
Res
pond
ent A
ge35
Yea
rs o
r You
nger
48.9
34
.3
13.9
1.
4
1.4
70
.7
22.8
5.
4
0.8
0.
4
36 to
45
46.2
36
.5
14.9
1.
1
1.2
71
.2
21.6
5.
4
0.4
1.
3
46 to
55
45.5
35
.0
16.3
2.
0
1.2
71
.1
23.2
4.
4
0.8
0.
5
56 to
65
51.6
32
.8
11.9
3.
0
0.7
75
.0
21.1
3.
2
0.5
0.
3
Old
er th
an 6
5
54.4
31
.7
11.7
1.
7
0.6
72
.7
22.0
4.
1
0.5
0.
8
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
50.2
33
.7
13.4
1.
6
1.0
74
.5
20.8
3.
6
0.6
0.
5
His
pani
c an
d N
on-W
hite
43.7
36
.8
16.0
2.
2
1.3
64
.5
26.1
7.
5
0.7
1.
2
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
58
.3
29.4
11
.0
1.1
0.
2
69.4
23
.3
5.9
0.
7
0.7
So
me
Col
lege
51.8
33
.9
12.5
0.
9
0.9
72
.3
22.8
3.
7
0.5
0.
6
Col
lege
Deg
ree
46
.4
35.9
14
.2
2.5
1.
0
71.2
22
.1
5.2
0.
7
0.8
Po
stgr
adua
te
44
.1
35.4
16
.8
1.9
1.
8
73.2
21
.4
4.4
0.
6
0.5
H
ouse
hold
Inco
me
Less
than
$50
,000
52.9
30
.1
14.1
1.
5
1.4
66
.9
23.0
7.
7
0.9
1.
5
$50,
000
to $
99,9
99
50
.0
35.1
12
.2
1.8
1.
0
71.2
23
.5
4.1
0.
7
0.4
$1
00,0
00 to
$17
4,99
9
46.9
35
.2
14.9
2.
0
1.1
73
.0
21.7
4.
1
0.4
0.
7
$175
,000
or M
ore
43.5
36
.6
17.2
1.
5
1.1
76
.1
19.3
3.
8
0.5
0.
3
Hou
seho
ld T
ype
Cou
ple
48.0
34
.8
14.3
1.
8
1.2
72
.4
22.0
4.
5
0.6
0.
5
Sing
le
50
.2
33.7
13
.6
1.6
0.
9
70.0
23
.1
5.1
0.
6
1.1
A
ll R
espo
nden
ts48
.5
34.5
14
.1
1.7
1.
1
71.8
22
.2
4.7
0.
6
0.7
Tabl
e 10
. Num
ber o
f Len
ders
Con
side
red
and
Appl
ied
to, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s
Cha
ract
eris
tics
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all
othe
r mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.3.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
evio
us m
ortg
age
or if
a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, it i
s cl
assi
fied
as a
cas
hout
refin
ance
.
Num
ber o
f Len
ders
Ser
ious
ly C
onsi
dere
dN
umbe
r of L
ende
rs A
pplie
d to
(Per
cent
age
Dis
trib
utio
n)(P
erce
ntag
e D
istr
ibut
ion)
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
20
Important Not ImportantAll Mortgages
Established banking relationship 54.8 45.2 Local office 48.8 51.2 Used previously 37.4 62.6 Lender is a personal friend 15.7 84.3 Lender operates online 39.4 60.6 Recommended by a friend/relative/co-worker 40.2 59.8 Recommended by an agent/home builder 37.0 63.0 Lender reputation 71.0 29.0 Spoke borrower's primary language (not English) 10.8 89.2
PurchasesEstablished banking relationship 49.9 50.1 Local office 54.1 45.9 Used previously 23.8 76.2 Lender is a personal friend 16.1 83.9 Lender operates online 37.5 62.5 Recommended by a friend/relative/co-worker 47.8 52.2 Recommended by an agent/home builder 55.3 44.7 Lender reputation 72.0 28.0 Spoke borrower's primary language (not English) 11.0 89.0
RefinancesEstablished banking relationship 60.0 40.0 Local office 43.2 56.8 Used previously 51.7 48.3 Lender is a personal friend 15.3 84.7 Lender operates online 41.5 58.5 Recommended by a friend/relative/co-worker 32.3 67.7 Recommended by an agent/home builder 17.7 82.3 Lender reputation 69.9 30.1 Spoke borrower's primary language (not English) 10.6 89.4
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.
(Percentage Distribution)Table 11. Importance of Decision Factors in Choosing the Lender
Factors Importance of Factors
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
21
Impo
rtan
tN
ot Im
port
ant
Impo
rtan
tN
ot Im
port
ant
Impo
rtan
tN
ot Im
port
ant
Loan
Typ
eP
urch
ase
149
.9
50
.1
47
.8
52.2
55
.3
44
.7
Fi
rst-T
ime
Hom
eow
ner2
48.3
51.7
60.3
39
.7
61.7
38.3
Rep
eat H
omeo
wne
r50
.2
49
.8
41
.6
58.4
53
.2
46
.8
N
on-O
ccup
ant O
wne
r55
.5
44
.5
33
.4
66.6
40
.6
59
.4
R
efin
ance
160
.0
40
.0
32
.3
67.7
17
.7
82
.3
H
omeo
wne
r Cas
hout
360
.3
39
.7
31
.4
68.6
15
.8
84
.2
H
omeo
wne
r Reg
ular
59.7
40.3
33.1
66
.9
18.8
81.2
Non
-Occ
upan
t Ow
ner
60.1
39.9
29.9
70
.1
18.5
81.5
Loan
Siz
e$5
0,00
0 or
Les
s64
.6
35
.4
26
.4
73.6
23
.7
76
.3
$5
0,00
1 to
$15
0,00
058
.8
41
.2
35
.3
64.7
34
.6
65
.4
$1
50,0
01 to
$30
0,00
053
.3
46
.7
41
.8
58.2
39
.3
60
.7
M
ore
than
$30
0,00
051
.6
48
.4
44
.8
55.2
37
.3
62
.7
C
redi
t Sco
re2
Low
er th
an 6
2056
.3
43
.7
30
.7
69.3
37
.9
62
.1
62
0 to
679
53
.0
47
.0
40
.7
59.3
42
.9
57
.1
68
0 to
719
51
.7
48
.3
42
.6
57.4
40
.0
60
.0
72
0 or
Hig
her
56.0
44.0
40.5
59
.5
34.3
65.7
Res
pond
ent A
ge35
Yea
rs o
r You
nger
53.3
46.7
57.6
42
.4
51.9
48.1
36 to
45
54.0
46.0
43.9
56
.1
38.5
61.5
46 to
55
55.3
44.7
34.9
65
.1
31.5
68.5
56 to
65
56.4
43.6
25.4
74
.6
25.3
74.7
Old
er th
an 6
5
57.1
42.9
20.5
79
.5
24.5
75.5
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
53.5
46.5
38.7
61
.3
34.7
65.3
His
pani
c an
d N
on-W
hite
58.3
41.7
44.3
55
.7
43.4
56.6
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
58
.1
41
.9
35
.1
64.9
37
.6
62
.4
So
me
Col
lege
55.2
44.8
37.5
62
.5
36.9
63.1
Col
lege
Deg
ree
54
.0
46
.0
43
.1
56.9
38
.6
61
.4
Po
stgr
adua
te
54
.2
45
.8
41
.1
58.9
34
.7
65
.3
H
ouse
hold
Inco
me
Less
than
$50
,000
58.7
41.3
38.1
61
.9
44.6
55.4
$50,
000
to $
99,9
99
53
.5
46
.5
41
.2
58.8
38
.1
61
.9
$1
00,0
00 to
$17
4,99
9
54.9
45.1
40.5
59
.5
34.0
66.0
$175
,000
or M
ore
53.6
46.4
39.6
60
.4
32.1
67.9
Hou
seho
ld T
ype
Cou
ple
54.8
45.2
39.3
60
.7
36.5
63.5
Sing
le
55
.1
44
.9
43
.0
57.0
38
.6
61
.4
A
ll R
espo
nden
ts54
.8
45
.2
40
.2
59.8
37
.0
63
.0
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Cha
ract
eris
tics
Esta
blis
hed
Ban
king
Rel
atio
nshi
pR
ecom
men
ded
by F
riend
/Rel
ativ
e/C
o-w
orke
rR
ecom
men
ded
by A
gent
/Hom
e B
uild
er
Tabl
e 12
. Im
port
ance
of D
ecis
ion
Fact
ors
in C
hoos
ing
the
Lend
er, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s(P
erce
ntag
e D
istr
ibut
ion)
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all
othe
r mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
22
Important Factors in Choosing the Mortgage The survey asked how important a variety of mortgage terms or features were in selecting a mortgage. As shown in Table 13, a low interest rate was important to 98 percent of borrowers, a fixed-rate mortgage was important to 90 percent, and a low APR was important to 88 percent. Low closing fees were important to 84 percent of borrowers. Overall, 61 percent of respondents reported that a low down payment was important. As reflected in Table 14, borrowers with credit scores below 620 (82 percent), borrowers with at most a high school education (75 percent), borrowers with income below $50,000 (74 percent), and first-time homebuyers (71 percent) said that a low down payment was important in choosing the mortgage. A low monthly payment was important to 81 percent of all borrowers. A low monthly payment was important to at least 88 percent of borrowers with a high school education or less, those with credit scores below 680, and those with household income below $50,000. 6. During the Application Process The survey asked borrowers about what additional information, if any, a lender asked them to provide during the mortgage application process. The survey found that purchase-mortgage borrowers were more likely to be requested for additional information by a lender than refinance borrowers. Table 15 shows that 16 percent of all borrowers reported being asked to resolve problems that appeared on a credit report. The share of borrowers who reported lender requests to fix problems with their credit reports differed sharply by credit score: 39 percent of borrowers with credit score lower than 620 and 29 percent of borrowers with credit scores between 620 and 679 were asked by the lender to resolve a problem, compared to 19 percent of borrowers with scores between 680 and 719 and 9 percent of borrowers with scores 720 or greater. About 58 percent of respondents reported answering follow-up requests for more information, and 18 percent reported having to redo paperwork during the application process. The percent of borrowers who redid paperwork was fairly steady across groups defined by demographics and loan characteristics. In contrast, those borrowers who were asked follow-up questions varied more noticeably. Sixty-four percent of borrowers with loans of more than $300,000 had to answer follow-up requests, while 44 percent of borrowers with loans of $50,000 or less received such requests. The percentage of borrowers who responded to follow-up requests also rose with income and education, but the percentage fell with credit score. Purchasers were also more likely to have answered follow-up questions than those who refinanced. Seven percent of borrowers reported needing multiple appraisals. The percentage of borrowers who required multiple appraisals was somewhat higher for first-time homebuyers, borrowers with credit scores below 680, and Hispanic and non-White borrowers. About 24 percent of all borrowers had to delay their closing date. Delays were more common for purchase mortgages than for refinances. The percentage of respondents who reported that the closing date had been delayed ranged from 27 to 33 percent across homebuyers and 17 to 29 percent for borrowers who refinanced.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
23
Important Not ImportantAll Mortgages
Low interest rate 97.9 2.1 Low APR 87.5 12.5 Low closing fees 83.9 16.1 Low down payment 61.2 38.8 Low monthly payment 80.7 19.3 Fixed interest rate 89.9 10.1 Term less than 30 years 59.8 40.2 No mortgage insurance 54.8 45.2
PurchasesLow interest rate 97.1 2.9 Low APR 87.3 12.7 Low closing fees 83.2 16.8 Low down payment 64.3 35.7 Low monthly payment 81.5 18.5 Fixed interest rate 89.7 10.3 Term less than 30 years 68.7 31.3 No mortgage insurance 50.0 50.0
RefinancesLow interest rate 98.7 1.3 Low APR 87.8 12.2 Low closing fees 84.5 15.5 Low down payment 58.0 42.0 Low monthly payment 79.8 20.2 Fixed interest rate 90.1 9.9 Term less than 30 years 50.3 49.7 No mortgage insurance 59.9 40.1
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.
(Percentage Distribution)Table 13. Importance of Decision Factors in Choosing the Mortgage
Factors Importance of Factors
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
24
Impo
rtan
tN
ot Im
port
ant
Impo
rtan
tN
ot Im
port
ant
Impo
rtan
tN
ot Im
port
ant
Loan
Typ
eP
urch
ase
164
.3
35.7
81
.5
18.5
50
.0
50.0
Fi
rst-T
ime
Hom
eow
ner2
71.4
28
.6
86.4
13
.6
42.9
57
.1
Rep
eat H
omeo
wne
r62
.6
37.4
80
.3
19.7
54
.4
45.6
N
on-O
ccup
ant O
wne
r42
.8
57.2
67
.1
32.9
51
.1
48.9
R
efin
ance
158
.0
42.0
79
.8
20.2
59
.9
40.1
H
omeo
wne
r Cas
hout
357
.9
42.1
80
.1
19.9
60
.4
39.6
H
omeo
wne
r Reg
ular
59.0
41
.0
80.1
19
.9
59.9
40
.1
Non
-Occ
upan
t Ow
ner
48.4
51
.6
74.0
26
.0
56.5
43
.5
Loan
Siz
e$5
0,00
0 or
Les
s61
.1
38.9
77
.8
22.2
47
.3
52.7
$5
0,00
1 to
$15
0,00
065
.2
34.8
81
.3
18.7
48
.4
51.6
$1
50,0
01 to
$30
0,00
062
.9
37.1
81
.5
18.5
55
.8
44.2
M
ore
than
$30
0,00
053
.7
46.3
78
.8
21.2
61
.5
38.5
C
redi
t Sco
re2
Low
er th
an 6
2082
.4
17.6
91
.8
8.2
53.7
46
.3
620
to 6
79
75.5
24
.5
89.2
10
.8
49.3
50
.7
680
to 7
19
69.1
30
.9
86.1
13
.9
54.5
45
.5
720
or H
ighe
r52
.7
47.3
75
.5
24.5
56
.7
43.3
R
espo
nden
t Age
35 Y
ears
or Y
oung
er65
.2
34.8
84
.1
15.9
50
.1
49.9
36
to 4
561
.9
38.1
79
.8
20.2
57
.6
42.4
46
to 5
562
.1
37.9
78
.1
21.9
57
.9
42.1
56
to 6
557
.5
42.5
80
.2
19.8
53
.6
46.4
O
lder
than
65
53
.2
46.8
80
.0
20.0
55
.3
44.7
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
57
.7
42.3
78
.9
21.1
53
.9
46.1
H
ispa
nic
and
Non
-Whi
te70
.7
29.3
85
.5
14.5
57
.4
42.6
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
74.7
25
.3
88.1
11
.9
53.7
46
.3
Som
e C
olle
ge
67
.5
32.5
85
.7
14.3
53
.6
46.4
C
olle
ge D
egre
e
60.1
39
.9
80.1
19
.9
55.6
44
.4
Post
grad
uate
51.3
48
.7
73.5
26
.5
55.3
44
.7
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
73
.7
26.3
88
.3
11.7
49
.6
50.4
$5
0,00
0 to
$99
,999
67.0
33
.0
84.3
15
.7
52.1
47
.9
$100
,000
to $
174,
999
57
.1
42.9
78
.7
21.3
59
.2
40.8
$1
75,0
00 o
r Mor
e
42
.5
57.5
67
.9
32.1
58
.4
41.6
H
ouse
hold
Typ
eC
oupl
e60
.7
39.3
80
.2
19.8
54
.7
45.3
Si
ngle
62.9
37
.1
81.8
18
.2
55.1
44
.9
All
Res
pond
ents
61.2
38
.8
80.7
19
.3
54.8
45
.2
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Cha
ract
eris
tics
Low
Dow
n Pa
ymen
tLo
w M
onth
ly P
aym
ent
No
Mor
tgag
e In
sura
nce
Tabl
e 14
. Im
port
ance
of D
ecis
ion
Fact
ors
in C
hoos
ing
the
Mor
tgag
e, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s(P
erce
ntag
e D
istr
ibut
ion)
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all
othe
r mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
25
Characteristics Resolved Credit Report Issues
Answered Follow-up Requests
HadMultiple
Appraisals
Redid Paperwork Due to Delays
Delayed ClosingDate
Loan TypePurchase 1 20.3 66.6 8.1 21.0 29.1
First-Time Homeowner2 25.4 68.6 10.4 24.1 31.1 Repeat Homeowner 18.8 64.6 6.9 18.9 27.3 Non-Occupant Owner 7.6 71.3 6.2 22.5 33.2
Refinance 1 11.7 48.1 5.3 15.1 18.2 Homeowner Cashout3 12.8 51.8 6.1 16.1 19.4 Homeowner Regular 10.8 44.2 4.8 14.1 16.5 Non-Occupant Owner 13.0 61.9 4.1 17.5 28.5
Loan Size$50,000 or Less 16.1 44.3 4.5 20.6 25.0 $50,001 to $150,000 17.5 54.2 7.6 19.2 25.6 $150,001 to $300,000 16.4 56.9 7.0 17.4 23.3 More than $300,000 14.1 63.8 5.5 17.7 22.4
Credit Score 2
Lower than 620 39.0 62.3 8.8 23.3 34.2 620 to 679 29.1 62.8 10.3 24.0 28.4 680 to 719 18.9 59.2 7.3 19.5 28.1 720 or Higher 9.1 55.0 5.2 15.4 20.3
Respondent Age35 Years or Younger 16.6 61.3 7.8 18.4 26.0 36 to 45 16.1 58.3 6.7 16.5 21.5 46 to 55 18.0 56.7 6.4 20.0 25.9 56 to 65 15.2 54.9 6.1 16.2 21.0 Older than 65 12.2 52.0 5.4 20.4 23.9
Respondent Race/EthnicityNon-Hispanic White 14.7 56.7 6.3 17.4 22.9 Hispanic and Non-White 19.9 59.8 7.9 20.0 26.4
Respondent EducationHigh School or Less 21.5 54.2 9.3 20.9 25.0 Some College 19.0 55.1 6.7 19.8 24.9 College Degree 13.7 56.9 6.3 16.3 23.0 Postgraduate 14.5 62.2 6.2 17.9 23.5
Household IncomeLess than $50,000 22.2 57.5 9.2 22.2 28.8 $50,000 to $99,999 17.3 55.8 7.5 18.7 24.4 $100,000 to $174,999 13.8 56.7 5.1 15.2 20.9 $175,000 or More 11.5 63.1 5.2 17.8 22.5
Household TypeCouple 15.6 57.4 6.4 17.9 23.5 Single 17.6 58.2 7.7 18.8 24.8
All Respondents 16.1 57.6 6.7 18.1 23.8 Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Table 15. Additional Steps Taken in the Mortgage Process, by Loan and Demographic Characteristics(Percent Who Took Each Step)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
26
7. Closing on a Mortgage The survey asked questions about the sources of information used by borrowers about their closing documents, funding sources of closing costs, finding a settlement agent, title insurance, and other features of the mortgage. Tables 16 to 18 reflect the responses. Source of Information on Closing Documents Seventy-one percent of borrowers reported seeking information or input from the lender or broker on closing documents. Thirty percent of all borrowers and 64 percent of first-time homebuyers asked their real estate agent for input about their closing documents. Eight to 22 percent of borrowers sought input from the settlement agent, an attorney, the title agent, or a trusted friend, and 1 percent turned to a housing counselor for input on the mortgage closing. The percentage of borrowers seeking input on closing documents was uniformly higher for homebuyers than for refinancing borrowers. Closing Costs The survey asked borrowers to report who paid any of the closing costs. Table 17 reflects that the borrower paid at least some of the closing costs on 62 percent of loans. In purchase transactions, 81 percent of borrowers paid all closing costs, and the lender and seller were less likely to have paid some of the closing costs (12 percent and 32 percent of loans, respectively). For refinances, the lender paid some or all of closing costs for 24 percent of the loans and the borrower paid some or all of the closing costs for 42 percent. Because closing costs were funded by multiple sources, the percentages do not add up to 100 percent. Closing costs were added to the mortgage amount on 38 percent of loans overall – 18 percent of purchases and 58 percent of refinances. Selecting Settlement Agent The survey asked respondents about their search for a settlement agent and about the features present in the mortgage they obtained. Table 18 reflects the responses to these questions. Two-thirds of respondents indicated that the lender recommended the settlement agent. More than one-fifth of borrowers overall indicated they selected an agent they had used previously, with slightly greater shares for non-occupant purchasers and those who refinanced. Ten percent of borrowers shopped around for a settlement agent to handle their closing, with the highest share for first-time homebuyers. Mortgage Features Seventy-nine percent of borrowers reported that their mortgages included an escrow account for taxes or homeowner insurance, a higher percentage on purchases than on refinances. Three percent of borrowers reported loans that included a pre-payment penalty and 2 percent reported that their loan included a balloon payment feature.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
27
Lender or Broker
Personal Attorney
Real Estate Agent
Settlement Agent
Title Agent Trusted Friend
Housing Counselor
Loan TypePurchase 1 79.0 11.4 53.0 26.2 18.7 28.0 2.0
First-Time Homeowner2 80.6 12.8 63.9 22.8 20.3 46.5 3.1 Repeat Homeowner 79.1 10.5 48.1 27.6 17.4 17.0 1.1 Non-Occupant Owner 70.4 11.6 37.3 32.1 20.1 20.8 3.4
Refinance 1 63.3 3.6 4.7 17.3 8.8 11.2 0.4 Homeowner Cashout3 61.1 2.8 4.6 15.7 9.5 11.2 0.6 Homeowner Regular 64.8 3.5 4.8 17.7 7.9 11.4 0.3 Non-Occupant Owner 62.3 11.4 5.5 25.2 12.8 8.8 0.5
Loan Size$50,000 or Less 60.8 3.0 20.5 14.4 14.3 22.9 7.1 $50,001 to $150,000 69.2 7.3 30.0 16.5 15.5 20.8 1.2 $150,001 to $300,000 71.4 7.8 30.5 22.3 13.8 19.9 1.3 More than $300,000 74.6 8.1 28.1 28.4 12.0 18.2 0.7
Credit Score 2
Lower than 620 68.3 8.4 30.3 14.6 11.4 16.4 2.0 620 to 679 70.1 6.8 30.9 20.9 15.5 20.8 2.0 680 to 719 72.6 9.0 32.5 20.3 16.0 19.6 1.4 720 or Higher 71.7 7.5 28.3 23.3 13.1 19.9 0.9
Respondent Age35 Years or Younger 78.0 9.0 47.0 20.8 15.0 38.3 2.0 36 to 45 70.9 7.0 28.0 22.9 14.7 19.0 1.4 46 to 55 68.5 8.4 23.5 21.8 13.7 12.1 0.7 56 to 65 66.0 7.1 17.5 21.1 12.8 8.3 0.8 Older than 65 69.4 4.6 19.5 23.4 10.8 7.9 0.8
Respondent Race/EthnicityNon-Hispanic White 71.2 7.8 28.5 20.9 13.1 19.8 1.0 Hispanic and Non-White 71.6 7.2 32.4 24.4 16.0 19.7 2.0
Respondent EducationHigh School or Less 64.2 7.7 26.4 17.3 15.1 17.2 3.0 Some College 70.0 6.1 29.4 20.0 14.5 16.6 1.2 College Degree 73.0 7.9 30.3 21.8 13.6 22.6 0.8 Postgraduate 73.2 8.7 29.9 25.7 13.2 20.2 1.1
Household IncomeLess than $50,000 68.1 7.6 34.4 17.8 16.9 23.9 2.8 $50,000 to $99,999 71.8 7.6 32.6 20.7 14.0 21.6 1.3 $100,000 to $174,999 72.9 7.0 25.6 22.1 12.1 17.2 0.5 $175,000 or More 70.7 8.9 24.4 28.4 13.6 16.2 0.7
Household TypeCouple 71.9 7.2 28.8 22.5 13.6 17.9 1.1 Single 69.8 8.9 31.7 20.2 14.6 25.4 1.6
All Respondents 71.3 7.6 29.5 21.9 13.9 19.8 1.2
3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Sources of Input About Closing Documents(Percentage Who Sought Input from Each Source)
Characteristics
Table 16. Sources of Input About Closing Documents, by Loan and Demographic Characteristics
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
28
ByBorrower
ByLender
BySeller
By Adding toMortgage
Loan TypePurchase 1 81.2 11.8 31.5 18.1
First-Time Homeowner2 79.8 12.3 39.1 13.8 Repeat Homeowner 81.6 11.5 28.1 20.3 Non-Occupant Owner 84.6 11.7 19.8 21.5
Refinance 1 41.6 24.4 0.0 58.4 Homeowner Cashout3 31.4 19.2 0.0 72.0 Homeowner Regular 47.1 27.9 0.0 49.1 Non-Occupant Owner 56.8 24.7 0.0 58.3
Loan Size$50,000 or Less 57.3 21.3 16.9 43.5 $50,001 to $150,000 59.6 14.0 16.4 40.3 $150,001 to $300,000 61.7 17.4 18.0 36.9 More than $300,000 65.5 23.2 12.7 35.2
Credit Score 2
Lower than 620 55.8 19.7 14.0 42.0 620 to 679 56.3 15.8 20.7 41.4 680 to 719 54.8 17.6 18.7 41.5 720 or Higher 66.0 18.5 14.3 35.2
Respondent Age35 Years or Younger 69.8 16.5 29.1 23.8 36 to 45 64.1 18.8 15.6 33.6 46 to 55 59.0 17.3 11.2 42.3 56 to 65 53.4 19.1 7.1 51.3 Older than 65 55.6 18.8 8.6 52.8
Respondent Race/EthnicityNon-Hispanic White 61.8 17.5 16.2 39.3 Hispanic and Non-White 62.1 19.2 16.1 33.3
Respondent EducationHigh School or Less 56.7 17.2 13.6 40.2 Some College 57.3 15.4 15.2 40.7 College Degree 62.1 19.0 18.0 37.1 Postgraduate 68.2 19.1 15.6 34.5
Household IncomeLess than $50,000 56.6 16.0 19.2 36.9 $50,000 to $99,999 61.8 15.9 19.7 40.1 $100,000 to $174,999 61.5 20.1 13.2 38.4 $175,000 or More 68.4 20.6 10.1 31.5
Household TypeCouple 61.3 18.5 16.1 37.2 Single 63.8 16.2 16.3 39.2
All Respondents 61.9 17.9 16.2 37.7
2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Table 17. Source of Funding for the Closing Costs, by Loan and Demographic Characteristics(Percent Who Reported Each Source)
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.
Characteristics Closing Costs Paid
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
29
Lend
er R
ecom
men
ded
Prev
ious
Agen
tSh
oppe
dAr
ound
Prep
aym
ent
Pena
ltyEs
crow
Acco
unt
Ballo
onPa
ymen
tIn
tere
st-O
nly
Paym
ent
Loan
Typ
ePu
rcha
se1
66.2
19
.0
11.5
2.
6
82.5
1.9
4.
9
Firs
t-Tim
e H
omeo
wne
r267
.3
11.8
13
.6
3.1
83
.6
1.
9
6.2
R
epea
t Hom
eow
ner
66.9
21
.6
10.2
2.
2
84.2
1.8
3.
9
Non
-Occ
upan
t Ow
ner
56.3
34
.1
11.1
2.
9
65.2
2.6
5.
5
Ref
inan
ce1
66.1
22
.6
8.5
2.
5
74.5
1.2
4.
3
Hom
eow
ner C
asho
ut3
65.3
22
.6
8.5
2.
3
75.3
1.1
4.
2
Hom
eow
ner R
egul
ar66
.4
22.3
8.
5
2.6
74
.7
1.
0
4.3
N
on-O
ccup
ant O
wne
r68
.0
26.0
8.
7
2.3
65
.9
2.
7
4.0
Lo
an S
ize
$50,
000
or L
ess
63.7
24
.7
8.4
4.
0
57.0
5.6
9.
8
$50,
001
to $
150,
000
63.5
19
.0
10.4
3.
5
79.7
1.2
5.
0
$150
,001
to $
300,
000
68.8
20
.7
9.5
2.
0
82.1
1.2
4.
0
Mor
e th
an $
300,
000
65.3
22
.6
10.7
2.
0
73.3
2.1
4.
6
Cre
dit S
core
2
Low
er th
an 6
2066
.9
18.0
9.
6
2.4
87
.7
1.
9
4.9
62
0 to
679
67
.8
18.2
11
.7
3.0
83
.4
1.
3
5.0
68
0 to
719
68
.3
20.8
8.
9
3.3
83
.8
1.
2
6.0
72
0 or
Hig
her
65.0
21
.7
9.8
2.
2
74.9
1.6
4.
1
Res
pond
ent A
ge35
Yea
rs o
r You
nger
65.0
19
.9
12.7
2.
7
83.8
1.7
4.
5
36 to
45
66.7
21
.5
10.5
3.
2
79.4
1.0
4.
5
46 to
55
67.4
21
.5
9.0
2.
2
77.3
1.4
5.
2
56 to
65
64.5
20
.1
8.0
1.
4
74.8
1.9
4.
1
Old
er th
an 6
5
67.9
20
.4
7.4
3.
0
72.0
2.3
4.
3
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
66.5
21
.1
9.1
2.
0
79.7
1.4
4.
3
His
pani
c an
d N
on-W
hite
65.3
19
.6
12.5
3.
9
75.7
1.8
5.
2
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
65
.8
21.8
10
.0
4.8
76
.2
1.
8
6.9
So
me
Col
lege
66.1
20
.4
9.3
1.
8
80.3
0.8
5.
1
Col
lege
Deg
ree
65
.7
20.0
10
.1
2.6
79
.6
1.
8
4.2
Po
stgr
adua
te
67
.0
21.6
10
.6
2.1
76
.7
1.
7
3.6
H
ouse
hold
Inco
me
Less
than
$50
,000
65.0
19
.2
10.0
4.
3
78.1
1.6
6.
9
$50,
000
to $
99,9
99
66
.2
20.8
10
.4
2.2
82
.2
1.
3
4.7
$1
00,0
00 to
$17
4,99
9
67.4
20
.5
9.7
2.
2
79.3
1.7
3.
3
$175
,000
or M
ore
65.0
22
.6
9.9
1.
9
69.7
1.6
4.
2
Hou
seho
ld T
ype
Cou
ple
66.5
21
.0
9.6
2.
6
78.2
1.7
4.
6
Sing
le
65
.2
19.7
11
.3
2.2
80
.0
1.
0
4.4
A
ll R
espo
nden
ts66
.2
20.7
10
.0
2.5
78
.6
1.
5
4.6
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.3.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
evio
us m
ortg
age
or if
a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, it i
s cl
assi
fied
as a
cas
hout
refin
ance
.
Tabl
e 18
. Set
tlem
ent A
gent
Sel
ectio
n an
d M
ortg
age
Feat
ures
, by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
Char
acte
ristic
s
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all o
ther
mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
Set
tlem
ent A
gent
Sel
ectio
nM
ortg
age
Feat
ures
(Per
cent
Who
Use
d Ea
ch M
etho
d)(P
erce
nt w
ith E
ach
Feat
ure)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
30
8. Satisfaction with Mortgage Terms, Mortgage Process, and Information
The survey asked borrowers about their satisfaction with the terms, interest rate, and closing costs on their most recent mortgages. The survey also asked borrowers about their satisfaction with the lender or broker used by the borrower, the application and closing process, and the mortgage disclosure documents provided to the borrower. Tables 19 to 21 reflect the responses to these questions. Satisfaction with Overall Mortgage Terms Seventy-nine percent of respondents indicated that they were very satisfied with the general terms of their mortgage, and an additional 20 percent indicated that they were somewhat satisfied. Two percent of respondents indicated that they were not at all satisfied with their mortgage terms. There was little variation in reported satisfaction with mortgage terms across groups of borrowers. Satisfaction with Interest Rate Seventy-three percent of respondents indicated that they were very satisfied that they received the lowest interest rate for which they could qualify, and 23 percent reported they were somewhat satisfied. Overall, 4 percent of borrowers reported that they were not satisfied that they received the lowest interest rate for which they could qualify. Borrowers older than 65 years (9 percent), non-occupant homebuyers (9 percent), and borrowers taking loans of $50,000 or less (9 percent) were slightly more likely to report being dissatisfied with their interest rate. Satisfaction with Closing Costs Respondents were less likely to report that they were very satisfied that they received the lowest closing costs than to report satisfaction with overall terms and interest rates. Approximately 58 percent were very satisfied that they had received the lowest closing costs, and 34 percent were somewhat satisfied that they received the lowest closing costs. Nine percent were not satisfied that they had received the lowest closing costs. Borrowers older than 65 years (13 percent), borrowers with household income less than $50,000 (11 percent), and Hispanic or non-white borrowers (11 percent) were more likely to report being dissatisfied with their closing costs than other groups. Satisfaction with Lender or Broker Table 20 reflects respondents’ overall satisfaction with the lender or broker used by the borrower, the mortgage application process, and the loan closing process. About 95 percent of all respondents indicated that they were very or somewhat satisfied with the lender or broker they used. Slightly more than three out of four respondents reported being very satisfied with their lender. Four percent reported being dissatisfied with their lender.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
31
Very
Som
ewha
tN
ot a
t All
Very
Som
ewha
tN
ot a
t All
Very
Som
ewha
tN
ot a
t All
Loan
Typ
eP
urch
ase
177
.2
21.3
1.
5
70.9
25
.1
3.9
55
.7
36.2
8.
0
Firs
t-Tim
e H
omeo
wne
r272
.5
26.1
1.
4
66.6
30
.1
3.2
56
.8
35.1
8.
1
Rep
eat H
omeo
wne
r80
.1
18.4
1.
5
75.1
21
.1
3.8
56
.1
36.5
7.
4
Non
-Occ
upan
t Ow
ner
77.8
20
.4
1.8
60
.9
30.7
8.
5
48.4
39
.5
12.1
Ref
inan
ce1
80.0
18
.2
1.7
75
.3
20.0
4.
7
59.5
31
.5
9.1
H
omeo
wne
r Cas
hout
376
.1
22.0
2.
0
71.2
22
.6
6.2
54
.0
35.0
11
.0
H
omeo
wne
r Reg
ular
83.1
15
.2
1.7
78
.6
17.7
3.
7
64.3
28
.2
7.5
N
on-O
ccup
ant O
wne
r75
.7
23.2
1.
1
69.3
25
.8
4.9
46
.8
41.4
11
.8
Lo
an S
ize
$50,
000
or L
ess
71.6
26
.0
2.4
63
.8
27.7
8.
5
55.5
32
.0
12.5
$50,
001
to $
150,
000
79.2
18
.7
2.1
74
.3
21.3
4.
4
60.8
30
.2
9.0
$1
50,0
01 to
$30
0,00
078
.4
20.3
1.
3
73.0
23
.0
4.1
57
.1
34.7
8.
2
Mor
e th
an $
300,
000
78.5
19
.9
1.6
72
.5
23.3
4.
2
54.6
37
.2
8.1
C
redi
t Sco
re2
Low
er th
an 6
2067
.2
29.8
2.
9
65.3
29
.4
5.3
59
.6
29.8
10
.7
62
0 to
679
73
.2
24.3
2.
6
70.7
24
.2
5.1
59
.6
30.5
9.
9
680
to 7
19
79.2
18
.9
1.9
74
.9
21.9
3.
2
59.4
31
.8
8.8
72
0 or
Hig
her
81.2
17
.7
1.1
74
.1
21.7
4.
2
56.2
35
.9
7.8
R
espo
nden
t Age
35 Y
ears
or Y
oung
er77
.6
21.5
0.
9
71.2
26
.4
2.5
57
.2
37.1
5.
7
36 to
45
78.8
20
.4
0.9
74
.6
22.4
3.
0
58.9
34
.7
6.3
46
to 5
577
.0
20.4
2.
6
73.3
21
.6
5.1
55
.7
33.1
11
.1
56
to 6
581
.1
16.9
2.
0
75.8
18
.8
5.4
58
.5
31.5
9.
9
Old
er th
an 6
5
79.7
17
.5
2.7
69
.1
21.9
9.
0
57.5
29
.1
13.4
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
81.2
17
.2
1.6
75
.7
20.5
3.
8
58.8
33
.5
7.7
H
ispa
nic
and
Non
-Whi
te71
.3
27.0
1.
7
65.9
28
.6
5.6
54
.2
35.1
10
.7
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
75.9
21
.5
2.6
71
.0
23.1
5.
9
59.9
29
.7
10.4
Som
e C
olle
ge
76
.9
21.6
1.
5
72.6
23
.1
4.3
60
.0
31.0
9.
0
Col
lege
Deg
ree
80
.2
18.3
1.
5
74.5
21
.7
3.8
57
.5
34.6
7.
8
Post
grad
uate
79.0
19
.4
1.6
72
.4
23.3
4.
3
54.3
37
.5
8.2
H
ouse
hold
Inco
me
Less
than
$50
,000
74.3
23
.0
2.7
70
.5
24.2
5.
3
61.3
27
.9
10.7
$50,
000
to $
99,9
99
77
.0
21.3
1.
7
72.0
23
.0
4.9
56
.8
34.6
8.
5
$100
,000
to $
174,
999
81
.0
17.6
1.
4
74.7
21
.6
3.6
56
.9
35.1
8.
0
$175
,000
or M
ore
82.1
17
.3
0.6
74
.9
22.1
3.
1
56.3
36
.4
7.3
H
ouse
hold
Typ
eC
oupl
e79
.3
19.1
1.
5
74.0
22
.1
3.9
57
.9
33.9
8.
2
Sing
le
76
.2
21.9
1.
9
70.1
24
.2
5.6
56
.7
33.7
9.
7
All
Res
pond
ents
78.5
19
.8
1.6
73
.0
22.7
4.
3
57.5
33
.9
8.5
Tabl
e 19
. Sat
isfa
ctio
n th
at M
ortg
age
Was
the
Loan
with
the
Bes
t Fea
ture
s, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all
othe
r mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.3.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
evio
us m
ortg
age
or if
a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, it i
s cl
assi
fied
as a
cas
hout
refin
ance
.
(Per
cent
age
Dis
trib
utio
n)
Cha
ract
eris
tics
Term
sIn
tere
st R
ate
Clo
sing
Cos
ts
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
32
Very
Som
ewha
tN
ot a
t All
Very
Som
ewha
tN
ot a
t All
Very
Som
ewha
tN
ot a
t All
Loan
Typ
eP
urch
ase
175
.6
18.6
5.
8
64.4
27
.0
8.7
65
.3
25.9
8.
8
Firs
t-Tim
e H
omeo
wne
r272
.2
21.7
6.
1
62.3
29
.7
8.0
62
.9
29.0
8.
1
Rep
eat H
omeo
wne
r77
.7
17.1
5.
2
66.9
24
.4
8.7
67
.9
23.5
8.
6
Non
-Occ
upan
t Ow
ner
76.8
15
.1
8.1
55
.9
32.3
11
.8
57
.5
28.4
14
.1
R
efin
ance
177
.7
19.6
2.
7
67.6
26
.8
5.6
70
.4
23.6
6.
0
Hom
eow
ner C
asho
ut3
75.2
22
.3
2.5
65
.9
28.5
5.
5
67.4
26
.4
6.2
H
omeo
wne
r Reg
ular
80.3
17
.0
2.7
70
.0
24.9
5.
1
73.6
20
.9
5.5
N
on-O
ccup
ant O
wne
r67
.8
27.7
4.
5
54.2
35
.0
10.8
57.1
32
.9
10.0
Loan
Siz
e$5
0,00
0 or
Les
s75
.7
20.2
4.
1
63.5
27
.1
9.3
65
.0
26.0
9.
0
$50,
001
to $
150,
000
77.6
17
.4
5.0
66
.5
25.7
7.
8
69.6
23
.3
7.0
$1
50,0
01 to
$30
0,00
075
.9
20.1
4.
1
66.7
26
.8
6.5
69
.0
23.6
7.
4
Mor
e th
an $
300,
000
76.7
19
.5
3.8
64
.1
28.5
7.
4
63.7
28
.3
8.0
C
redi
t Sco
re2
Low
er th
an 6
2074
.5
19.8
5.
7
65.0
23
.1
11.9
66.9
24
.6
8.5
62
0 to
679
73
.0
22.1
5.
0
63.3
28
.2
8.5
65
.5
26.7
7.
8
680
to 7
19
76.8
19
.0
4.3
66
.7
26.3
7.
0
69.0
22
.5
8.5
72
0 or
Hig
her
77.9
18
.1
3.9
66
.7
27.0
6.
3
68.2
24
.8
7.0
R
espo
nden
t Age
35 Y
ears
or Y
oung
er74
.6
21.0
4.
3
63.8
29
.7
6.5
64
.7
28.0
7.
3
36 to
45
76.7
19
.3
3.9
68
.7
24.6
6.
7
68.8
24
.5
6.7
46
to 5
576
.8
18.8
4.
4
63.7
27
.7
8.6
67
.0
24.2
8.
8
56 to
65
78.9
16
.5
4.6
69
.0
25.0
5.
9
71.2
22
.0
6.8
O
lder
than
65
77
.6
18.0
4.
4
64.7
26
.5
8.9
69
.6
22.4
8.
0
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
78.1
17
.5
4.3
67
.0
25.5
7.
5
68.7
23
.7
7.6
H
ispa
nic
and
Non
-Whi
te72
.5
23.3
4.
2
63.2
30
.6
6.2
65
.3
27.5
7.
2
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
75
.9
20.8
3.
3
68.0
23
.6
8.3
70
.6
23.4
6.
0
Som
e C
olle
ge
75
.7
19.6
4.
7
65.9
26
.5
7.6
68
.9
23.6
7.
5
Col
lege
Deg
ree
78
.0
17.6
4.
3
66.5
27
.2
6.2
67
.7
25.0
7.
3
Post
grad
uate
75.9
19
.9
4.2
64
.3
28.2
7.
5
65.6
26
.1
8.3
H
ouse
hold
Inco
me
Less
than
$50
,000
74.5
20
.7
4.8
64
.5
27.3
8.
3
68.2
24
.2
7.5
$5
0,00
0 to
$99
,999
75.4
20
.0
4.6
66
.4
26.7
6.
9
68.3
23
.8
8.0
$1
00,0
00 to
$17
4,99
9
79.5
17
.3
3.2
68
.4
26.0
5.
6
69.1
24
.7
6.2
$1
75,0
00 o
r Mor
e
76
.3
18.6
5.
1
61.9
28
.6
9.5
63
.8
27.6
8.
6
Hou
seho
ld T
ype
Cou
ple
76.7
19
.3
4.0
66
.2
26.6
7.
2
67.8
24
.6
7.6
Si
ngle
76.3
18
.6
5.1
65
.4
27.6
7.
0
67.6
25
.2
7.1
A
ll R
espo
nden
ts76
.6
19.1
4.
3
65.9
26
.9
7.2
67
.8
24.8
7.
5
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all
othe
r mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.3.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
evio
us m
ortg
age
or if
a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, it i
s cl
assi
fied
as a
cas
hout
refin
ance
.
Tabl
e 20
. Sat
isfa
ctio
n w
ith th
e M
ortg
age
Proc
ess,
by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
(Per
cent
age
Dis
trib
utio
n)
Cha
ract
eris
tics
Lend
er o
r Bro
ker
Appl
icat
ion
Clo
sing
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
33
Satisfaction with Mortgage Application Process Overall, 93 percent of respondents reported that they were very or somewhat satisfied with the mortgage application process. Sixty-six percent reported they were very satisfied, and an additional 27 percent were somewhat satisfied. Seven percent were not satisfied. Investors who purchased a house (12 percent), respondents with a credit score below 620 (12 percent), and investor refinancers (11 percent) were more likely to report that they were dissatisfied with the application process. Satisfaction with Mortgage Closing Process Ninety-three percent of respondents reported that they were very or somewhat satisfied with the mortgage closing process. Sixty-eight percent reported that they were very satisfied, and 25 percent reported that they were somewhat satisfied. Eight percent of investors who purchased a house reported being dissatisfied with the closing process. Satisfaction with Mortgage Disclosure Documents Table 21 reflects the overall satisfaction of borrowers with the information in mortgage disclosure documents, the timeliness of the mortgage disclosure documents, and their settlement agent. High percentages of respondents indicated they were very or somewhat satisfied with the disclosure information (96 percent), with their settlement agent (93 percent), and the timeliness of the mortgage disclosure process (92 percent). Borrowers with loans of $50,000 or less and investors were more likely to report that they were not satisfied with disclosures, timeliness, or the settlement agent than other borrowers. 9. Opinions on Homeownership and Financial Responsibility The survey asked borrowers whether they agreed or disagreed with statements about homeownership and financial responsibility. The results are reflected in Table 22. For example, 97 percent of all groups of respondents agreed that owning a home is a good financial investment. Late Payments and Credit Rating Borrowers were asked if they thought that late payment of their mortgage would lower their credit ratings. More than 9 out of 10 respondents agreed that late payments would lower their credit ratings. This opinion was shared by most respondents, ranging from 94 percent for borrowers with incomes $175,000 and above to 89 percent for borrowers with household income less than $50,000. Thirteen percent of respondents agreed with the statement that lenders should not care about late payments, only whether loans are fully repaid. The share that agreed with this statement differed across groups, from 8 percent for investor refinancers to 23 percent of those with a credit score below 620.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
34
Very
Som
ewha
tN
ot a
t All
Very
Som
ewha
tN
ot a
t All
Very
Som
ewha
tN
ot a
t All
Loan
Typ
eP
urch
ase
167
.2
28.2
4.
6
65.2
27
.0
7.8
67
.7
24.5
7.
9
Firs
t-Tim
e H
omeo
wne
r264
.4
31.4
4.
1
61.8
31
.0
7.2
64
.5
27.3
8.
2
Rep
eat H
omeo
wne
r69
.8
25.7
4.
6
67.8
24
.3
7.9
70
.4
22.3
7.
2
Non
-Occ
upan
t Ow
ner
60.8
32
.1
7.1
62
.4
27.9
9.
7
62.4
26
.5
11.2
Ref
inan
ce1
69.7
26
.8
3.5
69
.0
25.1
5.
9
70.2
22
.4
7.4
H
omeo
wne
r Cas
hout
367
.9
28.7
3.
4
68.1
25
.8
6.1
68
.8
24.0
7.
2
Hom
eow
ner R
egul
ar72
.1
24.6
3.
2
71.0
23
.7
5.2
72
.4
20.3
7.
3
Non
-Occ
upan
t Ow
ner
56.7
36
.9
6.4
54
.7
34.3
10
.9
56
.7
33.7
9.
6
Loan
Siz
e$5
0,00
0 or
Les
s71
.1
21.9
7.
0
63.7
25
.8
10.5
65.3
20
.4
14.3
$50,
001
to $
150,
000
70.3
26
.1
3.7
68
.1
25.1
6.
9
69.8
21
.8
8.4
$1
50,0
01 to
$30
0,00
068
.1
28.3
3.
7
67.1
26
.6
6.3
70
.0
23.3
6.
6
Mor
e th
an $
300,
000
66.4
28
.7
4.9
66
.2
26.4
7.
4
66.3
25
.9
7.8
C
redi
t Sco
re2
Low
er th
an 6
2064
.5
31.1
4.
4
63.5
29
.9
6.6
66
.3
26.8
6.
8
620
to 6
79
66.4
30
.3
3.4
64
.0
28.6
7.
3
67.6
24
.7
7.7
68
0 to
719
68
.8
26.1
5.
1
67.2
24
.8
8.0
69
.5
22.9
7.
7
720
or H
ighe
r69
.3
26.7
4.
0
68.3
25
.2
6.4
69
.4
22.9
7.
7
Res
pond
ent A
ge35
Yea
rs o
r You
nger
66.1
30
.2
3.7
64
.9
28.9
6.
3
66.5
27
.0
6.5
36
to 4
569
.6
26.1
4.
3
68.6
24
.0
7.4
68
.6
23.7
7.
7
46 to
55
67.0
28
.7
4.3
65
.7
27.2
7.
0
68.0
23
.9
8.1
56
to 6
571
.9
24.5
3.
6
70.4
24
.1
5.5
73
.1
19.1
7.
9
Old
er th
an 6
5
69.0
26
.5
4.6
66
.8
24.2
9.
0
71.3
19
.6
9.2
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
69
.6
26.4
4.
0
68.3
24
.8
6.9
70
.8
21.8
7.
4
His
pani
c an
d N
on-W
hite
65.1
30
.6
4.3
63
.8
29.5
6.
6
63.8
27
.9
8.4
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
69.3
26
.5
4.2
64
.4
28.8
6.
7
70.0
21
.3
8.7
So
me
Col
lege
68.9
27
.3
3.8
66
.4
26.1
7.
5
69.1
23
.5
7.4
C
olle
ge D
egre
e
69.2
26
.4
4.4
68
.6
24.2
7.
3
69.3
23
.3
7.4
Po
stgr
adua
te
66
.5
29.8
3.
7
66.8
27
.4
5.8
67
.7
24.6
7.
7
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
68
.1
27.9
4.
0
65.0
27
.2
7.8
67
.1
24.3
8.
6
$50,
000
to $
99,9
99
68
.1
27.7
4.
2
66.3
26
.5
7.2
70
.0
22.8
7.
2
$100
,000
to $
174,
999
70
.2
26.0
3.
8
69.5
25
.2
5.4
69
.4
23.9
6.
7
$175
,000
or M
ore
66.0
29
.6
4.3
66
.6
25.5
7.
9
67.4
23
.3
9.3
H
ouse
hold
Typ
eC
oupl
e68
.9
27.1
4.
0
67.3
25
.9
6.8
69
.0
23.3
7.
7
Sing
le
66
.9
28.8
4.
3
66.5
26
.4
7.1
68
.6
24.0
7.
4
All
Res
pond
ents
68.4
27
.6
4.1
67
.1
26.1
6.
9
68.9
23
.5
7.6
So
urce
: Nat
iona
l Sur
vey
of M
ortg
age
Orig
inat
ions
, 201
6. B
ased
on
6,28
5 su
rvey
resp
onse
s.N
otes
: 1. M
ortg
ages
to p
urch
ase
a pr
oper
ty a
re c
lass
ified
as
the
"pur
chas
e" lo
an ty
pe a
nd a
ll ot
her m
ortg
ages
are
cla
ssifi
ed a
s th
e "r
efin
ance
" typ
e.2.
Cre
dit s
core
and
firs
t-tim
e ho
meb
uyer
sta
tus
are
asse
mbl
ed fr
om th
e N
atio
nal M
ortg
age
Dat
abas
e. C
redi
t sco
re fr
om V
anta
ge ra
nges
from
300
to 8
50. A
hom
ebuy
er is
cla
ssifi
ed a
s fir
st-ti
me
if ne
ither
the
resp
onde
nt n
or th
e sp
ouse
is o
lder
than
54
year
s in
age
and
ther
e is
no
evid
ence
of a
prio
r mor
tgag
e in
the
cred
it fil
es.
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Tabl
e 21
. Sat
isfa
ctio
n w
ith In
form
atio
n D
urin
g th
e M
ortg
age
Proc
ess,
by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
(Per
cent
age
Dis
trib
utio
n)
Cha
ract
eris
tics
Dis
clos
ures
Tim
elin
ess
Settl
emen
t Age
nt
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
35
Char
acte
ristic
sO
wni
ng a
Hom
eIs
a G
ood
Fina
ncia
l In
vest
men
t
Mor
tgag
e Le
nder
sG
ener
ally
Tre
atBo
rrow
ers
Wel
l
Late
Pay
men
tsW
ill L
ower
Cred
it Ra
ting
Lend
ers
Shou
ld N
ot C
are
Abou
t Lat
e Pa
ymen
ts,
Onl
y W
heth
er L
oans
Ful
ly R
epai
d
It Is
Oka
y to
Def
ault
If It
Is in
the
Borr
ower
'sFi
nanc
ial I
nter
est
Loan
Typ
ePu
rcha
se1
97.1
83.1
92.1
12.7
6.2
Firs
t-Tim
e H
omeo
wne
r297
.1
84
.0
91
.5
13
.0
6.
5
R
epea
t Hom
eow
ner
97.0
82.5
92.4
12.5
5.8
Non
-Occ
upan
t Ow
ner
98.3
83.4
92.4
12.3
8.2
Ref
inan
ce1
96.5
80.9
93.0
13.2
5.7
Hom
eow
ner C
asho
ut3
97.2
80.2
92.9
12.9
5.7
Hom
eow
ner R
egul
ar95
.9
81
.1
92
.9
14
.0
5.
8
N
on-O
ccup
ant O
wne
r97
.4
83
.6
93
.6
7.
5
4.7
Loan
Siz
e$5
0,00
0 or
Les
s97
.3
85
.0
90
.6
19
.7
8.
2
$5
0,00
1 to
$15
0,00
097
.3
84
.1
90
.9
13
.3
4.
4
$1
50,0
01 to
$30
0,00
097
.2
82
.4
92
.9
12
.0
6.
3
M
ore
than
$30
0,00
095
.5
78
.7
93
.9
13
.5
7.
1
C
redi
t Sco
re2
Low
er th
an 6
2096
.6
87
.8
90
.1
23
.4
9.
5
62
0 to
679
98
.2
78
.0
90
.2
15
.8
5.
7
68
0 to
719
97
.9
81
.7
91
.4
16
.1
5.
5
72
0 or
Hig
her
96.1
82.8
93.7
10.2
5.8
Res
pond
ent A
ge35
Yea
rs o
r You
nger
97.0
82.7
93.7
10.7
7.0
36 to
45
96.5
81.2
93.3
12.8
7.7
46 to
55
96.9
79.9
90.3
13.7
4.5
56 to
65
96.3
84.6
92.7
13.3
5.0
Old
er th
an 6
5
97.5
83.0
91.8
17.1
3.9
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
96.8
84.4
93.2
10.8
5.1
His
pani
c an
d N
on-W
hite
96.8
75.7
90.5
18.7
8.3
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
97
.8
86
.4
89
.7
18
.2
5.
8
So
me
Col
lege
97.5
84.6
91.0
15.2
4.3
Col
lege
Deg
ree
97
.4
81
.7
93
.4
10
.9
6.
8
Po
stgr
adua
te
95
.0
78
.3
93
.8
11
.3
6.
5
H
ouse
hold
Inco
me
Less
than
$50
,000
97.9
82.8
88.7
17.0
5.8
$50,
000
to $
99,9
99
97
.5
83
.3
92
.4
14
.3
4.
7
$1
00,0
00 to
$17
4,99
9
96.5
81.3
93.9
10.1
6.6
$175
,000
or M
ore
94.6
79.6
94.2
10.8
8.0
Hou
seho
ld T
ype
Cou
ple
96.6
81.7
92.2
12.9
6.0
Sing
le
97
.5
83
.0
93
.5
13
.1
5.
8
A
ll R
espo
nden
ts96
.8
82
.0
92
.5
12
.9
6.
0
Tabl
e 22
. Opi
nion
s on
Hom
eow
ners
hip,
Len
ders
, and
Mor
tgag
e Pa
ymen
ts, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
016.
Bas
ed o
n 6,
285
surv
ey re
spon
ses.
Not
es: 1
. Mor
tgag
es to
pur
chas
e a
prop
erty
are
cla
ssifi
ed a
s th
e "p
urch
ase"
loan
type
and
all o
ther
mor
tgag
es a
re c
lass
ified
as
the
"ref
inan
ce" t
ype.
2. C
redi
t sco
re a
nd fi
rst-t
ime
hom
ebuy
er s
tatu
s ar
e as
sem
bled
from
the
Nat
iona
l Mor
tgag
e D
atab
ase.
Cre
dit s
core
from
Van
tage
rang
es fr
om 3
00 to
850
. A h
omeb
uyer
is c
lass
ified
as
first
-tim
e if
neith
er th
e re
spon
dent
nor
the
spou
se is
old
er th
an 5
4 ye
ars
in a
ge a
nd th
ere
is n
o ev
iden
ce o
f a p
rior m
ortg
age
in th
e cr
edit
files
.3.
If a
refin
ance
mor
tgag
e am
ount
is h
ighe
r tha
n th
e pr
evio
us m
ortg
age
or if
a m
ortg
age
is fo
r a p
revi
ousl
y m
ortg
age-
free
prop
erty
, it i
s cl
assi
fied
as a
cas
hout
refin
ance
.
(Per
cent
Who
Agr
eed
with
Eac
h St
atem
ent)
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
36
Mortgage Default and Borrower’s Financial Interest An estimated 6 percent of respondents agreed with the statement that it is okay to default or stop paying if it is in the borrower’s financial interest. Borrowers older than 65 (4 percent) were least likely to agree with this statement. Ten percent of borrowers with a credit score below 620, 8 percent of Hispanic or non-white borrowers, 8 percent of investor homebuyers, and 8 percent of borrowers with mortgages of $50,000 or less reported that they agreed that it is okay to default when it is in the borrower’s financial interest. 10. Recent Changes in Neighborhood Housing The survey asked borrowers’ opinions about changes in the neighborhoods where homes were located for which they had most recently acquired a mortgage. The survey also asked borrowers for their opinions about changes to house prices and the overall desirability of living in the neighborhood. Tables 23 and 24 reflect respondents’ responses. Change in Number of Homes Available for Sale Seventy-one percent of respondents indicated that the number of homes available for sale in their neighborhood experienced little or no change, while 25 percent reported that the number for sale had increased significantly (Table 23). About 4 percent of respondents reported the number of homes for sale declined significantly in their neighborhood. There was little variation across borrower groups in reporting either a significant increase or significant decrease in the number of homes for sale. Investor refinancers (7 percent), borrowers with incomes of $175,000 or more (6 percent), and borrowers with loans above $300,000 (6 percent) reported a decrease in available homes for sale, slightly more than other borrowers reported. Change in Number of Vacant Homes Borrower groups varied in their descriptions of changes in the number of vacant homes in the neighborhood over the last two years. Overall, 4 percent of respondents indicated that the number of vacant homes increased significantly, 85 percent indicated that there was little or no change, and 10 percent reported that the number of vacant homes had declined significantly. About the same share of refinancing borrowers (5 percent) as homebuyers (4 percent) reported a significant increase in vacant homes in their neighborhood over the last two years. Borrowers with a credit score below 680 (8 percent) were slightly more likely to report a significant increase in vacant homes in their neighborhood than other borrowers. Respondents with incomes above $175,000 (2 percent) and borrowers with mortgages above $300,000 (2 percent) were less likely to report a significant increase in vacant homes. Change in Number of Homes for Rent Overall, 7 percent of respondents reported a significant increase in rental housing in their neighborhood, 86 percent of borrowers reported little or no change, and 7 percent reported a significant decrease. Refinancing borrowers (8 percent) were slightly more likely to report a significant increase in the number of rental properties in their neighborhoods than homebuyers (6 percent). Borrowers with a credit score below 620 (11 percent) were more likely to report a
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
37
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o C
hang
eSi
gnifi
cant
ly
Dec
reas
eSi
gnifi
cant
ly
Incr
ease
Littl
e or
No
Cha
nge
Sign
ifica
ntly
D
ecre
ase
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o C
hang
eSi
gnifi
cant
ly
Dec
reas
eLo
an T
ype
Pur
chas
e1
22.7
73
.0
4.3
4.
1
86.3
9.
7
5.9
87
.0
7.2
Fi
rst-T
ime
Hom
eow
ner2
20.9
75
.3
3.8
3.
6
88.7
7.
7
6.0
89
.3
4.7
R
epea
t Hom
eow
ner
23.6
71
.9
4.5
4.
3
85.3
10
.4
5.
7
86.0
8.
4
Non
-Occ
upan
t Ow
ner
24.9
69
.8
5.3
4.
9
81.7
13
.4
6.
3
83.5
10
.2
R
efin
ance
126
.6
69.0
4.
4
4.8
83
.9
11.3
8.2
84
.9
6.9
H
omeo
wne
r Cas
hout
326
.4
69.5
4.
2
5.3
83
.8
10.9
7.4
86
.2
6.4
H
omeo
wne
r Reg
ular
27.4
68
.4
4.3
4.
6
83.9
11
.5
8.
8
84.0
7.
2
Non
-Occ
upan
t Ow
ner
20.5
72
.4
7.0
3.
4
85.2
11
.4
7.
2
84.6
8.
3
Loan
Siz
e$5
0,00
0 or
Les
s17
.9
80.8
1.
3
8.8
84
.7
6.5
5.
8
86.9
7.
3
$50,
001
to $
150,
000
21.9
74
.8
3.3
5.
9
85.7
8.
5
9.2
85
.7
5.1
$1
50,0
01 to
$30
0,00
026
.0
69.6
4.
4
4.8
84
.7
10.6
6.5
86
.3
7.2
M
ore
than
$30
0,00
026
.2
68.1
5.
7
1.7
85
.3
13.0
5.2
85
.7
9.2
C
redi
t Sco
re2
Low
er th
an 6
2028
.2
67.8
4.
0
7.6
83
.0
9.4
10
.6
81.2
8.
3
620
to 6
79
27.4
68
.8
3.8
7.
7
80.5
11
.8
7.
5
83.3
9.
2
680
to 7
19
27.6
68
.8
3.6
5.
4
84.0
10
.5
7.
2
85.5
7.
3
720
or H
ighe
r22
.7
72.6
4.
7
2.9
87
.0
10.1
6.4
87
.4
6.2
R
espo
nden
t Age
35 Y
ears
or Y
oung
er24
.0
71.7
4.
4
3.3
86
.9
9.8
6.
5
88.4
5.
1
36 to
45
27.7
68
.6
3.7
4.
7
86.6
8.
7
6.8
86
.8
6.4
46
to 5
524
.4
71.5
4.
1
6.1
82
.9
11.0
8.5
83
.3
8.3
56
to 6
523
.0
72.0
5.
0
4.0
83
.4
12.6
7.1
84
.7
8.3
O
lder
than
65
21
.7
72.8
5.
5
3.9
84
.4
11.7
5.1
85
.4
9.5
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
23
.0
72.9
4.
2
3.9
86
.6
9.5
6.
1
87.1
6.
7
His
pani
c an
d N
on-W
hite
29.2
66
.0
4.8
5.
8
81.0
13
.1
9.
3
82.8
7.
9
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
24
.7
71.0
4.
3
7.3
81
.5
11.2
8.2
83
.5
8.4
So
me
Col
lege
25.6
70
.6
3.8
6.
3
83.3
10
.4
7.
6
84.9
7.
5
Col
lege
Deg
ree
26
.1
69.6
4.
3
3.7
85
.0
11.3
7.2
86
.3
6.6
Po
stgr
adua
te
21
.8
73.3
4.
9
2.4
88
.6
9.1
5.
7
87.6
6.
8
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
21
.8
73.5
4.
7
4.6
84
.8
10.6
6.4
86
.4
7.2
$5
0,00
0 to
$99
,999
25.8
71
.2
2.9
5.
9
84.5
9.
7
8.2
85
.5
6.4
$1
00,0
00 to
$17
4,99
9
25.7
69
.4
4.9
3.
9
85.0
11
.1
7.
3
85.0
7.
8
$175
,000
or M
ore
22.9
71
.0
6.1
1.
9
87.2
10
.9
4.
3
88.4
7.
3
Hou
seho
ld T
ype
Cou
ple
25.0
70
.7
4.3
4.
3
85.6
10
.1
6.
3
86.7
6.
9
Sing
le
23
.5
72.2
4.
4
4.8
83
.7
11.5
8.9
83
.6
7.5
A
ll R
espo
nden
ts24
.6
71.0
4.
3
4.4
85
.1
10.4
7.0
86
.0
7.1
So
urce
: Nat
iona
l Sur
vey
of M
ortg
age
Orig
inat
ions
, 201
6. B
ased
on
6,28
5 su
rvey
resp
onse
s.N
otes
: 1. M
ortg
ages
to p
urch
ase
a pr
oper
ty a
re c
lass
ified
as
the
"pur
chas
e" lo
an ty
pe a
nd a
ll ot
her m
ortg
ages
are
cla
ssifi
ed a
s th
e "r
efin
ance
" typ
e.2.
Cre
dit s
core
and
firs
t-tim
e ho
meb
uyer
sta
tus
are
asse
mbl
ed fr
om th
e N
atio
nal M
ortg
age
Dat
abas
e. C
redi
t sco
re fr
om V
anta
ge ra
nges
from
300
to 8
50. A
hom
ebuy
er is
cla
ssifi
ed a
s fir
st-ti
me
if ne
ither
the
resp
onde
nt n
or th
e sp
ouse
is o
lder
than
54
year
s in
age
and
ther
e is
no
evid
ence
of a
prio
r mor
tgag
e in
the
cred
it fil
es.
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Tabl
e 23
. Cha
nges
in H
ousi
ng A
vaila
bilit
y in
Nei
ghbo
rhoo
d ov
er L
ast C
oupl
e Ye
ars,
by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
(Per
cent
age
Dis
trib
utio
n)
Cha
ract
eris
tics
Num
ber o
f Hom
es fo
r Sal
eN
umbe
r of V
acan
t Hom
esN
umbe
r of H
omes
for R
ent
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
38
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o C
hang
eSi
gnifi
cant
ly
Dec
reas
eSi
gnifi
cant
ly
Incr
ease
Littl
e or
No
Cha
nge
Sign
ifica
ntly
D
ecre
ase
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o C
hang
eSi
gnifi
cant
ly
Dec
reas
eLo
an T
ype
Pur
chas
e1
3.6
85
.5
10.9
37.1
60
.5
2.5
37
.0
61.2
1.
9
Firs
t-Tim
e H
omeo
wne
r23.
4
90.1
6.
4
34.2
63
.8
2.1
32
.9
64.8
2.
3
Rep
eat H
omeo
wne
r3.
2
83.8
12
.9
38
.2
59.1
2.
7
39.2
59
.3
1.5
N
on-O
ccup
ant O
wne
r6.
8
76.3
16
.9
42
.6
54.7
2.
7
39.7
58
.0
2.3
R
efin
ance
15.
0
78.4
16
.6
54
.2
41.5
4.
4
41.2
56
.4
2.4
H
omeo
wne
r Cas
hout
35.
1
78.6
16
.3
57
.1
39.2
3.
7
41.9
55
.9
2.1
H
omeo
wne
r Reg
ular
5.1
78
.6
16.3
52.3
42
.9
4.8
41
.0
56.4
2.
6
Non
-Occ
upan
t Ow
ner
4.0
74
.3
21.7
52.0
42
.9
5.1
38
.2
59.9
1.
9
Loan
Siz
e$5
0,00
0 or
Les
s6.
2
85.2
8.
6
21.2
74
.2
4.7
18
.6
70.6
10
.8
$5
0,00
1 to
$15
0,00
06.
0
83.2
10
.9
33
.1
61.8
5.
1
27.4
69
.4
3.2
$1
50,0
01 to
$30
0,00
04.
1
81.4
14
.5
47
.4
49.7
2.
9
42.2
56
.2
1.7
M
ore
than
$30
0,00
02.
4
81.5
16
.1
58
.9
39.1
2.
0
49.7
49
.6
0.7
C
redi
t Sco
re2
Low
er th
an 6
206.
7
79.1
14
.2
37
.7
59.1
3.
1
36.9
60
.0
3.1
62
0 to
679
6.
4
78.9
14
.8
43
.6
52.3
4.
1
37.1
59
.3
3.7
68
0 to
719
4.
5
82.3
13
.2
44
.0
52.7
3.
3
39.5
57
.8
2.7
72
0 or
Hig
her
3.4
83
.3
13.4
47.0
49
.7
3.3
39
.7
58.9
1.
4
Res
pond
ent A
ge35
Yea
rs o
r You
nger
2.9
86
.3
10.9
43.5
54
.6
1.9
37
.9
59.8
2.
3
36 to
45
4.3
83
.0
12.7
46.4
50
.5
3.0
40
.0
57.9
2.
0
46 to
55
6.3
78
.7
15.0
44.4
51
.7
3.9
37
.1
61.0
1.
9
56 to
65
4.8
80
.0
15.2
47.4
47
.7
4.9
39
.1
59.0
2.
0
Old
er th
an 6
5
2.8
79
.3
17.9
46.6
48
.5
4.9
43
.7
53.7
2.
6
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
4.4
83
.3
12.3
44.2
52
.3
3.5
38
.3
59.6
2.
1
His
pani
c an
d N
on-W
hite
3.9
78
.8
17.3
48.6
48
.2
3.2
41
.1
56.8
2.
1
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
6.
7
80.2
13
.1
37
.3
57.0
5.
7
29.5
66
.5
4.1
So
me
Col
lege
5.4
79
.7
14.9
41.2
54
.5
4.3
37
.2
59.7
3.
1
Col
lege
Deg
ree
4.
3
81.3
14
.4
48
.5
48.9
2.
6
40.5
57
.9
1.5
Po
stgr
adua
te
2.
2
86.2
11
.6
48
.4
48.9
2.
7
42.6
56
.1
1.2
H
ouse
hold
Inco
me
Less
than
$50
,000
5.4
83
.1
11.5
31.5
63
.7
4.8
29
.9
66.3
3.
8
$50,
000
to $
99,9
99
5.
0
82.7
12
.3
41
.0
55.1
4.
0
35.4
62
.0
2.6
$1
00,0
00 to
$17
4,99
9
3.8
80
.3
15.9
53.0
44
.4
2.7
44
.5
54.2
1.
3
$175
,000
or M
ore
2.4
82
.8
14.8
56.1
41
.9
1.9
47
.0
52.3
0.
7
Hou
seho
ld T
ype
Cou
ple
4.3
81
.9
13.8
46.6
50
.3
3.1
40
.0
58.0
2.
0
Sing
le
4.
4
82.4
13
.2
41
.8
54.0
4.
2
36.1
61
.3
2.6
A
ll R
espo
nden
ts4.
3
82.1
13
.6
45
.4
51.2
3.
4
39.0
58
.9
2.1
So
urce
: Nat
iona
l Sur
vey
of M
ortg
age
Orig
inat
ions
, 201
6. B
ased
on
6,28
5 su
rvey
resp
onse
s.N
otes
: 1. M
ortg
ages
to p
urch
ase
a pr
oper
ty a
re c
lass
ified
as
the
"pur
chas
e" lo
an ty
pe a
nd a
ll ot
her m
ortg
ages
are
cla
ssifi
ed a
s th
e "r
efin
ance
" typ
e.2.
Cre
dit s
core
and
firs
t-tim
e ho
meb
uyer
sta
tus
are
asse
mbl
ed fr
om th
e N
atio
nal M
ortg
age
Dat
abas
e. C
redi
t sco
re fr
om V
anta
ge ra
nges
from
300
to 8
50. A
hom
ebuy
er is
cla
ssifi
ed a
s fir
st-ti
me
if ne
ither
the
resp
onde
nt n
or th
e sp
ouse
is o
lder
than
54
year
s in
age
and
ther
e is
no
evid
ence
of a
prio
r mor
tgag
e in
the
cred
it fil
es.
3. If
a re
finan
ce m
ortg
age
amou
nt is
hig
her t
han
the
prev
ious
mor
tgag
e or
if a
mor
tgag
e is
for a
pre
viou
sly
mor
tgag
e-fre
e pr
oper
ty, i
t is
clas
sifie
d as
a c
asho
ut re
finan
ce.
Tabl
e 24
. Cha
nges
in N
eigh
borh
ood
Des
ireab
ility
ove
r Las
t Cou
ple
Year
s, b
y Lo
an a
nd D
emog
raph
ic C
hara
cter
istic
s(P
erce
ntag
e D
istr
ibut
ion)
Cha
ract
eris
tics
Num
ber o
f For
eclo
sure
s or
Sho
rt S
ales
Hou
se P
rices
Ove
rall
Des
ireab
lity
of L
ivin
g Th
ere
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
39
significant increase in the number of rental properties in their neighborhoods than other borrower groups. Change in Number of Foreclosures and Short Sales As reflected on Table 24, about 82 percent of respondents indicated that the number of foreclosures and short sales in their neighborhood had little or no change over the last couple of years. Four percent of respondents reported a significant increase, while 14 percent reported a significant decrease. About the same share of refinancing borrowers (5 percent) as homebuyers (4 percent) reported an increase in the number of foreclosures. Investor homebuyers (7 percent), borrowers with credit scores below 620 (7 percent), and borrowers with a high school education or less (7 percent) reported an increase in the number of foreclosures. Change in House Prices Fifty-one percent of respondents reported that there was little or no change to house prices in their neighborhood over the last couple of years, while 45 percent reported a significant increase in prices and 3 percent reported a significant decline in house prices in their neighborhood. However, respondents who took out mortgages above $300,000 (59 percent), cashout refinancers (57 percent), and borrowers with incomes above $175,000 (56 percent) were more likely to report a significant increase in house price over the last couple years than were other respondents. Borrowers who purchased a home, including investors and first-time homebuyers, were about as likely to report a significant decline in house prices (3 percent) as respondents who refinanced a mortgage (4 percent). Change in Desirability of Neighborhood Borrowers were asked if the overall desirability of living in their neighborhood had changed over the last couple of years. Over 59 percent of respondents indicated that there had been little or no change in desirability, 39 percent reported a significant increase in desirability, and 2 percent reported a significant decline. Borrowers with loans greater than $300,000 (50 percent) and borrowers with household income greater than $175,000 (47 percent) were far more likely to indicate that the desirability of their neighborhood had increased significantly. 11. Expectations on Neighborhood House Prices and Neighborhood
Desirability Borrowers were asked what they think will happen to prices of homes in their neighborhood over the next couple of years. As shown in Table 25, 82 percent of all respondents expect house prices to increase, with 60 percent expecting that prices will increase a little and 21 percent expecting that prices will increase a lot. About 16 percent of respondents indicated that prices would remain about the same over the next couple of years, and about 2 percent of respondents expect prices to decrease. The percentage of borrowers who reportedly expect prices to increase generally rose with loan size and borrower income. The percentage of borrowers expecting home prices to remain about the same, and the percentage of borrowers expecting price declines
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
40
Increasea Lot
Increasea Little
Remain About the Same
Decreasea Little
Decreasea Lot
Loan TypePurchase 1 20.5 61.9 16.4 1.0 0.2
First-Time Homeowner2 20.0 59.9 18.7 1.1 0.3 Repeat Homeowner 20.8 63.3 15.0 0.9 0.1 Non-Occupant Owner 21.0 61.1 16.5 1.0 0.4
Refinance 1 22.1 58.6 16.4 2.3 0.6 Homeowner Cashout3 22.4 58.3 15.9 2.3 1.1 Homeowner Regular 22.4 58.1 16.9 2.4 0.2 Non-Occupant Owner 16.6 67.3 14.6 1.5 0.0
Loan Size$50,000 or Less 12.0 43.2 42.7 0.6 1.6 $50,001 to $150,000 15.6 57.6 23.9 2.4 0.5 $150,001 to $300,000 23.0 62.3 13.1 1.2 0.3 More than $300,000 26.1 61.8 10.5 1.5 0.1
Credit Score 2
Lower than 620 24.5 51.3 20.4 3.4 0.4 620 to 679 22.8 56.6 17.7 1.7 1.2 680 to 719 22.8 57.2 18.5 1.1 0.4 720 or Higher 20.1 63.1 15.1 1.6 0.1
Respondent Age35 Years or Younger 19.0 61.4 17.8 1.2 0.5 36 to 45 21.0 60.6 15.6 2.5 0.3 46 to 55 22.5 59.0 16.6 1.7 0.3 56 to 65 22.2 61.1 15.1 1.3 0.3 Older than 65 23.6 58.2 16.5 1.2 0.5
Respondent Race/EthnicityNon-Hispanic White 19.1 62.1 17.0 1.6 0.3 Hispanic and Non-White 27.2 55.5 14.8 1.8 0.6
Respondent EducationHigh School or Less 17.5 54.1 25.4 2.4 0.6 Some College 21.7 57.6 17.9 1.9 0.9 College Degree 22.8 61.8 13.9 1.4 0.1 Postgraduate 20.4 63.4 14.8 1.4 0.1
Household IncomeLess than $50,000 17.8 52.7 26.2 2.0 1.3 $50,000 to $99,999 21.2 59.7 17.1 1.7 0.3 $100,000 to $174,999 22.7 63.1 12.7 1.4 0.1 $175,000 or More 22.3 64.6 11.5 1.6 0.0
Household TypeCouple 21.8 60.4 16.0 1.6 0.2 Single 19.7 60.1 17.5 1.9 0.8
All Respondents 21.3 60.3 16.4 1.6 0.4
2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Table 25. Expectations for House Prices in Neighborhood over Next Couple of Years,by Loan and Demographic Characteristics(Percentage Distribution)
Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.
Characteristics Prices of Similar Homes in Neighborhood Will
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
41
generally decreased with loan size and income. There was generally little variation in expectations on neighborhood house prices across other groups of borrowers. Borrowers were also asked whether they expect the overall desirability of living in their neighborhood to change in the next couple of years. Table 26 reflects that about 52 percent of respondents indicated that they expected the overall desirability of their neighborhood to stay about the same, 47 percent of respondents expected neighborhood desirability to increase, and 2 percent of respondents expected neighborhood desirability to decrease. Homebuyers (50 percent) were more likely to expect neighborhood desirability to increase than refinancing borrowers (43 percent). Borrowers with loans of $50,000 or less, borrowers with credit scores below 680, and borrowers with household income of less than $50,000 were more likely than other groups of borrowers to expect that neighborhood desirability would decrease. 12. Financial Expectations The survey asked borrowers how likely they were to encounter events in the next couple of years that might constrain their household finances. Specifically, the survey asked whether it was very, somewhat, or not at all likely over the next couple of years that the respondent would experience any of the following: a) retire; b) be laid off, become unemployed, or be forced to reduce hours of work; c) have difficulties making mortgage payments; or d) experience some other personal financial crisis. Table 27 reflects responses to these questions. Expectations of Retirement Seventeen percent of respondents indicated that they were very or somewhat likely to retire in the next couple of years. About 21 percent of refinancing borrowers reported being very or somewhat likely to retire in the near term, compared to 13 percent of homebuyers. Respondents who were older than 56 were at least twice as likely to report they were very or somewhat likely to retire in the next couple of years than were those aged 46 to 55 years old, while 4 percent of respondents aged 36 to 45 years old and 1 percent of respondents aged 35 years or younger indicated that they were very or somewhat likely to retire in the next couple of years. Two percent of first-time homebuyers indicated they were very or somewhat likely to retire in the next couple of years and 29 percent of investor purchasers expressed that they were very or somewhat likely to retire in the near term. Expectations of Financial Difficulties Nine percent of respondents reported that they were very or somewhat likely to have difficulties making their mortgage payments in the next couple of years. Eleven percent of refinancing borrowers reported that they were very or somewhat likely to have difficulties making mortgage payments in the next couple of years compared to 8 percent of homebuyers. Respondents with household income less than $50,000 a year (16 percent), credit scores 620 and below (16 percent), or high school education or less (16 percent) were more likely to believe they could have difficulties making mortgage payments than other respondents. Respondents with postgraduate degrees (8 percent), credit scores of 720 or higher (7 percent), or household income
NMDB® Technical Report 6.0____________________________________________________________________________________A Profile of 2016 Mortgage Borrowers
42
Become More Desireable Stay About The Same Become Less DesirableLoan Type
Purchase 1 50.4 48.4 1.3 First-Time Homeowner2 49.8 48.2 2.0 Repeat Homeowner 50.6 48.7 0.7 Non-Occupant Owner 51.3 46.9 1.8
Refinance 1 42.8 54.8 2.4 Homeowner Cashout3 42.7 54.5 2.7 Homeowner Regular 42.5 55.2 2.3 Non-Occupant Owner 46.8 51.9 1.3
Loan Size$50,000 or Less 22.1 75.0 2.9 $50,001 to $150,000 35.9 61.4 2.8 $150,001 to $300,000 49.5 48.9 1.6 More than $300,000 57.4 41.8 0.9
Credit Score 2
Lower than 620 46.1 50.6 3.3 620 to 679 46.7 50.2 3.1 680 to 719 45.5 53.0 1.5 720 or Higher 47.1 51.6 1.4
Respondent Age35 Years or Younger 52.2 45.8 2.0 36 to 45 47.1 51.1 1.7 46 to 55 44.9 53.5 1.5 56 to 65 41.2 56.9 1.9 Older than 65 43.8 54.3 1.9
Respondent Race/EthnicityNon-Hispanic White 44.6 53.6 1.8 Hispanic and Non-White 52.3 45.7 1.9
Respondent EducationHigh School or Less 35.2 62.5 2.3 Some College 42.9 53.9 3.2 College Degree 49.4 49.5 1.0 Postgraduate 51.5 47.2 1.3
Household IncomeLess than $50,000 39.0 57.6 3.4 $50,000 to $99,999 43.2 54.8 2.0 $100,000 to $174,999 50.9 47.9 1.2 $175,000 or More 55.2 43.9 0.9
Household TypeCouple 48.2 50.2 1.6 Single 42.4 55.1 2.4
All Respondents 46.7 51.5 1.8 Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Table 26. Expectations for Neighborhood Desirability over Next Couple of Years,by Loan and Demographic Characteristics(Percentage Distribution)
Characteristics Living in the Neighborhood Will
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Characteristics Retirement DifficultiesMaking Mortgage
Payments
Unemployment, Layoff, or Forced Hour Reduction
Some Other Personal
Financial CrisisLoan Type
Purchase 1 13.3 8.0 11.3 12.6 First-Time Homeowner2 2.4 8.3 11.2 13.3 Repeat Homeowner 18.2 8.0 11.3 12.1 Non-Occupant Owner 28.6 7.5 11.4 12.7
Refinance 1 20.9 10.7 12.5 15.7 Homeowner Cashout3 21.7 13.4 12.6 17.5 Homeowner Regular 20.1 9.0 12.8 14.4 Non-Occupant Owner 24.7 8.9 8.1 15.9
Loan Size$50,000 or Less 23.7 9.5 7.4 14.4 $50,001 to $150,000 18.8 10.5 11.1 16.6 $150,001 to $300,000 16.5 9.2 11.8 13.8 More than $300,000 15.1 8.1 13.2 11.6
Credit Score 2
Lower than 620 14.1 16.0 11.2 19.9 620 to 679 16.7 13.2 11.8 17.4 680 to 719 15.5 11.7 11.6 16.1 720 or Higher 17.8 6.9 12.0 12.0
Respondent Age35 Years or Younger 1.1 7.6 10.4 11.5 36 to 45 4.5 8.6 13.7 12.5 46 to 55 18.0 9.7 13.2 16.4 56 to 65 49.2 11.3 13.5 16.9 Older than 65 36.8 12.1 5.7 15.3
Respondent Race/EthnicityNon-Hispanic White 18.0 9.4 11.7 14.0 Hispanic and Non-White 14.4 9.3 12.3 14.4
Respondent EducationHigh School or Less 19.9 15.5 13.4 17.2 Some College 20.8 10.5 11.7 15.0 College Degree 14.1 7.7 10.9 12.7 Postgraduate 16.0 7.9 12.7 13.8
Household IncomeLess than $50,000 17.6 16.3 11.2 19.7 $50,000 to $99,999 16.5 10.4 12.1 15.3 $100,000 to $174,999 17.0 6.7 12.0 12.3 $175,000 or More 17.6 4.4 11.6 8.8
Household TypeCouple 17.5 9.3 12.5 13.8 Single 15.4 9.4 9.9 14.9
All Respondents 17.0 9.3 11.9 14.1
3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
Table 27. Expectations About Future Financial Situation, by Loan and Demographic Characteristics(Percent Very or Somewhat Likely to Face Each Situation in the Next Couple of Years)
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.
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of $175,000 or more (4 percent) were less likely to believe they would have difficulties in paying their mortgage in the next couple of years. Expectations of Layoff or Unemployment Nearly 12 percent of respondents indicated that it was very or somewhat likely that they might experience a layoff, unemployment, or forced reduction in hours over the next couple of years. Refinancing investors (8 percent), those borrowing $50,000 or less (7 percent), and those older than 65 years (6 percent) were less likely to expect these events than were other respondents. Fourteen percent of all respondents indicated that it was very or somewhat likely that they would face some other personal financial crisis in the next couple of years. Respondents with household income of less than $50,000 (20 percent) and respondents with credit scores below 620 (20 percent) were most likely to report that they were very or somewhat likely to face some other personal financial crisis. Expectation of Ability to Pay Bills without Borrowing Table 28 reflects that about 86 percent of respondents indicated that they were very or somewhat likely to pay their bills for the next three months without borrowing. Respondents with household income of $175,000 or more (94 percent), investor homebuyers (91 percent), respondents with credit score of 720 or above (91 percent), and respondents with loans of more than $300,000 (90 percent) were more likely than other respondents to indicate they were very or somewhat likely to pay their bills for the next three months without borrowing. Respondents with a credit score below 620 (73 percent) and those with a credit score between 620 and 679 (76 percent) were the least likely to report that they were very or somewhat likely to pay their bills for the next three months without borrowing. Expectation of Receiving Financial Help from Friends or Family Sixty-one percent of respondents indicated that they were very or somewhat likely to get significant financial help from family or friends if they suffered an unexpected financial crisis. More homebuyers (65 percent) believed they were very or somewhat likely to get significant help compared to refinancing borrowers (57 percent). Forty-two percent of respondents aged 56 to 65 and 38 percent of respondents older than 65 reported that they were very or somewhat likely to get significant help from family or friends, while 79 percent of respondents aged 35 years or younger and 77 percent of first-time homebuyers reported that they were very or somewhat likely to get financial help from their family or friends. Fifty-five percent of respondents felt that it was very or somewhat likely that they could significantly increase their income if they experienced a financial shock. More homebuyers (59 percent) reported that they were very or somewhat likely to significantly increase their income than refinancing borrowers (51 percent). First-time homebuyers and younger respondents were more likely to indicate that they could significantly increase their income than other respondents. Sixty-four percent of first-time homebuyers and 65 percent of respondents 35 years or younger reported that they were very or somewhat likely to significantly increase their income. Older respondents were less likely to indicate they could significantly increase their income than other
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Characteristics Pay Bills for the Next Three Months
Without Borrowing
Get Significant Financial Help from Family or Friends
Borrow Enough Money from a Bank
or Credit Union
Increase Income Significantly
Loan TypePurchase 1 86.4 65.0 64.7 58.5
First-Time Homeowner2 81.8 77.0 67.9 63.8 Repeat Homeowner 88.8 59.2 62.3 55.8 Non-Occupant Owner 91.3 50.6 66.6 52.6
Refinance 1 85.0 56.9 65.1 51.0 Homeowner Cashout3 85.1 54.7 63.0 49.5 Homeowner Regular 84.7 58.5 65.9 51.5 Non-Occupant Owner 87.1 55.1 70.8 57.3
Loan Size$50,000 or Less 76.3 45.7 54.9 35.9 $50,001 to $150,000 81.9 59.6 62.3 54.2 $150,001 to $300,000 86.4 60.3 65.3 55.4 More than $300,000 90.1 65.3 68.1 56.3
Credit Score 2
Lower than 620 73.2 51.5 52.8 58.8 620 to 679 76.4 57.6 61.3 55.3 680 to 719 80.4 62.1 62.0 54.7 720 or Higher 91.2 62.8 67.9 54.3
Respondent Age35 Years or Younger 84.4 79.3 74.0 65.0 36 to 45 85.7 67.7 66.5 59.1 46 to 55 84.4 55.2 62.2 55.5 56 to 65 88.1 42.3 56.6 44.5 Older than 65 88.3 38.8 56.0 32.3
Respondent Race/EthnicityNon-Hispanic White 86.4 62.0 67.7 54.1 Hispanic and Non-White 84.0 58.5 57.2 57.0
Respondent EducationHigh School or Less 77.9 51.1 54.3 49.7 Some College 83.4 54.6 61.3 52.2 College Degree 87.3 65.5 67.6 56.6 Postgraduate 89.0 65.2 69.0 57.0
Household IncomeLess than $50,000 77.3 56.9 54.4 50.3 $50,000 to $99,999 83.4 60.4 63.4 54.3 $100,000 to $174,999 88.7 62.8 69.1 56.3 $175,000 or More 94.3 63.6 71.3 58.2
Household TypeCouple 85.9 61.3 65.3 55.4 Single 85.0 60.3 63.8 53.2
All Respondents 85.7 61.1 64.9 54.8
3. If a refinance mortgage amount is higher than the previous mortgage or if a mortgage is for a previously mortgage-free property, it is classified as a cashout refinance.
(Percent Very or Somewhat Likely to Perform Each Action in the Next Couple of Years)Table 28. Ability to Weather an Adverse Financial Shock, by Loan and Demographic Characteristics
Source: National Survey of Mortgage Originations, 2016. Based on 6,285 survey responses.Notes: 1. Mortgages to purchase a property are classified as the "purchase" loan type and all other mortgages are classified as the "refinance" type.2. Credit score and first-time homebuyer status are assembled from the National Mortgage Database. Credit score from Vantage ranges from 300 to 850. A homebuyer is classified as first-time if neither the respondent nor the spouse is older than 54 years in age and there is no evidence of a prior mortgage in the credit files.
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respondents. Forty-four percent of respondents aged 56 to 65 years old and 32 percent of respondents older than 65 reported they were very or somewhat likely to significantly increase their income if they experienced a financial shock.
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Appendix. About the National Mortgage Database Project The National Mortgage Database is a multiyear project being jointly undertaken by the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB). The project is designed to provide comprehensive information about the U.S. mortgage market based on a 5 percent sample of residential mortgages. The project has three primary components: (1) the NMDB®8, (2) the quarterly NSMO9, and (3) the annual American Survey of Mortgage Borrowers (ASMB). The NMDB® project will enable FHFA to meet the statutory requirements of section 1324(c) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008, to conduct a monthly mortgage market survey. Specifically, FHFA must, through a survey of the mortgage market, collect data on the characteristics of individual mortgages, including subprime and nontraditional mortgages, information on the creditworthiness of borrowers, and whether subprime and nontraditional borrowers would have qualified for prime lending. For CFPB, the NMDB® project will support policymaking and research efforts and help identify and understand emerging mortgage and housing market trends. CFPB expects to use the NMDB®, among other purposes, in support of the market monitoring called for by the Dodd- Frank Wall Street Reform and Consumer Protection Act, including understanding how mortgage debt affects consumers. FHFA and CFPB examined existing databases and determined that none of them fully meet the criteria necessary to achieve the above objectives. The NMDB®, when fully complete, will be a de-identified, loan-level database of closed-end first-lien residential mortgages. It will: (1) be representative of the market as a whole; (2) contain comprehensive information on the terms and performance of mortgages, as well as characteristics of the associated borrowers and property; (3) be continually updated; (4) contain historical information from before the financial crisis of 2008; and (5) provide a sampling frame for the NSMO and ASMB. The core data in the NMDB® are drawn from a random 1-in-20 sample of all closed-end first-lien mortgage files outstanding at any time between January 1998 and June 2012 and maintained by Experian, one of the three national credit repositories. A random 1-in-20 sample of mortgages newly reported to Experian is added each quarter. Mortgages are followed in the NMDB® database until they terminate through prepayment (including refinancing), foreclosure, or maturity. De-identified information from credit repository files related to each borrower associated with the mortgages in the NMDB® sample is collected from at least one year prior to origination to one year after termination of the mortgage. The information on borrowers and loans available for analysis is de-identified and does not include directly identifiable information, such as borrower name, address, or Social Security number. The NSMO is a component of the NMDB® project. The survey is designed to complement the NMDB® by providing information, particularly related to mortgage shopping, that is not
8 See National Mortgage Database Technical Report 1.2 for more details. 9 See National Survey of Mortgage Borrowers Technical Report 2.3 for more details.
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otherwise available in the database. To achieve this objective, the NSMO draws its sample from mortgages that are part of the NMDB®, which samples from the same target universe. The NSMO survey is voluntary and its target universe is newly originated closed-end first-lien residential mortgages and the associated borrowers. The NSMO is administered by Westat under a subcontract with Experian. Fair Credit Reporting Act (FCRA) rules require that the survey process be administered through Experian in order to maintain consumer privacy because it utilizes borrower names and addresses drawn from credit repository records. The NSMO sample is selected each quarter from the mortgage loans newly added to the NMDB® sample that quarter. After the sample is selected, Experian eliminates any potential respondents who have opted out of previous surveys or are deemed not to have useable addresses or names. Industry guidance (Metro 2® Industry Standards for Credit Reporting) requires that servicers must supply a billing address for each borrower on a trade line (including mortgages). Experian generally uses these borrower billing addresses as the survey mailing addresses. Where there are multiple addresses and borrowers associated with a survey sample loan, Table A-1 reflects the rules for selecting the borrower(s) and address to which the survey is mailed. The survey is sent to no more than two borrowers who share a common address. FHFA and CFPB never receive the names or addresses chosen for the survey. Only Experian and Westat, as Experian’s subcontractor, have access to this information.
Number of Borrowers
Same or Different Address Resulting Survey Recipient
1 Not Applicable One borrower with Experian’s associated best address
2 Same Two borrower names with one common best address
2 Different The one borrower and associated best address with the lowest number of open mortgages
>2 Same Two borrowers with one common best address that has the highest number of trade lines reported
>2 Different The one borrower and associated best address with the lowest number of open mortgages
Table A-1. Rule for Best Address
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The survey implementation strategy includes four respondent contacts over a seven-week period:
Week 1 Printed questionnaire, cover letter, and cash incentive (entire survey sample population)
Week 2 1st reminder letter (entire survey sample population) Week 5 2nd reminder letter, printed questionnaire, and additional cash incentive
(sampled borrowers who have not responded by Week 4) Week 7 3rd reminder letter, which includes the due date for returning the
questionnaire, to close the communication loop (sampled borrowers who have not responded by Week 6)
Participation in the survey is voluntary, and respondents are assured the confidentiality of their responses. The first and the third contacts contain a printed survey questionnaire and a five dollar cash incentive which respondents are free to keep regardless of whether they return the questionnaire. The mailings and printed questionnaires detail how respondents can also complete the survey online in either English or Spanish using instructions and a unique “survey PIN number” provided in the questionnaire packet. To date, nearly one third of survey responses have been completed online. Mail surveys are processed for four weeks after the third reminder letter, so the field period comprises 12 weeks in total. It takes between five and six weeks to draw the new NMDB® sample, identify and combine duplicative records, draw the NSMO sample, process it at Experian, and print the survey materials. Thus, the survey cycle typically begins six weeks after the end of a quarter and extends about four weeks into the next quarter. All returned questionnaires and any non-delivered mail are sent directly to Westat and not to FHFA, CFPB, or Experian. All survey responses received by Westat are purged of any information related to the name of the borrower, address of the borrower, or name of any financial institution. This is done to maintain the de-identified confidential nature of the data and to ensure that the survey responses cannot be connected to a name or address. During the first eight weeks of each cycle, Experian maintains a NSMO call center to address any questions by respondents. This call center also allows respondents to “opt out” of the survey and future surveys. Both FHFA and CFPB describe the survey on their websites so that respondents can independently verify the legitimacy of the survey. The agency officials signing the cover letter (Sandra Thompson at FHFA and David Silberman at CFPB) are identified on the websites as senior employees of their respective agencies. Once the active phase of a survey cycle ends, it takes about 25 days for Westat to scan and edit returned questionnaires, combine them with on-line responses, and create an electronic data file. This file is delivered to the NMDB® development staff through Experian. It takes an additional
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eight weeks to complete additional processing of survey responses, to create preliminary sample weights, and to assemble a preliminary user data file. The timeline described above applies to each quarterly data release. Because some loans take longer than six months to be reported to the repositories, a data file fully representative of a calendar year will generally not be available until December of the following year.
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