Glossary
Last reviewed
Each term has one meaning on this site. The first text of a term is a plain explanation. The quotation is the agency's own text, with a link to its page.
- Action taken
What the lender did with an application or a record. HMDA gives eight codes: 1 loan originated, 2 approved but not accepted, 3 denied, 4 withdrawn, 5 file closed for incompleteness, 6 purchased loan, 7 and 8 preapproval requests.
The action taken on the covered loan or application
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Application
A request for a mortgage. This site counts the records with action taken 1 to 5 as applications. A purchased loan (6) and a preapproval request (7, 8) are not in the count.
Application means an oral or written request for a covered loan that is made in accordance with procedures used by a financial institution for the type of credit requested.
Source: CFPB, Regulation C, 12 CFR 1003.2, copied on .
- Average prime offer rate (APOR)
A benchmark rate for a comparable loan, made from the rates that a set of lenders offer for loans with low-risk pricing. The rate spread of a loan is measured from it.
“Average prime offer rate” means an annual percentage rate that is derived from average interest rates and other loan pricing terms currently offered to consumers by a set of creditors for mortgage loans that have low-risk pricing characteristics. The Bureau publishes tables of average prime offer rates by transaction type at least weekly and also publishes the methodology it uses to derive these rates.
Source: CFPB, Regulation C, 12 CFR 1003.4, copied on .
- Cash-out refinancing
A refinancing in which the lender counts the loan as a cash-out loan by its own rules. HMDA loan purpose 32.
32 - Cash-out refinancing
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Conventional loan
A loan that no federal agency insures or guarantees. HMDA loan type 1.
1 - Conventional (not insured or guaranteed by FHA, VA, RHS, or FSA)
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Denial
An application that the lender denied. HMDA action taken 3. A withdrawn application and a file closed for incompleteness are not denials.
A financial institution reports that the application was denied if it made a credit decision denying the application before an applicant withdraws the application or the file is closed for incompleteness.
Source: CFPB, Regulation C, 12 CFR 1003.4, copied on .
- Denial rate
The denied applications divided by the decided applications of the lender. A decided application has action taken 1, 2 or 3. This is the calculation of this site, not a HMDA field.
No agency definition of this term is on file. The explanation is this site's own text.
- Denial reason
The reason that the lender codes for a denial. A lender can code up to four reasons. This site counts the first reason only.
The principal reason, or reasons, for denial
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Discount points
Money that the borrower pays the lender at closing to lower the interest rate of the loan. HMDA gives the amount in dollars. The site shows the median of the loans that report an amount.
The points paid, in dollars, to the creditor to reduce the interest rate
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Exempt
The word that a lender with a partial exemption files in place of a value, for example in place of the interest rate. This site shows no median for a lender that files "Exempt" for most of its loans.
1111 - Exempt
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- FHA loan
A loan that the Federal Housing Administration insures. HMDA loan type 2.
2 - Federal Housing Administration insured (FHA)
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- HMDA
The Home Mortgage Disclosure Act. Lenders that it covers report each year the mortgage applications that they decide and the loans that they make or buy. This site shows those reports.
The Home Mortgage Disclosure Act requires financial institutions to maintain, report, and publicly disclose loan-level information about mortgages.
Source: CFPB, A Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data (June 2022), copied on .
- Home improvement loan
A loan for repairs or other work on a home. HMDA loan purpose 2.
Home improvement loan means a closed-end mortgage loan or an open-end line of credit that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is located.
Source: CFPB, Regulation C, 12 CFR 1003.2, copied on .
- Home purchase loan
A loan to buy a home. HMDA loan purpose 1.
Home purchase loan means a closed-end mortgage loan or an open-end line of credit that is for the purpose, in whole or in part, of purchasing a dwelling.
Source: CFPB, Regulation C, 12 CFR 1003.2, copied on .
- Interest rate
The yearly rate of interest of the loan at closing, in percent. The site shows the median rate of the originated loans of a lender. It is not the annual percentage rate (APR).
The interest rate for the covered loan or application
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- IRRRL
The VA Interest Rate Reduction Refinance Loan. A refinance of a loan that VA already guarantees. VA lender statistics count these loans apart from purchase loans and cash-out refinance loans.
No agency definition of this term is on file. The explanation is this site's own text.
- Legal Entity Identifier (LEI)
A code of 20 characters that names one organization. This site uses it to tell lenders apart, because two lenders can have the same name.
A financial institution’s Legal Entity Identifier
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Lender credits
Money that the lender gives the borrower at closing to pay a part of the costs. HMDA gives the amount in dollars. The site shows the median of the loans that report an amount.
The amount, in dollars, of lender credits
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Loan originated
A loan that the lender made. HMDA action taken 1. This site writes "loans originated" for the count, and "originate" for the action.
A financial institution reports that the covered loan was originated if the financial institution made a credit decision approving the application before closing or account opening and that credit decision results in an extension of credit.
Source: CFPB, Regulation C, 12 CFR 1003.4, copied on .
- Loan purpose
What the loan is for. HMDA gives home purchase (1), home improvement (2), refinancing (31), cash-out refinancing (32) and other purpose (4). Code 5 is for a purchased loan.
The purpose of covered loan or application
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Loan type
Who insures or guarantees the loan, if anyone. HMDA gives four types: conventional (1), FHA (2), VA (3) and USDA (4).
The type of covered loan or application
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Loan/application register (LAR)
The list of records that a lender files for one year. It has one record for each application or purchased loan. The public file does not show the name of an applicant.
Collectively, the data points for each application are referred to as a “loan/application register” or “LAR.”
Source: CFPB, A Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data (June 2022), copied on .
- Median
The middle value when the loans are put in order. Half of the loans have a lower value and half have a higher value. A median needs 20 loans or more on this site.
No agency definition of this term is on file. The explanation is this site's own text.
- Origination charges
The fees that the borrower pays at or before closing for the work of the lender to make the loan. They are one part of the total loan costs.
The total of all itemized amounts, in dollars, that are designated borrower-paid at or before closing
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Other purpose
A loan that a home secures, for a purpose that is none of the other purposes. HMDA loan purpose 4.
4 - Other purpose
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Partial exemption
A rule of HMDA that lets some lenders leave out some data of a record. The lender files "Exempt" in those fields. The rule is for banks and credit unions with fewer than 500 closed-end loans a year.
If a financial institution is eligible for a partial exemption for a specific transaction, then the financial institution is not required to collect, record, or report certain data points for the transaction.
Source: CFPB, A Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data (June 2022), copied on .
Except as provided in paragraph (d)(6) of this section, an insured depository institution or insured credit union that, in each of the two preceding calendar years, originated fewer than 500 closed-end mortgage loans that are not excluded from this part pursuant to paragraphs (c)(1) through (10) or paragraph (c)(13) of this section is not required to collect, record, or report optional data as defined in paragraph (d)(1)(iii) of this section for applications for closed-end mortgage loans that it receives, closed-end mortgage loans that it originates, and closed-end mortgage loans that it purchases.
Source: CFPB, Regulation C, 12 CFR 1003.3, copied on .
- Purchased loan
A loan that the lender bought from another lender. HMDA action taken 6. This site does not count it as an application.
6 - Purchased loan
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Rate spread
The difference between the annual percentage rate (APR) of the loan and the average prime offer rate, in percentage points. A spread of 0.5 on a loan of $300,000 is about $1,500 a year.
The difference between the covered loan’s annual percentage rate (APR) and the average prime offer rate (APOR) for a comparable transaction as of the date the interest rate is set
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- Refinancing
A new loan that pays off an existing loan of the same borrower, both secured by a home. HMDA loan purpose 31.
Refinancing means a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.
Source: CFPB, Regulation C, 12 CFR 1003.2, copied on .
- Total loan costs
All the costs of the loan that the borrower pays at closing, in dollars, as the loan disclosure states them. They include the origination charges. This site shows the median.
The amount, in dollars, of total loan costs
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- USDA loan
A loan that the Rural Housing Service or the Farm Service Agency of the Department of Agriculture guarantees. HMDA loan type 4.
4 - USDA Rural Housing Service or Farm Service Agency guaranteed (RHS or FSA)
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
- VA lender
A lender in the VA lender statistics. VA counts the loans that it guaranteed for each lender in each month. VA lists names, not LEIs, so the site matches a name to a HMDA filer where it can.
Lenders are persons or entities (private sector or government) that originate, hold, service, fund, buys, sells or otherwise transfers a loan guaranteed by the Department of Veterans Affairs.
Source: Department of Veterans Affairs, VA Home Loans, Lender Statistics, copied on .
- VA loan
A loan that the Department of Veterans Affairs guarantees. HMDA loan type 3.
3 - Veterans Affairs guaranteed (VA)
Source: FFIEC, Public HMDA - LAR Data Fields, copied on .
The site copied the quotations on . A quotation keeps the spelling and the punctuation of the agency.