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Technical Report Series
A Profile of 2015 Mortgage Borrowers: Statistics from the National Survey of
Mortgage Originations
Technical Report 5.0
November 17, 2017 This document was prepared by Robert B. Avery, Mary F. Bilinski, Audrey Clement, Tim Critchfield, Samuel Frumkin, Ian H. Keith, Ismail E. Mohamed, Julia Nguyen, Forrest W. Pafenberg, Saty Patrabansh, and Jay D. Schultz.
Table of Contents
1. Introduction .................................................................................................................... 1
2. Comparing the 2015 NSMO with 2015 Home Mortgage Disclosure Act Data ........... 2
3. Profile of 2015 Mortgage Borrowers .............................................................................. 3
4. Borrower Knowledge of the Mortgage Process .............................................................. 8
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 ......................................... 36
10. Recent Changes in Neighborhood Housing .................................................................. 36
11. Expectations on Neighborhood House Prices and Neighborhood Desirability ............ 41
12. Financial Expectations .................................................................................................. 41
Appendix. About the National Mortgage Database Project ................................................... A-1
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
i
1. Introduction This is the third 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 third quarter of 2015 to the second quarter of 2016, NSMO sent surveys to 21,946 borrowers with mortgages originated in 2015, representing an average sampling rate of 1-in-307. Of the solicited surveys, 6,188 usable responses were received, making the effective response rate for 2015 originations 28.2 percent.3 A total of 6.7 million closed-end first-lien mortgages were originated in 2015, which means that an average useable survey response is representative of 1,082 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
1 The first Report, A Profile of 2013 Mortgage Borrowers, National Mortgage Database Technical Report 3.1, the second Report, A Profile of 2014 Mortgage Borrowers, National Mortgage Database Technical Report 4.0, 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 calculations based on the NSMO raw survey responses may not be representative of the population as a whole and, as a result, 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 2.2 for more details. 4 The weighted percentages reported in this technical document represent the respondents who took out a mortgage in 2015. The words “respondent” and “borrower” are used interchangeably throughout the document.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
1
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. This Report presents the results from the 6,192 responses to the survey and provides an overview of the mortgage market and borrowers’ experiences in 2015. Section two compares the 2015 NSMO with 2015 Home Mortgage Disclosure Act (HMDA) data. Section three contains information about the overall profile of survey respondents in 2015, including their demographic characteristics and what kind of mortgages they obtained. Sections four through seven describe how the 2015 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 and the sampling and data preparation procedures for the NSMO. 2. Comparing the 2015 NSMO with 2015 Home Mortgage Disclosure
Act Data This section provides a comparison of the 2015 NSMO survey responses with the 2015 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 both the NSMO and HMDA data show that there were approximately 6.1 million first-lien mortgage loans associated with owner-occupied homes in 2015. The market dollar estimates from the two sources were also close, with the HMDA estimate slightly higher than the NSMO estimate. The average loan size in the NSMO was slightly smaller than in HMDA – $232,679 compared with $244,904.
The estimate of mortgage loans associated with non-owner-occupied properties from HMDA is higher than the estimate from the NSMO. HMDA estimates 760,000 such mortgages, 52 percent greater than the number estimated from the NSMO. The NSMO data suggest $97 billion in mortgage originations in 2015 associated with non-owner-occupied properties, whereas HMDA suggests $170 billion. One explanation for this difference is that HMDA reporting
Count (Thousands)1 Volume (Billion Dollars)1 Count (Thousands)1 Volume (Billion Dollars)Owner-occupied 6,161 1,434 6,055 1,483
Purchase 3,237 746 3,210 785 Refinance 2,925 687 2,846 698
Not owner-occupied 500 97 760 170
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, 2015 and Home Mortgage Disclosure Act, 2015
Table 1. Comparison of Mortgage Originations, 2015(Count and Dollar Volume)
National Survey of Mortgage Originations (NSMO) Home Mortgage Disclosure Act (HMDA)Mortgage Originations
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
2
covers some larger mortgages made to business partnerships for non-owner-occupied properties that are not reported to the credit bureaus and thus not represented in the NSMO. 3. Profile of 2015 Mortgage Borrowers Tables 2 through 5 present characteristics of NSMO respondents who acquired a mortgage in 2015. 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 the majority of 2015 mortgage loans reported in the survey were used to purchase a property. Fifty-two percent of survey respondents reported they purchased a home, and 48 percent reported they refinanced5 an existing mortgage. Owner-occupants represented 93 percent of mortgage borrowers, with 48 percent of borrowers having purchased a home that they occupied and 45 percent having refinanced an existing mortgage for a home they occupied. The remaining seven 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 52 percent of respondents who purchased a home, 37 percent were first-time homeowners, 55 percent were repeat homeowners, and the remaining 8 percent were non-occupant investors. Of the 48 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 6 percent refinanced a mortgage for a non-owner-occupied investment. About half of respondents (52 percent) were 45 years old or younger, with this share being greater for home-purchase borrowers (64 percent). About three-quarters of respondents (74 percent) reported that they were non-Hispanic white, eight percent reported they were Hispanic white, nearly eight percent indicated they were Asian, and six 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 2015 represented households with two adults living together, with 68 percent reporting they were married and eight 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 refinances. Twenty-five percent of borrowers indicated
5 In this report, refinances include all non-purchase mortgages, 92 percent of which are traditional refinances or modifications, 3 percent are permanent financing of a construction loan, 4 percent are loans on a mortgage-free property, and 1 percent are mortgages for a change in borrowers.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
3
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hase
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finan
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(Con
tinue
d on
the
next
pag
e)
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
4
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0.
9
2.
6
48
.4
15
.6
28
.7
0.
8
0.
4
2.
9
59
.7
72
0 to
739
52.9
22.5
26
.7
2.
1
0.
5
1.
1
47
.1
18
.5
25
.2
1.
0
0.
8
1.
5
9.
8
74
0 or
Hig
her
51.4
14.3
30
.8
2.
4
1.
0
2.
9
48
.6
15
.0
29
.4
0.
8
0.
3
3.
1
49
.9
Lo
an T
ype
Purc
hase
110
0.0
37.1
55
.1
3.
0
1.
3
3.
6
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
52
.0
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
19.3
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
.7
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
1.6
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
0.7
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
1.9
Ref
inan
ce1
0.0
0.0
0.0
0.0
0.0
0.0
100.
0
37
.5
55
.6
1.
3
0.
7
4.
9
48
.0
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
.0
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
26.7
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.
3
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
2.
3
Pr
oper
ty T
ype
Sing
le-fa
mily
Det
ache
d H
ouse
50.5
18.5
29
.0
1.
3
0.
5
1.
1
49
.5
18
.9
27
.8
0.
5
0.
3
2.
0
84
.2
To
wnh
ouse
, Row
Hou
se, o
r Villa
60.1
23.5
28
.0
1.
1
1.
4
6.
0
39
.9
12
.8
21
.5
1.
1
0.
3
4.
1
5.
5
M
obile
or M
anuf
actu
red
Hom
e
51.8
20.0
26
.8
2.
5
2.
1
0.
5
48
.2
19
.1
27
.6
0.
0
1.
5
0.
0
2.
1
Tw
o-to
-Fou
r Uni
t Dw
ellin
g
50
.9
19
.0
16.6
0.0
0.4
14.9
49
.1
14
.0
16
.2
3.
1
0.
0
15
.9
2.0
Con
do, A
partm
ent H
ouse
, or C
o-op
65
.6
26
.9
28.2
5.8
1.6
3.2
34.4
11.1
19.1
0.8
0.7
2.6
6.0
Oth
er
10
0.0
8.2
37.7
17.8
0.0
36.3
0.
0
0.
0
0.
0
0.
0
0.
0
0.
0
0.
2
A
ll R
espo
nden
ts52
.0
19
.3
28.7
1.6
0.7
1.9
48.0
18.0
26.7
0.6
0.3
2.3
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
5
$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
1.5
37.8
39
.9
20.8
0.
7
7.
2
2.
7
89.3
27
.0
38
.3
14
.7
36
to 4
51.
5
24
.7
44.0
29
.8
2.2
13.2
6.
6
78.0
24
.7
25
.9
23
.5
46
to 5
53.
7
30
.0
41.7
24
.5
4.2
20.8
6.
1
68.9
21
.4
16
.9
26
.3
56
to 6
55.
4
40
.8
36.1
17
.7
5.9
19.0
7.
7
67.4
16
.8
12
.5
21
.3
O
lder
than
65
6.
3
43
.2
33.8
16
.6
7.5
15.9
6.
1
70.5
10
.1
6.
3
14
.2
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te3.
3
35
.6
39.8
21
.3
3.9
14.5
6.
0
75.5
74
.4
73
.1
75
.8
H
ispa
nic
and
Non
-Whi
te2.
6
29
.1
40.8
27
.5
1.8
14.3
4.
3
79.6
25
.6
26
.9
24
.2
H
ispa
nic
Whi
te2.
5
33
.3
45.3
18
.9
1.3
11.3
4.
7
82.7
8.
2
9.
2
7.
2
As
ian
0.7
15.4
37
.8
46.2
1.
1
22
.4
4.4
72
.2
7.7
7.6
7.8
Blac
k5.
6
37
.0
41.1
16
.3
2.8
10.4
4.
2
82.6
6.
4
6.
3
6.
4
Al
l Oth
er R
aces
21.
9
35
.7
35.7
26
.7
3.0
10.1
3.
4
83.5
3.
3
3.
8
2.
7
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
8.5
50.7
33
.7
7.1
6.0
15.9
6.
5
71.6
12
.3
11
.6
13
.2
So
me
Scho
ol10
.2
48.7
27
.5
13.6
9.
1
17
.8
10.4
62
.7
1.4
1.4
1.4
Hig
h Sc
hool
8.2
51.0
34
.4
6.3
5.6
15.7
6.
0
72.8
10
.9
10
.2
11
.8
So
me
Col
lege
3.8
42.2
40
.6
13.5
3.
7
12
.3
5.9
78
.1
24.4
23.4
25.5
Tech
nica
l Sch
ool
4.6
50.7
35
.4
9.3
5.9
15.6
6.
5
72.1
4.
8
4.
2
5.
4
Pa
rtial
Col
lege
3.6
40.1
41
.8
14.5
3.
2
11
.5
5.7
79
.5
19.6
19.2
20.1
Col
lege
Deg
ree
2.
3
32
.0
41.4
24
.3
3.0
13.9
5.
7
77.4
36
.3
37
.7
34
.7
Po
stgr
adua
te
1.
2
21
.3
40.7
36
.8
2.3
16.5
4.
8
76.4
27
.0
27
.3
26
.6
H
ouse
hold
Inco
me
Less
than
$50
,000
9.4
66.7
21
.3
2.5
4.7
11.4
6.
5
77.4
17
.4
18
.7
16
.0
Le
ss th
an $
35,0
0015
.5
72.6
10
.8
1.1
4.7
10.5
7.
2
77.6
6.
5
7.
1
5.
9
$3
5,00
0 to
$49
,999
5.8
63.2
27
.7
3.3
4.7
11.9
6.
1
77.2
10
.9
11
.6
10
.1
$5
0,00
0 to
$99
,999
3.1
41.7
46
.5
8.6
3.5
13.7
5.
3
77.4
38
.7
40
.4
36
.8
$5
0,00
0 to
$74
,999
3.8
49.7
41
.4
5.1
3.7
12.2
5.
8
78.2
20
.9
22
.6
19
.1
$7
5,00
0 to
$99
,999
2.4
32.3
52
.6
12.8
3.
3
15
.5
4.7
76
.5
17.8
17.8
17.7
$100
,000
to $
174,
999
0.
9
16
.1
50.5
32
.6
2.7
15.7
6.
3
75.3
28
.6
26
.6
30
.8
$1
75,0
00 o
r Mor
e
0.
1
10
.2
25.6
64
.1
2.8
17.5
4.
0
75.7
15
.3
14
.3
16
.3
H
ouse
hold
Typ
eC
oupl
e2.
4
28
.8
42.3
26
.5
3.4
14.7
5.
5
76.3
74
.6
73
.5
75
.7
M
arrie
d2.
3
27
.2
42.7
27
.8
3.5
15.3
5.
7
75.5
67
.0
63
.4
70
.9
W
ith P
artn
er3.
3
42
.5
39.2
15
.1
2.2
9.3
4.3
84
.2
7.6
10.1
4.9
Sing
le5.
3
49
.0
33.5
12
.2
3.3
13.7
5.
8
77.2
25
.4
26
.5
24
.3
M
ale
4.2
48.5
34
.9
12.3
2.
8
15
.3
6.4
75
.5
11.1
11.7
10.4
Fem
ale
6.2
49.3
32
.4
12.2
3.
7
12
.5
5.3
78
.5
14.3
14.8
13.9
Mili
tary
Activ
e D
uty
or V
eter
an4.
0
35
.7
39.9
20
.4
3.7
13.4
4.
7
78.2
17
.3
14
.8
20
.1
Ac
tive
Dut
y0.
0
20
.1
52.5
27
.3
1.8
9.2
3.6
85
.5
1.5
1.7
1.3
Vete
ran
4.3
37.2
38
.8
19.8
3.
9
13
.8
4.8
77
.5
15.8
13.1
18.8
No
Milit
ary
Serv
ice
2.9
33.6
40
.1
23.4
3.
3
14
.7
5.8
76
.2
82.7
85.2
79.9
Basi
c Tr
aini
ng2.
1
39
.6
40.0
18
.3
3.2
15.7
7.
0
74.2
5.
2
4.
8
5.
5
N
ever
Ser
ved
3.0
33.2
40
.1
23.7
3.
3
14
.6
5.7
76
.4
77.5
80.4
74.4
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 5.0____________________________________________________________________________________A Profile of 2015 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
Mor
eEm
ploy
men
tFu
ll-Ti
me
2.4
32.1
41
.0
24.5
2.
9
14
.4
5.4
77.3
87
.9
91
.2
84
.3
C
oupl
e, B
oth
1.7
26.2
43
.3
28.7
3.
0
15
.3
5.0
76.7
41
.4
43
.2
39
.5
C
oupl
e, O
ne2.
4
29
.0
42.2
26
.4
3.0
13.5
5.
9
77
.7
26.2
25.2
27.3
Sing
le3.
9
47
.9
34.9
13
.3
2.7
13.7
5.
7
77
.9
20.3
22.8
17.5
Not
Ful
l-Tim
e8.
1
47
.4
33.0
11
.5
6.6
15.2
6.
8
71
.4
12.1
8.8
15.7
Cou
ple,
Nei
ther
6.1
43.1
36
.7
14.1
7.
3
16
.1
7.5
69.0
7.
0
5.
1
9.
0
Si
ngle
10.9
53
.1
28.0
8.
0
5.
6
14
.0
5.9
74.5
5.
2
3.
7
6.
7
C
redi
t Sco
re1
Low
er th
an 6
20
6.5
46.6
36
.6
10.4
3.
1
5.
1
6.
1
85
.7
6.4
6.3
6.5
620
to 6
79
4.
3
38
.6
41.1
16
.0
3.6
9.9
4.9
81.7
17
.8
17
.6
17
.9
62
0 to
639
5.5
39.0
44
.3
11.2
5.
7
8.
5
4.
1
81
.7
4.6
4.8
4.5
640
to 6
594.
6
39
.1
38.1
18
.2
2.6
11.6
4.
7
81
.1
6.5
6.7
6.3
660
to 6
793.
2
37
.7
41.8
17
.3
3.1
9.1
5.6
82.2
6.
6
6.
1
7.
2
68
0 to
719
3.0
35.8
42
.7
18.4
3.
0
10
.4
4.5
82.0
16
.1
16
.8
15
.3
68
0 to
699
3.4
37.0
39
.4
20.3
2.
6
9.
2
4.
3
83
.9
7.5
8.1
6.9
700
to 7
192.
7
34
.8
45.7
16
.7
3.5
11.5
4.
7
80
.4
8.6
8.7
8.4
720
or H
ighe
r2.
4
30
.7
39.4
27
.5
3.5
17.9
6.
0
72
.6
59.7
59.2
60.2
720
to 7
391.
8
33
.7
41.4
23
.2
1.6
9.9
6.7
81.8
9.
8
9.
9
9.
6
74
0 or
Hig
her
2.6
30.1
39
.0
28.3
3.
8
19
.5
5.9
70.8
49
.9
49
.3
50
.6
Lo
an T
ype
Purc
hase
32.
4
33
.9
41.8
21
.9
1.5
6.4
1.6
90.5
52
.0
10
0.0
0.0
Firs
t-Tim
e H
omeo
wne
r11.
7
42
.7
41.5
14
.1
0.5
4.5
1.3
93.7
19
.3
37
.1
0.
0
R
epea
t Hom
eow
ner
2.2
26.4
43
.3
28.0
1.
8
6.
6
1.
6
89
.9
28.7
55.1
0.0
Seas
onal
Hom
e0.
7
35
.7
38.9
24
.8
3.4
8.4
4.2
84.1
1.
6
3.
0
0.
0
R
elat
ive
Hom
e14
.0
55.7
14
.6
15.7
4.
6
7.
3
5.
0
83
.1
0.7
1.3
0.0
Inve
stm
ent H
ome
8.3
48.5
33
.5
9.8
4.8
21.1
1.
1
73
.1
1.9
3.6
0.0
Ref
inan
ce3
3.9
33.9
38
.2
23.9
5.
4
23
.2
9.9
61.5
48
.0
0.
0
10
0.0
Hom
eow
ner C
asho
ut4
4.4
35.0
37
.7
23.0
6.
9
21
.2
7.6
64.4
18
.0
0.
0
37
.5
H
omeo
wne
r Reg
ular
3.4
31.9
38
.9
25.8
4.
0
24
.2
11.4
60
.3
26.7
0.0
55.6
Seas
onal
Hom
e3.
6
42
.2
31.9
22
.4
11.2
31
.4
12.9
44
.6
0.6
0.0
1.3
Rel
ativ
e H
ome
6.2
58.1
26
.8
8.9
19.9
19
.4
4.8
55.9
0.
3
0.
0
0.
7
In
vest
men
t Hom
e
6.
6
43
.7
36.8
12
.9
6.4
25.5
10
.8
57.3
2.
3
0.
0
4.
9
Pr
oper
ty T
ype
Sing
le-fa
mily
Det
ache
d H
ouse
2.8
32.6
41
.2
23.4
3.
2
14
.4
5.3
77.0
84
.2
81
.7
87
.0
To
wnh
ouse
, Row
Hou
se, o
r Villa
1.6
34.2
41
.8
22.4
2.
7
13
.6
6.1
77.6
5.
5
6.
4
4.
6
M
obile
or M
anuf
actu
red
Hom
e
13.6
71
.9
14.5
0.
0
14
.4
13.3
21
.0
51.2
2.
1
2.
1
2.
1
Tw
o-to
-Fou
r Uni
t Dw
ellin
g
9.
1
40
.0
27.2
23
.7
4.5
20.2
4.
5
70
.8
2.0
1.9
2.0
Con
do, A
partm
ent H
ouse
, or C
o-op
3.
6
36
.4
35.6
24
.4
2.0
13.8
3.
6
80
.5
6.0
7.5
4.3
Oth
er
5.
7
27
.6
62.2
4.
6
11
.2
15.4
11
.2
62.2
0.
2
0.
4
0.
0
A
ll R
espo
nden
ts3.
1
33
.9
40.1
22
.9
3.4
14.5
5.
6
76
.6
100.
0
10
0.0
100.
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
7
that they were single—14 percent single females and 11 percent single males. Overall, 88 percent of households included at least one full-time worker. This percentage was higher for homebuyers (91 percent) than those who refinanced (84 percent). Seventeen percent of borrowers reported that they were on active duty or were veterans of the U.S. military. About 17 percent of respondents reported household income in 2015 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).6 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 six percent had a credit score below 620. Fifty-nine percent of homebuyer respondents had credit score of 720 or higher, nearly identical to respondents who refinanced. Eighteen percent of homebuyer respondents had a credit score below 680, identical to respondents who refinanced. 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, six percent condominiums, six percent townhouses, two percent manufactured homes, and two percent 2-, 3- and 4-unit dwellings. Life Events Many of the respondents reported that they had experienced one or more life events over the last couple of years. The results are reflected in Table 6. Seven percent of respondents indicated that they had divorced or separated, 12 percent indicated they had married or had a new partner, eight percent reported experiencing a disability or major illness, one percent reported that a disaster had affected their home, one percent reported that a disaster had affected their job, 31 percent indicated that they moved less than 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 at the same time as the mortgage. 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 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 5.0____________________________________________________________________________________A Profile of 2015 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
6.7
19
.0
4.9
7.
3
6.8
18
.2
8.1
10
.1
56.1
11
.2
45.0
27
.0
36 to
45
8.5
17
.2
5.3
6.
1
5.8
16
.9
8.1
8.
8
57.4
10
.2
47.2
24
.7
46 to
55
5.7
17
.9
3.8
6.
6
7.5
15
.6
7.0
8.
5
60.9
9.
0
51.8
21
.4
56 to
65
4.7
18
.9
5.4
6.
9
6.6
13
.3
6.7
6.
7
63.1
9.
9
53.2
16
.8
Old
er th
an 6
5
5.1
13
.8
2.8
4.
4
6.6
14
.2
7.2
7.
1
66.9
6.
5
60.4
10
.1
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
5.7
16
.6
4.6
5.
9
6.2
15
.4
7.1
8.
3
62.3
10
.5
51.8
74
.4
His
pani
c an
d N
on-W
hite
8.6
21
.1
4.7
8.
4
8.0
18
.3
8.8
9.
4
52.0
7.
7
44.3
25
.6
His
pani
c W
hite
7.1
25
.9
3.8
13
.3
8.8
23
.5
12.2
11
.3
43.6
7.
3
36.3
8.
2
As
ian
4.5
11
.4
2.4
3.
2
5.8
11
.6
4.5
7.
0
72.6
6.
8
65.8
7.
7
Bl
ack
14.5
27
.8
8.2
9.
6
10.0
17
.9
7.6
10
.3
39.8
8.
8
31.1
6.
4
Al
l Oth
er R
aces
211
.0
18.8
5.
4
5.8
7.
6
21.7
13
.0
8.8
48
.4
8.6
39
.8
3.3
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
9.
7
25.2
6.
6
9.7
8.
9
18.6
8.
3
10.3
46
.5
10.2
36
.3
12.3
So
me
Scho
ol9.
7
18.8
3.
9
6.0
8.
9
26.3
12
.3
14.0
45
.2
8.6
36
.6
1.4
Hig
h Sc
hool
9.7
26
.0
6.9
10
.1
9.0
17
.7
7.8
9.
9
46.6
10
.4
36.3
10
.9
Som
e C
olle
ge
8.
5
22.3
6.
0
8.0
8.
3
20.2
10
.3
10.0
49
.0
11.0
38
.0
24.4
Te
chni
cal S
choo
l8.
2
23.3
7.
5
7.8
8.
0
17.1
8.
7
8.3
51
.5
13.6
37
.9
4.8
Parti
al C
olle
ge8.
6
22.1
5.
6
8.1
8.
4
21.0
10
.6
10.4
48
.4
10.3
38
.0
19.6
C
olle
ge D
egre
e
5.9
16
.5
4.3
5.
8
6.5
14
.2
6.5
7.
7
63.4
9.
8
53.6
36
.3
Post
grad
uate
3.8
11
.9
3.0
4.
7
4.3
13
.8
6.2
7.
6
70.5
8.
5
62.0
27
.0
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
10
.6
22.3
5.
7
8.6
8.
0
20.3
10
.9
9.4
46
.9
10.7
36
.2
17.4
Le
ss th
an $
35,0
0012
.4
22.1
5.
3
10.1
6.
7
19.1
10
.3
8.8
46
.4
8.6
37
.8
6.5
$35,
000
to $
49,9
999.
5
22.4
5.
9
7.6
8.
8
21.0
11
.2
9.8
47
.2
11.9
35
.3
10.9
$5
0,00
0 to
$99
,999
7.3
20
.3
5.5
7.
4
7.4
17
.7
8.1
9.
5
54.7
10
.2
44.6
38
.7
$50,
000
to $
74,9
999.
3
22.2
6.
2
8.2
7.
8
17.8
8.
1
9.7
50
.7
9.7
41
.0
20.9
$7
5,00
0 to
$99
,999
5.0
18
.1
4.7
6.
5
6.9
17
.5
8.1
9.
3
59.5
10
.7
48.7
17
.8
$100
,000
to $
174,
999
4.
8
15.9
3.
9
6.1
5.
9
14.3
6.
2
8.0
65
.1
9.5
55
.5
28.6
$1
75,0
00 o
r Mor
e
2.
5
9.8
2.
6
2.7
4.
5
10.9
4.
7
6.2
76
.8
8.3
68
.5
15.3
H
ouse
hold
Typ
eC
oupl
e6.
3
17.3
4.
8
6.2
6.
3
15.7
7.
3
8.4
60
.7
9.9
50
.8
74.6
M
arrie
d6.
1
17.1
4.
8
5.9
6.
4
15.6
7.
2
8.4
61
.3
9.7
51
.5
67.0
W
ith P
artn
er8.
6
18.8
4.
2
8.8
5.
7
16.8
8.
4
8.4
55
.9
11.6
44
.3
7.6
Sing
le6.
8
19.3
4.
3
7.4
7.
6
17.3
8.
2
9.1
56
.6
9.4
47
.3
25.4
M
ale
5.1
19
.6
4.4
7.
4
7.8
17
.0
7.7
9.
3
58.2
9.
8
48.4
11
.1
Fem
ale
8.0
19
.0
4.2
7.
4
7.4
17
.6
8.6
8.
9
55.4
9.
0
46.4
14
.3
Mili
tary
Activ
e D
uty
or V
eter
an9.
4
21.6
6.
3
7.2
8.
1
17.5
8.
0
9.5
51
.5
7.9
43
.6
17.3
Ac
tive
Dut
y7.
2
21.9
11
.5
4.0
6.
4
21.9
11
.1
10.8
49
.0
8.4
40
.6
1.5
Vete
ran
9.6
21
.6
5.8
7.
5
8.3
17
.1
7.7
9.
4
51.7
7.
9
43.8
15
.8
No
Milit
ary
Serv
ice
5.8
17
.0
4.3
6.
4
6.3
15
.8
7.5
8.
4
61.4
10
.2
51.2
82
.7
Basi
c Tr
aini
ng6.
9
21.4
5.
1
9.4
6.
9
13.4
8.
2
5.2
58
.2
10.7
47
.5
5.2
Nev
er S
erve
d5.
7
16.7
4.
2
6.2
6.
3
16.0
7.
4
8.6
61
.6
10.1
51
.5
77.5
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 5.0____________________________________________________________________________________A Profile of 2015 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
6.6
18
.1
4.6
6.
8
6.7
16
.6
7.7
8.
9
58.8
10
.0
48.7
87
.9
Cou
ple,
Bot
h5.
3
17.9
5.
4
6.1
6.
5
17.0
7.
6
9.4
59
.8
10.5
49
.3
41.4
C
oupl
e, O
ne8.
8
17.0
3.
7
7.1
6.
3
14.3
6.
7
7.6
59
.8
9.4
50
.4
26.2
Si
ngle
6.4
19
.8
4.2
7.
9
7.7
18
.6
9.1
9.
6
55.2
9.
9
45.3
20
.3
Not
Ful
l-Tim
e5.
1
15.5
4.
9
4.4
6.
2
12.9
6.
7
6.1
66
.6
8.1
58
.4
12.1
C
oupl
e, N
eith
er3.
0
14.1
5.
1
3.5
5.
5
13.3
8.
0
5.3
69
.7
8.7
60
.9
7.0
Sing
le8.
0
17.3
4.
5
5.5
7.
3
12.3
5.
0
7.3
62
.4
7.3
55
.1
5.2
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
6.4
620
to 6
79
0.
0
100.
0
26.1
36
.6
37.3
0.
0
0.0
0.
0
0.0
0.
0
0.0
17
.8
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
6.5
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
6.6
680
to 7
19
0.
0
0.0
0.
0
0.0
0.
0
100.
0
46.9
53
.1
0.0
0.
0
0.0
16
.1
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
7.5
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
8.6
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
59
.7
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
9.8
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
49.9
Lo
an T
ype
Purc
hase
36.
3
17.6
4.
8
6.7
6.
1
16.8
8.
1
8.7
59
.2
9.9
49
.3
52.0
Fi
rst-T
ime
Hom
eow
ner1
8.3
22
.5
5.6
9.
2
7.7
21
.0
9.8
11
.2
48.3
11
.4
36.9
19
.3
Rep
eat H
omeo
wne
r5.
8
15.8
4.
5
5.7
5.
6
15.7
7.
9
7.8
62
.8
9.1
53
.6
28.7
Se
ason
al H
ome
2.6
3.
8
3.3
0.
5
0.0
2.
7
2.2
0.
6
90.9
12
.9
77.9
1.
6
R
elat
ive
Hom
e0.
0
12.2
0.
0
4.4
7.
8
7.1
2.
5
4.6
80
.7
7.4
73
.4
0.7
Inve
stm
ent H
ome
0.0
9.
6
3.1
2.
7
3.7
6.
2
1.2
5.
0
84.2
5.
8
78.3
1.
9
R
efin
ance
36.
5
17.9
4.
5
6.3
7.
2
15.3
6.
9
8.4
60
.2
9.6
50
.6
48.0
H
omeo
wne
r Cas
hout
48.
2
22.7
6.
3
8.1
8.
4
17.5
7.
5
9.9
51
.6
10.1
41
.6
18.0
H
omeo
wne
r Reg
ular
5.6
15
.3
3.3
5.
3
6.7
14
.8
7.0
7.
8
64.2
9.
3
55.0
26
.7
Seas
onal
Hom
e2.
7
9.7
2.
3
5.5
1.
9
3.2
1.
8
1.3
84
.5
15.9
68
.5
0.6
Rel
ativ
e H
ome
4.3
15
.9
2.6
4.
3
8.9
12
.1
0.0
12
.1
67.7
23
.7
44.0
0.
3
In
vest
men
t Hom
e
5.
6
13.2
5.
1
3.9
4.
2
8.3
3.
4
4.9
72
.9
6.4
66
.5
2.3
Prop
erty
Typ
eSi
ngle
-fam
ily D
etac
hed
Hou
se
7.
0
18.1
4.
8
6.5
6.
9
16.1
7.
7
8.3
58
.9
10.0
48
.9
84.2
To
wnh
ouse
, Row
Hou
se, o
r Villa
2.8
13
.9
2.9
7.
3
3.7
15
.8
4.4
11
.4
67.6
7.
9
59.6
5.
5
M
obile
or M
anuf
actu
red
Hom
e
10.2
30
.5
7.9
10
.3
12.3
12
.8
5.5
7.
3
46.5
13
.9
32.6
2.
1
Tw
o-to
-Fou
r Uni
t Dw
ellin
g
6.
3
17.2
3.
9
4.8
8.
5
14.8
8.
8
5.9
61
.8
13.1
48
.7
2.0
Con
do, A
partm
ent H
ouse
, or C
o-op
0.
9
12.3
3.
5
4.9
4.
0
18.9
8.
4
10.5
67
.9
6.3
61
.5
6.0
Oth
er
0.
0
26.5
0.
0
26.5
0.
0
8.2
8.
2
0.0
65
.3
0.0
65
.3
0.2
All
Res
pond
ents
6.4
17
.8
4.6
6.
5
6.6
16
.1
7.5
8.
6
59.7
9.
8
49.9
10
0.0
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
10
Sing
le-F
amily
Tow
nhou
seM
obile
Two-
to-F
our U
nit
Cond
oO
ther
Res
pond
ent A
ge35
Yea
rs o
r You
nger
82.7
6.
6
2.3
1.
7
6.4
0.
2
27.0
36
to 4
587
.9
5.1
1.
3
1.7
3.
8
0.2
24
.7
46 to
55
84.7
4.
9
1.9
2.
4
5.9
0.
1
21.4
56
to 6
584
.2
5.3
2.
2
2.2
5.
9
0.2
16
.8
Old
er th
an 6
5
77.9
5.
4
4.2
2.
1
10.2
0.
3
10.1
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te84
.7
4.9
2.
6
1.9
5.
8
0.2
74
.4
His
pani
c an
d N
on-W
hite
82.7
7.
5
0.9
2.
3
6.5
0.
2
25.6
H
ispa
nic
Whi
te85
.3
5.1
1.
0
2.5
5.
4
0.6
8.
2
As
ian
78.2
9.
5
0.6
0.
6
11.2
0.
0
7.7
Blac
k84
.3
7.1
1.
0
4.0
3.
6
0.0
6.
4
Al
l Oth
er R
aces
183
.5
9.4
1.
3
2.4
3.
4
0.0
3.
3
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
84.4
4.
5
5.5
2.
5
3.1
0.
1
12.3
So
me
Scho
ol87
.6
3.4
5.
6
2.8
0.
6
0.0
1.
4
H
igh
Scho
ol84
.0
4.6
5.
5
2.4
3.
4
0.1
10
.9
Som
e C
olle
ge
86
.4
4.0
3.
2
1.5
4.
7
0.1
24
.4
Tech
nica
l Sch
ool
86.9
2.
8
4.4
1.
8
3.9
0.
2
4.8
Parti
al C
olle
ge86
.3
4.3
3.
0
1.5
4.
9
0.1
19
.6
Col
lege
Deg
ree
84
.0
6.3
1.
5
2.0
5.
9
0.3
36
.3
Post
grad
uate
82.5
6.
4
0.4
2.
0
8.5
0.
2
27.0
H
ouse
hold
Inco
me
Less
than
$50
,000
81.5
5.
0
5.1
2.
1
6.2
0.
0
17.4
Le
ss th
an $
35,0
0079
.7
5.4
5.
8
2.2
6.
8
0.0
6.
5
$3
5,00
0 to
$49
,999
82.6
4.
7
4.7
2.
1
5.9
0.
0
10.9
$5
0,00
0 to
$99
,999
84.0
5.
5
2.5
2.
0
5.7
0.
3
38.7
$5
0,00
0 to
$74
,999
82.7
5.
3
2.9
2.
1
6.7
0.
3
20.9
$7
5,00
0 to
$99
,999
85.5
5.
8
2.0
1.
9
4.5
0.
2
17.8
$1
00,0
00 to
$17
4,99
9
87.1
5.
4
0.8
1.
8
4.8
0.
1
28.6
$1
75,0
00 o
r Mor
e
82
.5
6.3
0.
3
2.0
8.
6
0.3
15
.3
Hou
seho
ld T
ype
Cou
ple
87.2
4.
9
2.3
1.
7
3.7
0.
1
74.6
M
arrie
d87
.7
4.9
2.
0
1.8
3.
5
0.1
67
.0
With
Par
tner
82.8
5.
1
5.3
1.
7
5.0
0.
1
7.6
Sing
le75
.3
7.4
1.
6
2.6
12
.6
0.4
25
.4
Mal
e74
.8
8.4
1.
4
3.5
11
.5
0.4
11
.1
Fem
ale
75.8
6.
6
1.8
2.
0
13.5
0.
4
14.3
M
ilita
ryAc
tive
Dut
y or
Vet
eran
88.0
3.
6
2.4
2.
1
3.7
0.
2
17.3
Ac
tive
Dut
y90
.4
3.5
0.
8
2.9
2.
4
0.0
1.
5
Ve
tera
n87
.8
3.6
2.
6
2.0
3.
8
0.2
15
.8
No
Milit
ary
Serv
ice
83.4
5.
9
2.1
1.
9
6.4
0.
2
82.7
Ba
sic
Trai
ning
84.2
5.
5
2.7
3.
7
3.7
0.
2
5.2
Nev
er S
erve
d83
.3
6.0
2.
0
1.8
6.
6
0.2
77
.5
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
11
Sing
le-F
amily
Tow
nhou
seM
obile
Two-
to-F
our U
nit
Cond
oO
ther
Empl
oym
ent
Full-
Tim
e84
.6
5.5
1.
9
2.0
5.
8
0.2
87
.9
Cou
ple,
Bot
h87
.7
5.0
1.
9
1.7
3.
4
0.2
41
.4
Cou
ple,
One
86.7
4.
8
2.5
1.
9
4.0
0.
0
26.2
Si
ngle
75.4
7.
4
1.1
2.
7
12.9
0.
5
20.3
N
ot F
ull-T
ime
81.4
5.
8
3.8
1.
9
7.2
0.
0
12.1
C
oupl
e, N
eith
er86
.1
4.6
3.
9
1.4
4.
0
0.0
7.
0
Si
ngle
75.0
7.
3
3.6
2.
5
11.6
0.
0
5.2
Cre
dit S
core
2
Low
er th
an 6
20
91.4
2.
4
3.4
1.
9
0.9
0.
0
6.4
620
to 6
79
85
.7
4.3
3.
7
1.9
4.
1
0.3
17
.8
620
to 6
3986
.8
3.4
3.
6
1.7
4.
5
0.0
4.
6
64
0 to
659
83.7
6.
2
3.4
1.
4
4.5
0.
8
6.5
660
to 6
7986
.9
3.0
4.
0
2.5
3.
6
0.0
6.
6
68
0 to
719
84.0
5.
4
1.7
1.
8
7.0
0.
1
16.1
68
0 to
699
86.1
3.
2
1.5
2.
3
6.7
0.
2
7.5
700
to 7
1982
.2
7.4
1.
8
1.4
7.
3
0.0
8.
6
72
0 or
Hig
her
83.0
6.
3
1.7
2.
0
6.8
0.
2
59.7
72
0 to
739
86.0
4.
5
3.0
2.
6
3.9
0.
0
9.8
740
or H
ighe
r82
.5
6.6
1.
4
1.9
7.
4
0.3
49
.9
Loan
Typ
ePu
rcha
se3
81.7
6.
4
2.1
1.
9
7.5
0.
4
52.0
Fi
rst-T
ime
Hom
eow
ner2
80.7
6.
7
2.2
1.
9
8.3
0.
1
19.3
R
epea
t Hom
eow
ner
85.3
5.
4
2.0
1.
1
5.9
0.
3
28.7
Se
ason
al H
ome
68.2
4.
0
3.4
0.
0
22.2
2.
2
1.6
Rel
ativ
e H
ome
65.4
12
.2
6.7
1.
2
14.5
0.
0
0.7
Inve
stm
ent H
ome
51.8
17
.9
0.6
15
.8
10.2
3.
7
1.9
Ref
inan
ce3
87.0
4.
6
2.1
2.
0
4.3
0.
0
48.0
H
omeo
wne
r Cas
hout
488
.6
3.9
2.
3
1.5
3.
7
0.0
18
.0
Hom
eow
ner R
egul
ar87
.9
4.5
2.
2
1.2
4.
3
0.0
26
.7
Seas
onal
Hom
e71
.0
10.6
0.
0
10.0
8.
4
0.0
0.
6
R
elat
ive
Hom
e72
.5
5.5
9.
4
0.0
12
.7
0.0
0.
3
In
vest
men
t Hom
e
70
.3
9.7
0.
0
13.4
6.
6
0.0
2.
3
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
.2
Tow
nhou
se, R
ow H
ouse
, or V
illa
0.
0
100.
0
0.0
0.
0
0.0
0.
0
5.5
Mob
ile o
r Man
ufac
ture
d H
ome
0.
0
0.0
10
0.0
0.
0
0.0
0.
0
2.1
Two-
to-F
our U
nit D
wel
ling
0.0
0.
0
0.0
10
0.0
0.
0
0.0
2.
0
C
ondo
, Apa
rtmen
t Hou
se, o
r Co-
op
0.0
0.
0
0.0
0.
0
100.
0
0.0
6.
0
O
ther
0.0
0.
0
0.0
0.
0
0.0
10
0.0
0.
2
A
ll R
espo
nden
ts84
.2
5.5
2.
1
2.0
6.
0
0.2
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 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
17.
5
15.4
3.
0
17.6
5.
9
6.8
0.
8
1.3
48
.9
23.3
Fi
rst-T
ime
Hom
eow
ner2
4.8
22
.5
1.7
21
.8
3.7
4.
3
0.3
1.
1
53.0
19
.9
Rep
eat H
omeo
wne
r10
.1
11.7
3.
4
16.1
5.
9
8.5
1.
0
1.7
51
.3
27.8
N
on-O
ccup
ant O
wne
r1.
6
6.8
5.
6
8.4
15
.5
7.
6
1.2
0.
0
12.4
7.
0
Ref
inan
ce1
5.6
7.
9
4.4
13
.6
8.9
10
.2
2.1
1.
5
10.6
5.
1
Hom
eow
ner C
asho
ut3
5.7
7.
9
4.7
13
.7
9.5
8.
8
1.6
1.
4
10.4
4.
8
Hom
eow
ner R
egul
ar5.
5
8.2
3.
9
14.2
7.
8
11.1
2.
3
1.8
10
.4
4.5
N
on-O
ccup
ant O
wne
r5.
7
5.5
6.
2
8.6
13
.8
10
.7
3.7
0.
0
14.2
11
.0
Loan
Siz
e$5
0,00
0 or
Les
s7.
9
6.8
17
.4
10
.2
10.4
22.7
2.
1
2.7
17
.1
5.4
$5
0,00
1 to
$15
0,00
07.
4
10.4
3.
7
12.6
6.
6
9.2
1.
7
1.4
28
.1
10.7
$1
50,0
01 to
$30
0,00
06.
9
14.1
3.
3
16.0
8.
0
8.3
1.
0
1.4
31
.6
17.0
M
ore
than
$30
0,00
04.
7
10.3
2.
3
20.5
6.
8
5.7
1.
6
1.3
34
.1
17.2
C
redi
t Sco
re2
Low
er th
an 6
207.
7
14.7
4.
2
22.5
10
.1
11
.2
2.1
0.
8
29.0
10
.2
620
to 6
79
7.2
13
.6
4.7
15
.6
7.0
11
.5
1.4
1.
7
28.8
14
.3
680
to 7
19
5.8
13
.3
4.1
15
.8
6.7
8.
6
1.7
1.
1
31.7
15
.6
720
or H
ighe
r6.
5
10.5
3.
1
15.0
7.
3
7.2
1.
3
1.5
30
.9
14.8
R
espo
nden
t Age
35 Y
ears
or Y
oung
er
4.
4
22.4
2.
0
31.7
2.
6
3.5
0.
9
0.7
47
.4
18.1
36
to 4
58.
9
11.3
1.
3
18.6
5.
7
6.4
1.
4
1.8
34
.3
14.4
46
to 5
58.
6
8.5
3.
0
6.6
13
.0
9.
2
1.3
1.
6
21.1
12
.6
56 to
65
6.3
4.
4
5.5
4.
9
11.2
12.9
2.
0
1.7
19
.2
12.0
O
lder
than
65
3.
1
3.8
11
.8
3.
2
5.1
17
.8
2.2
1.
1
15.0
13
.5
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
6.8
11
.9
3.7
15
.2
7.7
8.
4
1.5
1.
5
31.8
14
.3
His
pani
c an
d N
on-W
hite
6.0
11
.5
3.5
17
.2
6.1
8.
6
1.3
1.
2
26.9
15
.2
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
6.
6
10.8
5.
1
11.2
9.
6
10.7
1.
0
1.0
24
.4
8.3
So
me
Col
lege
7.9
10
.5
5.5
13
.9
7.9
11
.7
1.5
1.
6
28.1
12
.5
Col
lege
Deg
ree
6.
3
13.8
2.
6
17.7
6.
2
7.2
1.
5
1.3
32
.6
15.0
Po
stgr
adua
te
5.
8
10.6
2.
7
16.8
7.
2
6.2
1.
5
1.5
32
.8
18.5
H
ouse
hold
Inco
me
Less
than
$50
,000
9.4
7.
3
7.6
12
.8
6.0
13
.4
2.1
2.
2
31.1
10
.4
$50,
000
to $
99,9
99
7.
7
13.0
4.
0
16.7
6.
2
9.7
1.
4
1.5
31
.1
14.4
$1
00,0
00 to
$17
4,99
9
4.9
14
.5
1.7
15
.8
8.3
6.
1
1.0
1.
0
29.5
15
.9
$175
,000
or M
ore
3.7
8.
6
1.9
16
.3
9.7
4.
0
1.6
0.
9
30.6
16
.9
Hou
seho
ld T
ype
Cou
ple
2.7
15
.1
1.8
18
.5
7.6
8.
3
1.3
1.
6
31.3
15
.2
Sing
le
18
.1
2.1
8.
9
7.7
6.
5
8.8
1.
9
0.9
28
.4
12.5
A
ll R
espo
nden
ts6.
6
11.8
3.
6
15.7
7.
3
8.4
1.
4
1.4
30
.5
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 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. Three to 13 percent of respondents reported that they were not previously familiar with the types of mortgages available, the process, interest rate levels, down payment or income requirements, or the type of credit history that was expected. First-time buyers 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, 26 percent of borrowers 35 years old or younger, indicated that they were not familiar with the process of taking out a mortgage. Nearly 20 percent of households with less than $50,000 in income indicated they were not familiar with the down payment required to purchase a house or the amount of money needed at closing. Eighteen percent of borrowers with credit scores below 620 reported that they were not familiar with the types of mortgages available. Mortgage Process The share of borrowers who reported they were not previously familiar with each facet of the mortgage process 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 high among Hispanics, non-white borrowers, and single-headed households. The shares of borrowers who were concerned about qualifying for a mortgage also declined as loan amount, education, credit score, and income increased. For example, 13 percent of non-Hispanic white borrowers reported that they were very concerned with qualifying compared to 27 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: 41 percent of those with scores below 620 were very concerned about qualifying, while nine percent of borrowers with scores of at least 720 reported that they were very concerned. More than 68 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 37 percent of first-time buyers indicated that they had a firm idea of the mortgage they wanted, 17 percent of first-time buyers indicated they had little idea of what type of mortgage they wanted, and 45 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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
14
Very
Som
ewha
tNo
t at A
llFi
rm Id
eaSo
me
Idea
Littl
e Id
ea
Loan
Typ
ePu
rcha
se1
9.5
15.5
18
.5
8.9
10.1
3.
2
16
.1
20.7
35.2
44.1
51.5
39.4
9.1
Firs
t-Tim
e H
omeo
wne
r218
.5
28.3
38
.7
14.9
18
.6
5.0
30.9
29
.3
40
.4
30
.2
37
.3
45
.3
17
.4
R
epea
t Hom
eow
ner
4.3
8.4
6.8
5.4
5.4
2.3
7.5
16.5
33.3
50.2
57.9
37.5
4.6
Non
-Occ
upan
t Ow
ner
3.1
4.4
4.9
5.0
3.6
0.5
6.1
9.3
24.0
66.7
74.7
24.3
1.0
Ref
inan
ce1
3.4
9.3
5.2
9.3
7.2
2.1
8.9
12.6
26.9
60.5
67.5
28.9
3.6
Hom
eow
ner C
asho
ut3
3.6
9.2
4.7
10.1
7.
6
2.
1
9.
9
15
.1
29
.8
55
.2
66
.4
29
.6
4.
1
H
omeo
wne
r Reg
ular
3.2
9.4
5.7
8.9
7.4
2.0
8.6
10.9
25.7
63.5
67.7
28.9
3.3
Non
-Occ
upan
t Ow
ner
3.0
9.4
4.3
7.8
2.6
3.0
6.5
13.1
20.7
66.2
72.3
25.1
2.6
Loan
Siz
e$5
0,00
0 or
Les
s14
.7
26.1
20
.7
22.8
20
.7
10.7
24
.0
19.1
34.8
46.1
57.9
32.4
9.6
$50,
001
to $
150,
000
9.3
16.5
15
.9
11.5
11
.0
2.8
15.3
20
.2
33
.5
46
.3
55
.7
35
.9
8.
4
$1
50,0
01 to
$30
0,00
05.
8
11
.8
12.2
8.
5
8.
0
2.
7
12
.2
17.3
30.3
52.4
59.3
34.1
6.6
Mor
e th
an $
300,
000
2.7
6.2
5.4
4.7
5.0
1.3
8.0
10.7
28.9
60.3
64.4
32.8
2.7
Cre
dit S
core
2
Low
er th
an 6
2010
.1
17.5
18
.2
13.3
16
.5
7.2
18.3
40
.6
37
.0
22
.4
45
.9
40
.1
14
.0
62
0 to
679
9.
8
16
.4
17.0
13
.3
12.0
3.
1
16
.8
26.8
39.8
33.4
55.6
36.5
7.8
680
to 7
19
9.8
15.9
15
.4
11.9
10
.9
4.8
15.7
24
.0
39
.8
36
.2
52
.8
38
.1
9.
1
72
0 or
Hig
her
4.3
9.9
9.2
6.6
6.3
1.5
10.0
9.
3
25
.7
64
.9
63
.4
32
.1
4.
5
R
espo
nden
t Age
35 Y
ears
or Y
oung
er
12.7
18
.3
25.6
10
.3
12.5
3.
5
19
.3
20.4
33.3
46.3
47.9
41.7
10.3
36 to
45
5.1
11.5
8.
7
7.
7
7.
5
2.
7
13
.2
16.9
33.0
50.1
56.2
37.7
6.2
46 to
55
3.8
8.4
6.3
8.0
6.3
2.0
8.5
15.4
30.8
53.9
65.5
29.8
4.7
56 to
65
3.6
10.2
5.
8
10
.1
7.0
2.2
9.3
15.3
29.6
55.1
68.2
27.6
4.3
Old
er th
an 6
5
4.3
12.1
7.
7
9.
6
9.
2
2.
5
8.
1
12
.6
24
.7
62
.7
68
.7
27
.6
3.
7
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
5.
8
11
.5
11.7
8.
3
8.
1
2.
8
11
.6
13.3
30.8
55.9
59.9
33.9
6.2
His
pani
c an
d N
on-W
hite
8.6
15.6
13
.4
11.3
10
.5
2.2
15.7
27
.0
32
.3
40
.6
57
.2
35
.6
7.
2
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
9.
6
19
.2
15.0
15
.6
12.0
4.
2
17
.2
21.8
38.4
39.8
53.6
37.8
8.6
Som
e C
olle
ge
7.4
13
.4
13.1
10
.9
10.4
3.
5
12
.1
20.8
35.2
43.9
56.8
35.1
8.1
Col
lege
Deg
ree
6.5
12
.7
13.0
8.
8
8.
5
2.
1
13
.2
16.7
29.8
53.4
60.6
33.1
6.3
Post
grad
uate
4
.3
8.4
8.9
4.8
5.9
1.9
10.4
11
.0
26
.2
62
.8
62
.0
33
.9
4.
1
H
ouse
hold
Inco
me
Less
than
$50
,000
13
.0
22.5
21
.2
16.7
16
.4
4.6
18.4
30
.4
37
.1
32
.5
49
.2
40
.1
10
.8
$5
0,00
0 to
$99
,999
7.9
15.4
15
.3
10.9
10
.4
3.0
16.1
19
.1
35
.8
45
.0
56
.1
35
.5
8.
4
$1
00,0
00 to
$17
4,99
9
3.5
6.8
6.8
5.2
4.5
1.8
8.4
11.0
27.2
61.7
64.4
31.8
3.8
$175
,000
or M
ore
1
.3
4.5
3.9
3.4
3.7
1.2
5.5
6.2
20.3
73.5
68.8
29.9
1.3
Hou
seho
ld T
ype
Cou
ple
5.7
11.3
10
.7
8.6
8.0
2.6
11.9
15
.7
31
.1
53
.2
60
.5
33
.7
5.
8
Si
ngle
8.9
16.0
16
.4
10.6
10
.8
2.9
14.8
20
.1
31
.5
48
.3
55
.5
36
.3
8.
2
A
ll R
espo
nden
ts6.
5
12
.5
12.1
9.
1
8.
7
2.
7
12
.7
16.8
31.2
52.0
59.2
34.4
6.4
Conc
erne
d Ab
out Q
ualif
ying
(Per
cent
age
Dist
ribut
ion)
Char
acte
ristic
s
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
Rate
s Av
aila
ble
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
Need
ed to
Q
ualif
y
Cred
itHi
stor
y or
Sc
ore
Mon
ey
Need
ed a
t Cl
osin
g
(Per
cent
age
Dist
ribut
ion)
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 o
ther
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
015.
Bas
ed o
n 6,
188
surv
ey re
spon
ses.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 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 buyers and 47 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 buyers and 50 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 six out of 10 were very confident in their ability to explain the process of taking out a mortgage, and fewer than four 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 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-four 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 50 percent among first-time buyers, borrowers 35 years old or younger, borrowers taking out loans of $150,000 or less, and borrowers with household income of less than $100,000. 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 buyers, those taking out loans of $50,000 or less, those with household incomes below $50,000, single households, and Hispanic or non-white borrowers. 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 balance many features when selecting a mortgage. Table 9 reflects that about 60 percent of all respondents and 66 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, nearly 86 percent of borrowers went to the lender directly. First-time homebuyers were somewhat more likely than other borrowers to use a broker, and the share who used a broker increased with loan size. Borrowers initiated contact with the lender or broker 67 percent of the time, lenders initiated contact 13 percent of the time, and a third party initiated contact for 20 percent of respondents. Lenders initiated contact for 20 percent of respondents who refinanced compared to six 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 (32 percent and 7 percent, respectively). Seven 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 (18 percent), those with credit scores lower than 620 (14 percent), those with household income less than $50,000 (13 percent), and respondents 35 years old or younger (11 percent).
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
16
Very
Som
ewha
tNo
t at A
llLo
an T
ype
Purc
hase
146
.2
49.9
3.
8
7.3
47.3
29.2
33.3
7.0
Firs
t-Tim
e H
omeo
wne
r240
.0
55.2
4.
7
11.3
60.1
36.5
46.6
9.6
Rep
eat H
omeo
wne
r48
.6
48.2
3.
2
5.0
40.8
26.2
26.2
5.6
Non
-Occ
upan
t Ow
ner
58.9
37
.3
3.8
4.
4
32
.3
16
.2
20
.8
5.
4
R
efin
ance
148
.7
47.0
4.
3
4.4
41.3
25.4
27.4
6.9
Hom
eow
ner C
asho
ut3
49.5
46
.5
4.0
4.
2
41
.7
26
.6
28
.5
7.
2
H
omeo
wne
r Reg
ular
47.7
47
.7
4.6
4.
4
42
.0
25
.2
26
.9
7.
3
N
on-O
ccup
ant O
wne
r51
.9
43.7
4.
3
4.5
33.5
19.9
26.0
1.8
Loan
Siz
e$5
0,00
0 or
Les
s32
.0
60.1
7.
9
14.4
57.3
40.6
43.6
17.5
$50,
001
to $
150,
000
42.8
52
.0
5.2
7.
3
50
.6
32
.6
38
.2
7.
9
$1
50,0
01 to
$30
0,00
047
.4
49.1
3.
5
5.7
44.2
25.3
29.9
6.3
Mor
e th
an $
300,
000
56.3
40
.8
2.8
3.
0
33
.9
21
.3
18
.5
5.
2
C
redi
t Sco
re2
Low
er th
an 6
2042
.3
51.1
6.
6
9.6
43.0
36.6
38.2
11.6
620
to 6
79
47.1
48
.7
4.2
6.
9
49
.0
31
.7
37
.5
6.
1
68
0 to
719
42
.0
54.2
3.
8
7.6
48.8
30.2
35.9
8.4
720
or H
ighe
r49
.5
46.7
3.
8
4.7
42.0
24.3
26.1
6.3
Res
pond
ent A
ge35
Yea
rs o
r You
nger
44.5
51
.6
3.9
8.
0
56
.5
33
.0
39
.7
8.
3
36
to 4
548
.0
48.5
3.
5
4.9
43.1
26.6
29.5
6.0
46 to
55
49.5
46
.6
3.8
4.
8
40
.5
25
.7
24
.9
6.
3
56
to 6
549
.5
46.0
4.
5
4.7
35.7
23.3
25.6
6.3
Old
er th
an 6
5
45.6
48
.6
5.8
7.
0
37
.9
24
.5
28
.3
8.
1
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
47
.3
49.0
3.
6
5.4
43.5
27.0
29.1
6.1
His
pani
c an
d N
on-W
hite
47.6
47
.1
5.3
7.
3
47
.0
28
.4
34
.6
9.
4
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
37.3
55
.0
7.7
11
.2
54
.0
38
.5
45
.0
11
.4
So
me
Col
lege
42.9
52
.4
4.7
7.
1
46
.4
29
.1
35
.5
7.
7
C
olle
ge D
egre
e
49.8
47
.0
3.2
4.
6
44
.8
25
.8
28
.5
6.
3
Po
stgr
adua
te
52
.8
44.2
3.
0
4.0
37.7
22.9
22.1
5.1
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
36
.2
55.8
8.
0
11.3
55.5
38.4
45.4
11.3
$50,
000
to $
99,9
99
42
.7
52.9
4.
4
6.7
50.6
30.5
36.4
7.6
$100
,000
to $
174,
999
52
.8
45.3
2.
0
3.4
38.3
22.4
22.4
4.9
$175
,000
or M
ore
61.9
35
.4
2.6
2.
3
27
.5
16
.1
13
.7
4.
2
H
ouse
hold
Typ
eC
oupl
e48
.6
48.0
3.
5
5.4
43.5
26.5
29.6
6.7
Sing
le
43
.9
50.2
5.
9
7.4
47.0
29.9
33.2
7.8
All
Res
pond
ents
47.4
48
.5
4.1
5.
9
44
.4
27
.4
30
.5
7.
0
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
17
Housing Counseling(Percent Who Received)
Directly Through Broker Borrower Lender Third PartyLoan Type
Purchase 1 54.8 44.5 61.5 6.2 32.3 10.3 First-Time Homeowner2 53.2 46.6 57.8 5.7 36.6 17.8 Repeat Homeowner 54.8 44.1 63.1 6.5 30.4 6.0 Non-Occupant Owner 62.7 37.3 67.8 6.8 25.4 4.7
Refinance 1 66.4 33.6 72.8 20.3 6.9 2.3 Homeowner Cashout3 65.7 34.2 75.5 17.7 6.8 2.4 Homeowner Regular 66.3 33.7 71.1 21.8 7.1 2.5 Non-Occupant Owner 70.9 29.1 71.4 22.5 6.1 0.9
Loan Size$50,000 or Less 86.3 13.0 72.3 11.3 16.4 7.8 $50,001 to $150,000 66.9 33.0 68.2 13.1 18.7 8.3 $150,001 to $300,000 55.7 43.8 65.4 12.5 22.0 6.5 More than $300,000 55.3 44.2 66.9 13.8 19.3 3.6
Credit Score 2
Lower than 620 52.3 47.7 61.6 21.8 16.5 13.6 620 to 679 56.2 43.3 63.9 14.3 21.8 9.6 680 to 719 55.5 44.3 63.2 13.0 23.8 8.4 720 or Higher 63.8 35.8 69.4 11.6 19.0 4.3
Respondent Age35 Years or Younger 58.0 41.8 66.0 7.8 26.2 11.1 36 to 45 54.0 45.7 66.0 13.6 20.4 6.8 46 to 55 62.7 36.8 68.9 15.1 15.9 4.3 56 to 65 65.9 33.4 67.6 14.6 17.8 3.8 Older than 65 68.0 31.6 66.0 17.9 16.1 2.3
Respondent Race/EthnicityNon-Hispanic White 62.4 37.3 69.1 11.6 19.2 4.6 Hispanic and Non-White 54.6 45.0 60.4 16.8 22.8 12.0
Respondent EducationHigh School or Less 58.8 40.4 64.4 16.3 19.4 7.2 Some College 59.7 39.7 64.0 12.9 23.1 8.5 College Degree 61.1 38.8 69.6 12.4 18.0 6.1 Postgraduate 60.8 38.9 67.1 12.3 20.6 4.7
Household IncomeLess than $50,000 61.7 38.1 60.6 16.0 23.4 12.5 $50,000 to $99,999 59.5 40.1 66.7 12.0 21.3 7.7 $100,000 to $174,999 59.5 40.0 68.1 13.1 18.9 3.3 $175,000 or More 62.6 37.1 72.4 12.0 15.7 2.5
Household TypeCouple 60.0 39.7 67.4 12.7 20.0 6.1 Single 61.6 37.9 65.5 13.9 20.6 7.7
All Respondents 60.4 39.3 66.9 13.0 20.1 6.5
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, 2015. Based on 6,188 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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
18
Number of Lenders Considered The survey asked borrowers about the number of lenders a borrower 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 16 percent indicated that they seriously considered more than two lenders. A slightly higher share of respondents who refinanced (52 percent) considered one lender compared to homebuyers (47 percent). The percentage of borrowers who considered only one lender was lower for borrowers reporting smaller loan size, lower credit score, less education, and lower household income and higher for older borrowers. Fifty-one percent of non-Hispanic white borrowers and 45 percent non-white or Hispanic borrowers seriously considered only one lender. Overall, 78 percent of borrowers applied to one lender. Seventy-four percent of homebuyers applied to one lender compared to over 80 percent of respondents who refinanced. First-time purchasers were the least likely to apply to one lender at 71 percent. Twenty-one percent of first-time purchasers applied to two lenders compared with 18 percent for borrowers as a whole. Borrowers aged 35 years old or younger reported applying to two lenders 20 percent of the time. Overall, four percent of borrowers applied to three lenders, and one percent applied to more than three lenders. The share of non-Hispanic white borrowers who applied to one lender was about five percentage points higher than the share for non-white or Hispanic borrowers (79 percent and 74 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, the lender’s location, 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 56 percent of borrowers. Having a local office or branch nearby was important to 51 percent of borrowers. Borrowers also identified factors that were 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 49 percent, respectively), and homebuyers were less likely than those refinancing loans to say that an agent or home builder’s recommendation was unimportant (46 percent and 82 percent, respectively). As shown in Table 12, 61 percent of all borrowers refinancing a mortgage reported that using a lender with an established banking relationship was important. Around 60 percent of first-time homebuyers and of borrowers aged 35 years or younger found recommendations from a friend, relative, or co-worker important in selecting a lender or broker. Homebuyers (54 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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
19
12
34
5 or
Mor
e1
23
45
or M
ore
Loan
Typ
eP
urch
ase
147
.7
37.1
12
.8
1.7
0.
7
73.8
20
.6
4.6
0.
8
0.2
Fi
rst-T
ime
Hom
eow
ner2
46.5
36
.0
14.5
2.
3
0.6
70
.8
21.0
6.
9
1.0
0.
3
Rep
eat H
omeo
wne
r48
.2
37.9
11
.7
1.4
0.
8
75.0
20
.8
3.2
0.
7
0.3
N
on-O
ccup
ant O
wne
r49
.7
36.8
12
.8
0.7
0.
0
79.9
16
.8
3.4
0.
0
0.0
R
efin
ance
151
.8
32.7
12
.5
1.8
1.
1
82.1
14
.6
2.4
0.
6
0.4
H
omeo
wne
r Cas
hout
351
.4
32.6
13
.2
1.6
1.
1
79.4
16
.8
2.9
0.
5
0.4
H
omeo
wne
r Reg
ular
52.2
32
.8
12.0
2.
0
1.0
83
.6
13.4
2.
0
0.7
0.
3
Non
-Occ
upan
t Ow
ner
50.6
33
.0
12.8
1.
3
2.2
84
.1
12.8
1.
8
0.0
1.
3
Loan
Siz
e$5
0,00
0 or
Les
s61
.9
25.5
11
.2
0.7
0.
7
83.3
13
.6
2.4
0.
7
0.0
$5
0,00
1 to
$15
0,00
055
.5
30.8
11
.0
2.0
0.
7
79.0
16
.5
3.4
0.
7
0.4
$1
50,0
01 to
$30
0,00
048
.3
36.2
12
.9
1.6
1.
0
76.7
18
.7
3.5
0.
6
0.5
M
ore
than
$30
0,00
041
.8
40.4
14
.9
1.7
1.
1
77.2
18
.4
3.8
0.
7
0.0
C
redi
t Sco
re2
Low
er th
an 6
2054
.8
32.7
10
.4
2.0
0.
0
72.5
22
.7
3.7
0.
9
0.2
62
0 to
679
51
.2
34.4
12
.0
1.6
0.
9
75.4
19
.0
4.4
1.
1
0.2
68
0 to
719
52
.7
32.4
12
.8
1.6
0.
4
77.0
18
.5
3.8
0.
5
0.2
72
0 or
Hig
her
47.9
36
.2
13.1
1.
8
1.1
79
.3
16.6
3.
2
0.6
0.
4
Res
pond
ent A
ge35
Yea
rs o
r You
nger
47.5
37
.6
12.0
2.
3
0.5
74
.0
20.0
4.
8
0.9
0.
3
36 to
45
46.3
36
.5
14.1
1.
6
1.4
75
.6
19.5
4.
0
0.8
0.
2
46 to
55
51.0
34
.3
12.8
1.
3
0.6
79
.6
17.3
2.
5
0.4
0.
2
56 to
65
52.6
32
.5
12.0
1.
6
1.3
82
.2
14.0
2.
7
0.5
0.
5
Old
er th
an 6
5
55.9
30
.1
11.9
1.
6
0.5
81
.9
14.7
2.
6
0.4
0.
5
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
51.4
34
.3
11.9
1.
6
0.8
79
.1
16.9
3.
1
0.6
0.
4
His
pani
c an
d N
on-W
hite
44.6
37
.2
14.7
2.
2
1.2
73
.9
20.0
4.
8
1.0
0.
2
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
61
.8
28.8
7.
0
1.6
0.
8
81.8
14
.0
3.1
0.
7
0.3
So
me
Col
lege
52.9
32
.3
12.6
1.
6
0.5
77
.7
18.0
3.
3
0.6
0.
3
Col
lege
Deg
ree
46
.6
37.4
13
.2
1.8
1.
1
76.0
18
.9
3.9
0.
8
0.4
Po
stgr
adua
te
45
.4
37.1
14
.6
1.8
1.
1
78.3
17
.6
3.4
0.
5
0.2
H
ouse
hold
Inco
me
Less
than
$50
,000
54.5
30
.3
10.9
3.
2
1.1
75
.9
17.6
4.
8
1.3
0.
5
$50,
000
to $
99,9
99
52
.0
33.6
12
.2
1.2
0.
9
77.5
17
.8
3.7
0.
5
0.4
$1
00,0
00 to
$17
4,99
9
46.5
37
.7
13.4
1.
5
0.9
77
.3
18.8
2.
9
0.7
0.
2
$175
,000
or M
ore
44.1
38
.9
14.5
1.
7
0.9
81
.4
15.6
2.
6
0.4
0.
0
Hou
seho
ld T
ype
Cou
ple
48.9
35
.7
12.7
1.
7
0.9
77
.7
17.9
3.
4
0.8
0.
2
Sing
le
52
.0
33.0
12
.5
1.7
0.
8
78.0
17
.2
3.8
0.
4
0.5
A
ll R
espo
nden
ts49
.7
35.0
12
.7
1.7
0.
9
77.8
17
.7
3.5
0.
7
0.3
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
015.
Bas
ed o
n 6,
188
surv
ey re
spon
ses.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
20
Important Not ImportantAll Mortgages
Established banking relationship 56.2 43.8 Local office 50.8 49.2 Used previously 37.2 62.8 Lender is a personal friend 14.1 85.9 Lender operates online 37.5 62.5 Recommended by a friend/relative/co-worker 39.9 60.1 Recommended by an agent/home builder 36.8 63.2 Lender reputation 71.0 29.0 Spoke borrower's primary language (not English) 11.3 88.7
PurchasesEstablished banking relationship 51.6 48.4 Local office 55.4 44.6 Used previously 24.4 75.6 Lender is a personal friend 15.0 85.0 Lender operates online 35.3 64.7 Recommended by a friend/relative/co-worker 48.5 51.5 Recommended by an agent/home builder 54.4 45.6 Lender reputation 71.1 28.9 Spoke borrower's primary language (not English) 11.0 89.0
RefinancesEstablished banking relationship 61.2 38.8 Local office 45.9 54.1 Used previously 51.2 48.8 Lender is a personal friend 13.2 86.8 Lender operates online 39.8 60.2 Recommended by a friend/relative/co-worker 30.5 69.5 Recommended by an agent/home builder 17.6 82.4 Lender reputation 70.8 29.2 Spoke borrower's primary language (not English) 11.6 88.4
Source: National Survey of Mortgage Originations, 2015. Based on 6,188 survey responses.
(Percentage Distribution)Table 11. Importance of Decision Factors in Choosing the Lender
Factors Importance of Factors
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 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
151
.6
48
.4
48
.5
51.5
54
.4
45
.6
Fi
rst-T
ime
Hom
eow
ner2
50.5
49.5
61.0
39
.0
62.5
37.5
Rep
eat H
omeo
wne
r51
.9
48
.1
41
.6
58.4
50
.1
49
.9
N
on-O
ccup
ant O
wne
r55
.0
45
.0
37
.7
62.3
46
.7
53
.3
R
efin
ance
161
.2
38
.8
30
.5
69.5
17
.6
82
.4
H
omeo
wne
r Cas
hout
359
.3
40
.7
30
.8
69.2
17
.5
82
.5
H
omeo
wne
r Reg
ular
61.8
38.2
30.8
69
.2
17.7
82.3
Non
-Occ
upan
t Ow
ner
67.7
32.3
26.1
73
.9
17.5
82.5
Loan
Siz
e$5
0,00
0 or
Les
s75
.8
24
.2
25
.5
74.5
22
.2
77
.8
$5
0,00
1 to
$15
0,00
058
.9
41
.1
36
.0
64.0
35
.4
64
.6
$1
50,0
01 to
$30
0,00
054
.1
45
.9
41
.9
58.1
39
.1
60
.9
M
ore
than
$30
0,00
053
.3
46
.7
44
.0
56.0
36
.8
63
.2
C
redi
t Sco
re2
Low
er th
an 6
2053
.1
46
.9
34
.8
65.2
39
.9
60
.1
62
0 to
679
52
.4
47
.6
38
.7
61.3
37
.6
62
.4
68
0 to
719
54
.8
45
.2
42
.4
57.6
39
.6
60
.4
72
0 or
Hig
her
58.1
41.9
40.1
59
.9
35.5
64.5
Res
pond
ent A
ge35
Yea
rs o
r You
nger
52.8
47.2
55.7
44
.3
51.4
48.6
36 to
45
53.7
46.3
44.5
55
.5
38.5
61.5
46 to
55
58.4
41.6
34.8
65
.2
31.5
68.5
56 to
65
61.8
38.2
26.5
73
.5
27.0
73.0
Old
er th
an 6
5
57.6
42.4
19.0
81
.0
20.9
79.1
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
55.7
44.3
36.8
63
.2
34.9
65.1
His
pani
c an
d N
on-W
hite
57.8
42.2
48.7
51
.3
42.3
57.7
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
59
.0
41
.0
34
.4
65.6
34
.3
65
.7
So
me
Col
lege
56.3
43.7
36.9
63
.1
36.9
63.1
Col
lege
Deg
ree
56
.4
43
.6
42
.2
57.8
37
.8
62
.2
Po
stgr
adua
te
54
.6
45
.4
41
.9
58.1
36
.4
63
.6
H
ouse
hold
Inco
me
Less
than
$50
,000
58.6
41.4
39.9
60
.1
40.1
59.9
$50,
000
to $
99,9
99
56
.5
43
.5
40
.4
59.6
37
.6
62
.4
$1
00,0
00 to
$17
4,99
9
55.2
44.8
39.6
60
.4
36.6
63.4
$175
,000
or M
ore
54.8
45.2
39.1
60
.9
31.4
68.6
Hou
seho
ld T
ype
Cou
ple
55.8
44.2
39.4
60
.6
36.5
63.5
Sing
le
57
.4
42
.6
41
.2
58.8
37
.7
62
.3
A
ll R
espo
nden
ts56
.2
43
.8
39
.9
60.1
36
.8
63
.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
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 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 97 percent of borrowers, a fixed-rate mortgage was important to 89 percent, and a low APR was important to 88 percent. Low closing fees were important to 84 percent of borrowers. Overall, 62 percent of respondents reported that a low down payment was important. Table 14 shows that borrowers with credit scores below 620 (81 percent), first-time homebuyers (74 percent), borrowers with at most a high school education (74 percent), and borrowers with income below $50,000 (72 percent) said 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 87 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 This 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 report a lender request for additional information than refinance borrowers. Table 15 shows that 17 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: 42 percent of borrowers with credit score lower than 620 and 28 percent of borrowers with credit scores between 620 and 679 were asked by the lender to resolve a problem compared to 23 percent of borrowers with scores between 680 and 719 and 10 percent of borrowers with scores 720 or greater. About 25 percent of all borrowers had to delay their closing date. Delays were somewhat more common for purchase mortgages than for refinances. The percentage of respondents who reported that the closing date had been delayed ranged from 26 to 35 percent across homebuyers and 18 to 25 percent for borrowers who refinanced. Almost 60 percent of respondents reported answering follow-up requests for more information, and one-fifth 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-six percent of borrowers with loans of more than $300,000 had to answer follow-up requests, while 40 percent of borrowers with loans of less than $50,000 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, those with loans for more than $300,000, and Hispanic and non-White borrowers.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
23
Important Not ImportantAll Mortgages
Low interest rate 97.4 2.6 Low APR 87.6 12.4 Low closing fees 83.8 16.2 Low down payment 62.3 37.7 Low monthly payment 81.2 18.8 Fixed interest rate 89.4 10.6 Term less than 30 years 61.3 38.7 No mortgage insurance 57.1 42.9
PurchasesLow interest rate 96.8 3.2 Low APR 87.2 12.8 Low closing fees 82.9 17.1 Low down payment 66.4 33.6 Low monthly payment 82.0 18.0 Fixed interest rate 88.9 11.1 Term less than 30 years 69.9 30.1 No mortgage insurance 53.9 46.1
RefinancesLow interest rate 98.0 2.0 Low APR 88.0 12.0 Low closing fees 84.8 15.2 Low down payment 57.9 42.1 Low monthly payment 80.3 19.7 Fixed interest rate 90.0 10.0 Term less than 30 years 51.9 48.1 No mortgage insurance 60.5 39.5
Source: National Survey of Mortgage Originations, 2015. Based on 6,188 survey responses.
(Percentage Distribution)Table 13. Importance of Decision Factors in Choosing the Mortgage
Factors Importance of Factors
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 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
166
.4
33.6
82
.0
18.0
53
.9
46.1
Fi
rst-T
ime
Hom
eow
ner2
74.3
25
.7
86.4
13
.6
45.3
54
.7
Rep
eat H
omeo
wne
r63
.3
36.7
80
.9
19.1
58
.5
41.5
N
on-O
ccup
ant O
wne
r50
.2
49.8
69
.4
30.6
62
.8
37.2
R
efin
ance
157
.9
42.1
80
.3
19.7
60
.5
39.5
H
omeo
wne
r Cas
hout
358
.3
41.7
79
.8
20.2
62
.7
37.3
H
omeo
wne
r Reg
ular
58.5
41
.5
80.6
19
.4
59.2
40
.8
Non
-Occ
upan
t Ow
ner
52.1
47
.9
80.2
19
.8
59.2
40
.8
Loan
Siz
e$5
0,00
0 or
Les
s64
.5
35.5
83
.9
16.1
49
.1
50.9
$5
0,00
1 to
$15
0,00
066
.5
33.5
82
.5
17.5
51
.0
49.0
$1
50,0
01 to
$30
0,00
064
.1
35.9
81
.3
18.7
58
.8
41.2
M
ore
than
$30
0,00
052
.8
47.2
78
.7
21.3
64
.2
35.8
C
redi
t Sco
re2
Low
er th
an 6
2081
.3
18.7
90
.8
9.2
57.1
42
.9
620
to 6
79
74.1
25
.9
87.1
12
.9
53.9
46
.1
680
to 7
19
69.5
30
.5
85.3
14
.7
52.5
47
.5
720
or H
ighe
r54
.8
45.2
77
.3
22.7
59
.3
40.7
R
espo
nden
t Age
35 Y
ears
or Y
oung
er69
.6
30.4
83
.5
16.5
49
.6
50.4
36
to 4
563
.3
36.7
80
.7
19.3
63
.3
36.7
46
to 5
561
.4
38.6
79
.7
20.3
59
.8
40.2
56
to 6
557
.5
42.5
81
.7
18.3
58
.2
41.8
O
lder
than
65
50
.6
49.4
78
.7
21.3
54
.1
45.9
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
59
.3
40.7
79
.2
20.8
55
.5
44.5
H
ispa
nic
and
Non
-Whi
te71
.1
28.9
87
.0
13.0
61
.7
38.3
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
73.6
26
.4
87.0
13
.0
56.4
43
.6
Som
e C
olle
ge
70
.0
30.0
86
.4
13.6
54
.9
45.1
C
olle
ge D
egre
e
61.1
38
.9
79.7
20
.3
57.9
42
.1
Post
grad
uate
51.9
48
.1
75.8
24
.2
58.3
41
.7
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
71
.6
28.4
88
.2
11.8
53
.4
46.6
$5
0,00
0 to
$99
,999
67.7
32
.3
85.2
14
.8
53.8
46
.2
$100
,000
to $
174,
999
59
.1
40.9
78
.6
21.4
60
.7
39.3
$1
75,0
00 o
r Mor
e
44
.3
55.7
68
.0
32.0
63
.0
37.0
H
ouse
hold
Typ
eC
oupl
e62
.0
38.0
80
.8
19.2
58
.0
42.0
Si
ngle
63.4
36
.6
82.4
17
.6
54.4
45
.6
All
Res
pond
ents
62.3
37
.7
81.2
18
.8
57.1
42
.9
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
25
Characteristics Resolved Credit Report Issues
Answered Follow-up Requests
HadMultiple
Appraisals
Redid Paperwork Due to Delays
Delayed ClosingDate
Loan TypePurchase 1 20.4 68.1 8.6 22.7 30.4
First-Time Homeowner2 24.1 68.3 11.6 24.4 34.0 Repeat Homeowner 19.6 68.3 7.1 21.8 28.5 Non-Occupant Owner 8.2 65.9 4.6 20.7 26.5
Refinance 1 14.1 49.7 5.7 16.7 19.4 Homeowner Cashout3 16.7 51.2 6.8 18.0 20.9 Homeowner Regular 12.7 47.6 4.6 14.9 17.7 Non-Occupant Owner 10.7 59.0 8.3 24.8 25.2
Loan Size$50,000 or Less 20.4 40.3 7.5 21.4 25.5 $50,001 to $150,000 16.8 55.4 7.2 20.6 27.7 $150,001 to $300,000 18.9 60.3 6.5 19.3 24.6 More than $300,000 15.1 65.8 8.3 19.3 22.2
Credit Score 2
Lower than 620 42.1 63.5 9.0 27.6 37.3 620 to 679 27.8 61.2 9.9 25.7 30.7 680 to 719 23.1 60.0 6.8 22.3 29.0 720 or Higher 10.0 58.1 6.3 16.6 21.1
Respondent Age35 Years or Younger 17.1 60.9 7.9 19.0 25.1 36 to 45 19.6 60.7 6.7 22.0 28.9 46 to 55 17.3 60.3 8.1 18.7 22.9 56 to 65 15.7 57.1 6.5 20.5 24.5 Older than 65 15.0 53.0 5.6 18.0 21.5
Respondent Race/EthnicityNon-Hispanic White 16.2 59.3 6.4 17.9 23.2 Hispanic and Non-White 20.7 59.2 9.6 25.5 30.8
Respondent EducationHigh School or Less 20.3 51.3 7.6 21.3 24.5 Some College 20.6 56.9 6.2 20.8 26.2 College Degree 17.0 60.3 8.1 18.7 26.0 Postgraduate 13.5 63.7 6.6 19.8 23.3
Household IncomeLess than $50,000 22.1 55.6 9.1 24.6 31.8 $50,000 to $99,999 18.7 58.1 6.9 20.5 26.0 $100,000 to $174,999 16.0 59.1 5.9 17.5 22.1 $175,000 or More 10.9 66.7 7.9 17.0 20.8
Household TypeCouple 17.5 59.7 7.0 19.2 24.2 Single 17.0 58.0 7.7 21.7 27.8
All Respondents 17.3 59.3 7.2 19.8 25.1 Source: National Survey of Mortgage Originations, 2015. Based on 6,188 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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
26
7. Closing on a Mortgage The survey asked questions about the closing process, including locking the interest rate, the sources of information used by borrowers about their closing, funding the closing costs, finding a settlement agent, title insurance, and other features of the mortgage. Tables 16 to 18 reflect the responses to these questions. Timing of Interest Rate Lock Survey respondents were asked when their interest rate was set or locked. Table 16 shows how the respondents reported the timing of their interest rate lock. Forty-two percent reported that their rate was set or locked when they applied for the loan, 45 percent indicated that their rate was set or locked between the application and closing dates, and 13 percent reported that their interest rate was set or locked around the time of closing. A majority of homebuyers indicated that their interest rate was set or locked between the application and closing dates, compared to a majority of refinancing borrowers who indicated that their rate was set or locked at application. Source of Information on Closing Documents Sixty-one percent of borrowers reported seeking information or input from the lender or broker on closing documents. Twenty-nine percent of all borrowers and 56 percent of first-time homebuyers asked their real estate agent for input about their closing documents. Eight to 29 percent of borrowers reportedly sought input from the settlement agent, an attorney, the title agent, or a trusted friend, and one 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 costs of closing the loan on 62 percent of loans. In purchase transactions, 79 percent of borrowers paid all closing costs, and the lender and seller were less likely to have paid some of the closing costs (11 percent and 36 percent of loans, respectively). For refinances, the lender paid some or all of closing costs for 28 percent of the loans, and the borrower paid some or all of the closing costs for 43 percent. Because costs could be funded through multiple sources, the percentages do not add up to 100 percent. Closing costs were added to the mortgage amount for 38 percent of loans—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 lists the responses to these questions. Nearly 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 investors and those who refinanced. Fifteen percent of borrowers
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
27
AtAp
plic
atio
nBe
twee
n Ap
plic
atio
n an
d Cl
osin
gAr
ound
Clos
ing
Lend
er o
r Br
oker
Pers
onal
At
torn
eyRe
al E
stat
e Ag
ent
Settl
emen
t Ag
ent
Title
Age
ntTr
uste
d Fr
iend
Hous
ing
Coun
selo
rLo
an T
ype
Purc
hase
133
.1
50.9
16.1
68
.4
11.1
50
.4
30.8
19
.1
26.2
1.
6
Firs
t-Tim
e H
omeo
wne
r233
.7
48.4
17.9
67
.4
11.7
56
.1
28.0
18
.0
40.4
2.
4
Rep
eat H
omeo
wne
r32
.5
52.6
14.9
69
.7
10.3
48
.4
32.0
19
.7
18.3
1.
2
Non
-Occ
upan
t Ow
ner
33.7
50
.8
15
.5
63.5
13
.7
37.6
35
.5
19.8
14
.6
0.8
R
efin
ance
150
.9
39.1
10.0
53
.1
3.7
5.
4
23.0
8.
0
12.5
0.
7
Hom
eow
ner C
asho
ut3
48.4
39
.8
11
.8
52.9
3.
4
5.6
22
.5
8.6
11
.2
0.5
H
omeo
wne
r Reg
ular
52.0
39
.0
9.
0
53
.6
3.9
5.
0
23.3
7.
5
13.5
0.
9
Non
-Occ
upan
t Ow
ner
56.4
35
.9
7.
7
50
.7
3.9
6.
6
24.0
8.
6
11.8
0.
7
Loan
Siz
e$5
0,00
0 or
Les
s46
.9
33.4
19.7
49
.2
6.4
15
.1
15.2
15
.7
19.6
4.
3
$50,
001
to $
150,
000
44.0
43
.9
12
.1
59.8
6.
0
28.3
23
.3
13.7
19
.5
1.4
$1
50,0
01 to
$30
0,00
039
.8
46.0
14.3
62
.0
7.7
31
.5
29.7
14
.0
20.9
1.
1
Mor
e th
an $
300,
000
40.6
47
.5
11
.8
63.0
9.
8
26.6
29
.7
13.0
17
.7
0.6
C
redi
t Sco
re2
Low
er th
an 6
2033
.7
46.2
20.1
57
.3
9.8
28
.1
24.9
13
.3
22.6
4.
3
620
to 6
79
40.2
44
.3
15
.6
60.8
5.
8
29.9
24
.2
13.6
20
.8
2.2
68
0 to
719
38
.7
47.5
13.8
62
.0
5.2
31
.0
24.6
14
.4
22.2
0.
6
720
or H
ighe
r43
.7
44.8
11.5
61
.3
8.5
28
.0
28.8
13
.7
18.3
0.
7
Res
pond
ent A
ge35
Yea
rs o
r You
nger
36.2
46
.9
16
.9
62.8
9.
4
44.5
24
.7
15.5
34
.3
1.9
36
to 4
537
.5
48.6
13.9
65
.5
8.0
29
.0
28.9
14
.5
20.8
1.
3
46 to
55
45.3
44
.0
10
.7
57.9
6.
2
21.6
28
.1
13.4
12
.4
0.8
56
to 6
546
.2
44.3
9.5
58.2
6.
7
19.7
26
.8
12.5
10
.2
0.9
O
lder
than
65
51
.2
36.4
12.4
57
.1
5.8
16
.8
27.2
10
.0
8.6
0.
4
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
42.3
45
.8
11
.9
61.8
7.
1
28.6
27
.1
12.7
19
.2
0.5
H
ispa
nic
and
Non
-Whi
te39
.8
43.5
16.7
59
.1
8.8
29
.3
27.0
16
.9
21.0
3.
1
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
40
.3
44.4
15.2
54
.9
5.0
25
.2
21.9
12
.9
15.6
2.
2
Som
e C
olle
ge
40
.8
46.9
12.3
58
.9
6.2
27
.0
26.5
14
.9
19.2
0.
9
Col
lege
Deg
ree
41
.8
44.7
13.4
64
.0
7.4
31
.9
26.8
14
.6
21.5
1.
6
Post
grad
uate
42.7
44
.7
12
.6
61.8
10
.1
27.9
30
.4
12.0
19
.3
0.5
H
ouse
hold
Inco
me
Less
than
$50
,000
41.7
41
.7
16
.6
59.3
5.
8
31.0
21
.6
15.2
23
.2
3.0
$5
0,00
0 to
$99
,999
40.1
45
.4
14
.5
60.9
7.
1
31.2
26
.5
13.9
21
.3
1.1
$1
00,0
00 to
$17
4,99
9
42.9
46
.6
10
.5
62.7
7.
7
27.2
28
.8
13.6
18
.5
0.6
$1
75,0
00 o
r Mor
e
43
.1
46.4
10.5
60
.4
10.4
23
.5
31.6
12
.1
13.6
0.
6
Hou
seho
ld T
ype
Cou
ple
41.1
45
.7
13
.2
61.0
7.
3
28.7
27
.3
14.1
18
.1
0.9
Si
ngle
43.2
43
.9
12
.9
61.3
8.
2
29.1
26
.5
12.7
24
.2
2.0
A
ll R
espo
nden
ts41
.6
45.2
13.1
61
.1
7.5
28
.8
27.1
13
.8
19.7
1.
2
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
.
Sour
ces
of In
put A
bout
Clo
sing
Doc
umen
ts(P
erce
ntag
e W
ho S
ough
t Inp
ut fr
om E
ach
Sour
ce)
Char
acte
ristic
s
Tabl
e 16
. Tim
ing
of In
tere
st R
ate
Lock
and
Sou
rces
of I
nput
Abo
ut C
losi
ng D
ocum
ents
, by
Loan
and
Dem
ogra
phic
Cha
ract
eris
tics
Lock
ed o
r Set
Inte
rest
Rat
e(P
erce
ntag
e Di
strib
utio
n)
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
015.
Bas
ed o
n 6,
188
surv
ey re
spon
ses.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
28
ByBorrower
ByLender
BySeller
By Adding toMortgage
Loan TypePurchase 1 79.0 10.9 36.0 18.4
First-Time Homeowner2 72.9 11.3 46.9 16.0 Repeat Homeowner 82.0 11.3 31.4 20.1 Non-Occupant Owner 86.2 6.3 16.8 18.0
Refinance 1 43.0 27.8 0.0 58.3 Homeowner Cashout3 36.9 24.3 0.0 69.0 Homeowner Regular 46.4 30.8 0.0 50.9 Non-Occupant Owner 48.6 23.3 0.0 59.4
Loan Size$50,000 or Less 58.3 22.9 12.5 43.3 $50,001 to $150,000 58.3 15.5 20.5 40.6 $150,001 to $300,000 62.5 18.6 21.0 36.4 More than $300,000 65.9 24.4 13.2 34.1
Credit Score 2
Lower than 620 48.0 18.9 25.9 40.3 620 to 679 51.5 19.2 23.9 42.9 680 to 719 59.9 19.7 20.3 37.5 720 or Higher 66.7 18.8 16.0 35.6
Respondent Age35 Years or Younger 69.1 14.4 34.2 24.9 36 to 45 62.5 19.0 17.0 33.4 46 to 55 58.1 21.6 13.2 43.5 56 to 65 57.8 20.3 10.3 47.6 Older than 65 54.2 24.0 7.5 52.2
Respondent Race/EthnicityNon-Hispanic White 61.6 18.2 18.3 39.0 Hispanic and Non-White 62.1 21.4 20.1 33.3
Respondent EducationHigh School or Less 57.3 18.7 17.1 41.1 Some College 55.9 19.9 19.8 40.8 College Degree 63.4 19.1 19.7 37.3 Postgraduate 66.7 18.3 17.3 33.3
Household IncomeLess than $50,000 56.1 17.1 21.7 40.8 $50,000 to $99,999 60.1 17.5 21.6 38.2 $100,000 to $174,999 64.6 21.3 17.0 37.5 $175,000 or More 66.8 20.8 11.6 32.2
Household TypeCouple 61.6 19.5 18.2 37.2 Single 62.0 17.5 20.5 38.5
All Respondents 61.7 19.0 18.8 37.5
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, 2015. Based on 6,188 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 5.0____________________________________________________________________________________A Profile of 2015 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
64.8
17
.5
16.5
2.
4
84.1
1.4
3.
8
Firs
t-Tim
e H
omeo
wne
r266
.9
11.3
20
.3
2.7
86
.6
1.
1
4.8
R
epea
t Hom
eow
ner
64.0
20
.8
15.1
2.
2
84.5
1.4
3.
1
Non
-Occ
upan
t Ow
ner
60.8
24
.4
8.9
1.
9
68.9
3.0
4.
4
Ref
inan
ce1
62.5
26
.9
12.5
2.
5
73.8
1.0
3.
4
Hom
eow
ner C
asho
ut3
66.3
24
.1
11.1
2.
5
75.8
0.9
2.
5
Hom
eow
ner R
egul
ar59
.9
28.7
14
.0
2.6
73
.3
1.
0
3.8
N
on-O
ccup
ant O
wne
r62
.1
28.2
8.
6
2.0
66
.1
2.
1
4.5
Lo
an S
ize
$50,
000
or L
ess
48.8
28
.9
10.5
9.
1
65.3
3.2
7.
6
$50,
001
to $
150,
000
63.4
19
.1
14.7
3.
1
80.8
1.2
4.
4
$150
,001
to $
300,
000
65.8
22
.0
14.8
2.
1
82.8
0.9
2.
8
Mor
e th
an $
300,
000
62.3
25
.6
14.8
1.
1
72.0
1.6
3.
3
Cre
dit S
core
2
Low
er th
an 6
2063
.8
19.7
19
.3
2.0
86
.7
1.
0
2.6
62
0 to
679
64
.3
19.7
15
.5
2.7
84
.4
1.
5
3.8
68
0 to
719
62
.5
21.1
13
.1
2.4
85
.0
0.
9
3.3
72
0 or
Hig
her
63.8
23
.2
14.3
2.
4
75.2
1.3
3.
8
Res
pond
ent A
ge35
Yea
rs o
r You
nger
64.1
19
.6
17.5
2.
6
85.5
1.2
3.
4
36 to
45
64.3
23
.7
15.4
2.
2
80.3
0.6
3.
5
46 to
55
62.2
22
.8
15.3
2.
2
76.7
1.3
3.
5
56 to
65
64.2
23
.3
12.2
2.
4
74.3
1.4
3.
9
Old
er th
an 6
5
63.4
20
.7
7.6
3.
1
72.5
2.3
4.
1
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
64.3
22
.3
12.8
2.
2
80.2
1.1
3.
5
His
pani
c an
d N
on-W
hite
61.8
21
.3
19.9
3.
1
76.1
1.7
3.
8
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
58
.0
21.7
14
.9
4.1
78
.1
1.
9
6.3
So
me
Col
lege
67.1
19
.7
13.8
2.
4
80.2
1.3
4.
0
Col
lege
Deg
ree
62
.9
23.1
15
.5
2.5
79
.6
0.
8
3.2
Po
stgr
adua
te
64
.2
22.9
14
.1
1.7
78
.0
1.
5
2.6
H
ouse
hold
Inco
me
Less
than
$50
,000
60.0
20
.5
16.9
4.
4
79.8
1.7
5.
8
$50,
000
to $
99,9
99
64
.8
19.8
15
.9
2.6
82
.1
0.
8
3.3
$1
00,0
00 to
$17
4,99
9
64.9
23
.9
12.9
1.
6
80.8
1.1
2.
7
$175
,000
or M
ore
62.7
25
.9
12.1
1.
4
67.8
2.0
3.
7
Hou
seho
ld T
ype
Cou
ple
63.7
23
.2
14.7
2.
4
79.1
1.1
3.
5
Sing
le
63
.7
18.7
14
.4
2.6
79
.2
1.
6
3.9
A
ll R
espo
nden
ts63
.7
22.0
14
.6
2.4
79
.1
1.
2
3.6
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
30
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, with a higher share for purchases than refinances. Among mortgage features reported, two percent of borrowers reported loans that included a pre-payment penalty, and one percent of borrowers reported that their loan included a balloon payment feature. 8. Satisfaction with Mortgage Terms, Mortgage Process, and
Information The survey asked borrowers about their satisfaction with the terms, interest rate, and closing costs received 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 response to these questions. Satisfaction with Overall Mortgage Terms Seventy-seven percent of respondents indicated that they were very satisfied with the general terms of their mortgage, and an additional 21 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 percent of respondents indicated that they were very satisfied that they received the lowest interest rate for which they could qualify, and 25 percent reported they were somewhat satisfied. Overall, five 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 (10 percent) and Hispanic or non-white borrowers (6 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. Eight percent were not satisfied that they had received the lowest closing costs. Borrowers older than 65 years (14 percent), borrowers with household income less than $50,000 (10 percent), and Hispanic or non-white
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
31
Very
Som
ewha
tNo
t at A
llVe
rySo
mew
hat
Not a
t All
Very
Som
ewha
tNo
t at A
llLo
an T
ype
Purc
hase
174
.9
23.0
2.
1
68.7
25
.8
5.5
55
.8
36.0
8.
2
Firs
t-Tim
e H
omeo
wne
r270
.9
26.5
2.
6
65.3
29
.4
5.3
59
.2
34.0
6.
9
Rep
eat H
omeo
wne
r77
.1
20.8
2.
1
71.7
22
.6
5.7
54
.2
37.1
8.
8
Non
-Occ
upan
t Ow
ner
77.9
21
.6
0.4
63
.2
32.1
4.
8
50.9
38
.5
10.6
Ref
inan
ce1
79.2
19
.2
1.6
71
.2
24.2
4.
6
60.3
32
.0
7.7
H
omeo
wne
r Cas
hout
376
.5
21.3
2.
2
69.1
26
.0
4.9
56
.7
34.4
8.
9
Hom
eow
ner R
egul
ar81
.7
17.1
1.
2
73.6
22
.5
4.0
63
.3
30.3
6.
5
Non
-Occ
upan
t Ow
ner
73.7
24
.8
1.5
63
.1
28.6
8.
3
55.7
33
.3
11.0
Loan
Siz
e$5
0,00
0 or
Les
s73
.1
24.9
2.
0
67.7
25
.6
6.6
60
.7
30.5
8.
8
$50,
001
to $
150,
000
77.0
21
.1
1.9
70
.5
24.0
5.
6
59.7
31
.6
8.7
$1
50,0
01 to
$30
0,00
076
.7
21.3
2.
0
68.9
26
.1
5.1
57
.4
34.5
8.
1
Mor
e th
an $
300,
000
77.9
20
.5
1.6
71
.1
24.8
4.
1
55.9
37
.7
6.5
C
redi
t Sco
re2
Low
er th
an 6
2069
.8
28.0
2.
2
67.4
23
.7
8.9
59
.4
30.5
10
.1
62
0 to
679
75
.0
21.9
3.
2
72.5
22
.8
4.7
62
.6
29.3
8.
1
680
to 7
19
74.7
23
.3
2.0
69
.0
25.8
5.
2
57.8
33
.4
8.9
72
0 or
Hig
her
78.9
19
.7
1.4
69
.6
25.7
4.
7
56.4
36
.1
7.4
R
espo
nden
t Age
35 Y
ears
or Y
oung
er76
.0
22.0
2.
0
68.1
27
.0
4.9
59
.9
33.1
7.
0
36 to
45
76.1
22
.3
1.6
72
.4
24.2
3.
4
57.4
36
.1
6.5
46
to 5
577
.1
21.1
1.
8
68.2
26
.9
4.9
57
.1
35.2
7.
7
56 to
65
78.4
19
.8
1.8
72
.2
22.7
5.
1
57.6
34
.0
8.4
O
lder
than
65
79
.0
18.5
2.
4
68.0
22
.1
9.9
56
.5
29.7
13
.8
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
79
.5
19.0
1.
5
72.0
23
.1
4.9
58
.4
34.3
7.
3
His
pani
c an
d N
on-W
hite
69.4
27
.6
3.0
63
.7
30.8
5.
5
56.6
33
.5
9.9
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
73.8
23
.4
2.8
70
.0
24.8
5.
2
61.8
29
.8
8.4
So
me
Col
lege
74.7
23
.2
2.1
68
.3
25.6
6.
1
58.2
32
.3
9.5
C
olle
ge D
egre
e
78.2
20
.6
1.3
70
.8
24.4
4.
7
59.1
34
.0
6.9
Po
stgr
adua
te
78
.8
19.1
2.
1
70.0
25
.5
4.5
54
.4
37.9
7.
8
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
69
.6
27.5
3.
0
64.3
29
.2
6.5
57
.1
33.4
9.
6
$50,
000
to $
99,9
99
76
.5
21.5
2.
1
70.6
24
.5
4.9
57
.9
33.4
8.
7
$100
,000
to $
174,
999
79
.6
19.1
1.
3
71.6
23
.3
5.1
59
.2
34.1
6.
8
$175
,000
or M
ore
81.7
17
.0
1.3
71
.2
25.1
3.
8
56.7
36
.8
6.5
H
ouse
hold
Typ
eC
oupl
e77
.7
20.6
1.
7
70.6
24
.5
4.9
58
.4
34.1
7.
5
Sing
le
74
.8
22.7
2.
5
67.8
26
.6
5.6
56
.7
34.1
9.
2
All
Res
pond
ents
77.0
21
.2
1.9
69
.9
25.1
5.
1
57.9
34
.1
8.0
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
015.
Bas
ed o
n 6,
188
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
age
Dist
ribut
ion)
Char
acte
ristic
sTe
rms
Inte
rest
Rat
eCl
osin
g Co
sts
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
32
borrowers (10 percent) were more likely to report being dissatisfied with their closing costs than other groups. Satisfaction with Lender or Broker Table 20 reflects the 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. Three out of four respondents were reported being very satisfied with their lender. Five percent reported being dissatisfied with their lender. Satisfaction with Mortgage Application Process Overall, more than 90 percent of respondents reported that they were very or somewhat satisfied with the mortgage application process. More than 60 percent reported they were very satisfied, and an additional 30 percent were somewhat satisfied. About eight percent were not satisfied. Investors who purchased a house (11 percent), borrowers with incomes $175,000 and above (11 percent), borrowers with loans larger than $300,000 (10 percent), and respondents with a postgraduate degree (nine percent) were more likely to report that they were dissatisfied with the application process. Satisfaction with Mortgage Closing Process Ninety-two percent of respondents reported that they were very or somewhat satisfied with the mortgage closing process. Sixty-six percent reported that they were very satisfied, and 26 percent reported that they were somewhat satisfied. Seven 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. Very high percentages of respondents indicated they were very or somewhat satisfied with the information (95 percent), with their settlement agent (95 percent), and timeliness of the mortgage disclosure process (92 percent). Borrowers with credit scores less than 620 (nine percent) and first-time homebuyers (six percent) were more likely to report that they were not satisfied with disclosures. Borrowers with credit scores below 620 (13 percent), investors who refinanced (10 percent), and respondents with a postgraduate degree (nine percent) were more likely to report that they were not satisfied with timeliness. Borrowers with loans below $50,000, borrowers with credit scores below 620, Hispanic and non-white borrowers, and borrowers with incomes less than $50,000 (five to eight percent in each group) were more likely to report that they were not satisfied with the settlement agent.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
33
Very
Som
ewha
tNo
t at A
llVe
rySo
mew
hat
Not a
t All
Very
Som
ewha
tNo
t at A
llLo
an T
ype
Purc
hase
172
.5
21.6
5.
9
57.3
32
.9
9.8
62
.5
27.6
9.
9
Firs
t-Tim
e H
omeo
wne
r270
.6
23.5
5.
8
55.3
35
.4
9.3
62
.4
27.1
10
.4
R
epea
t Hom
eow
ner
73.4
20
.8
5.7
59
.0
31.0
10
.0
62
.2
27.9
9.
9
Non
-Occ
upan
t Ow
ner
74.8
18
.2
7.0
54
.7
34.4
10
.8
65
.3
27.6
7.
0
Ref
inan
ce1
78.1
18
.6
3.3
66
.7
26.4
6.
9
69.4
23
.6
6.9
H
omeo
wne
r Cas
hout
376
.7
19.4
3.
9
67.3
25
.8
7.0
67
.9
24.1
8.
0
Hom
eow
ner R
egul
ar79
.9
17.7
2.
5
67.5
26
.4
6.1
71
.0
23.1
5.
9
Non
-Occ
upan
t Ow
ner
71.0
22
.3
6.7
57
.2
29.9
12
.9
65
.5
25.4
9.
2
Loan
Siz
e$5
0,00
0 or
Les
s73
.7
22.8
3.
4
60.7
33
.9
5.4
61
.9
29.4
8.
8
$50,
001
to $
150,
000
75.6
20
.0
4.4
63
.4
28.7
8.
0
68.4
24
.1
7.5
$1
50,0
01 to
$30
0,00
075
.3
19.6
5.
1
62.5
29
.5
8.0
65
.7
25.5
8.
8
Mor
e th
an $
300,
000
74.6
21
.1
4.3
58
.4
31.4
10
.2
62
.8
27.9
9.
2
Cre
dit S
core
2
Low
er th
an 6
2070
.4
25.3
4.
3
55.5
32
.6
12.0
65.4
23
.3
11.3
620
to 6
79
75.1
18
.6
6.3
63
.0
27.2
9.
9
65.0
24
.0
11.0
680
to 7
19
75.3
20
.7
4.0
61
.2
31.5
7.
3
65.3
26
.4
8.3
72
0 or
Hig
her
75.7
20
.0
4.3
62
.3
29.8
7.
9
66.3
26
.2
7.5
R
espo
nden
t Age
35 Y
ears
or Y
oung
er73
.7
21.4
4.
9
60.4
31
.9
7.7
65
.5
26.2
8.
3
36 to
45
73.0
22
.6
4.4
60
.1
32.5
7.
5
61.6
28
.8
9.6
46
to 5
575
.2
19.9
5.
0
62.5
28
.3
9.2
66
.0
26.0
8.
0
56 to
65
78.9
16
.8
4.3
64
.5
26.9
8.
5
69.9
22
.4
7.7
O
lder
than
65
78
.2
17.3
4.
4
63.8
25
.4
10.8
70.0
21
.6
8.4
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
77
.4
17.9
4.
7
63.5
28
.2
8.3
68
.0
24.3
7.
7
His
pani
c an
d N
on-W
hite
68.7
26
.8
4.5
56
.9
34.3
8.
9
59.4
29
.7
10.8
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
76
.4
18.3
5.
3
64.6
27
.7
7.7
69
.4
23.2
7.
4
Som
e C
olle
ge
74
.4
20.5
5.
0
62.8
29
.7
7.5
64
.8
26.8
8.
4
Col
lege
Deg
ree
76
.8
19.3
3.
9
63.0
28
.2
8.8
66
.9
23.7
9.
4
Post
grad
uate
73.2
21
.8
5.0
58
.0
33.0
9.
1
63.7
28
.5
7.8
H
ouse
hold
Inco
me
Less
than
$50
,000
73.3
21
.0
5.7
59
.5
32.1
8.
4
64.5
26
.7
8.8
$5
0,00
0 to
$99
,999
75.5
20
.5
4.0
63
.1
29.4
7.
5
66.8
24
.7
8.5
$1
00,0
00 to
$17
4,99
9
75.6
19
.6
4.7
62
.7
29.0
8.
3
65.8
25
.6
8.6
$1
75,0
00 o
r Mor
e
75
.6
19.5
4.
9
59.6
29
.4
11.0
65.1
27
.1
7.8
H
ouse
hold
Typ
eC
oupl
e75
.2
19.9
4.
8
61.5
29
.8
8.7
65
.8
25.5
8.
7
Sing
le
75
.0
20.9
4.
1
62.6
29
.6
7.7
65
.8
26.3
7.
9
All
Res
pond
ents
75.2
20
.2
4.6
61
.8
29.8
8.
4
65.8
25
.7
8.5
So
urce
: Nat
iona
l Sur
vey
of M
ortg
age
Orig
inat
ions
, 201
5. B
ased
on
6,18
8 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 oth
er 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 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
Dist
ribut
ion)
Char
acte
ristic
sLe
nder
or B
roke
rAp
plic
atio
nCl
osin
g
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
34
Very
Som
ewha
tNo
t at A
llVe
rySo
mew
hat
Not a
t All
Very
Som
ewha
tNo
t at A
llLo
an T
ype
Purc
hase
162
.4
32.2
5.
4
60.8
30
.0
9.2
68
.1
26.5
5.
4
Firs
t-Tim
e H
omeo
wne
r259
.5
34.8
5.
7
58.0
32
.5
9.6
65
.8
28.9
5.
3
Rep
eat H
omeo
wne
r63
.8
30.8
5.
5
62.3
28
.7
9.0
69
.6
25.0
5.
4
Non
-Occ
upan
t Ow
ner
66.1
29
.9
4.0
63
.3
27.4
9.
3
69.0
25
.5
5.5
R
efin
ance
167
.9
27.5
4.
7
68.1
24
.9
7.0
72
.8
22.0
5.
3
Hom
eow
ner C
asho
ut3
66.6
28
.3
5.1
66
.9
25.3
7.
7
73.0
21
.6
5.5
H
omeo
wne
r Reg
ular
69.0
27
.0
4.1
69
.7
24.1
6.
1
73.4
21
.6
5.0
N
on-O
ccup
ant O
wne
r65
.6
27.1
7.
2
60.8
29
.1
10.1
66.9
26
.9
6.3
Lo
an S
ize
$50,
000
or L
ess
65.7
29
.1
5.2
60
.6
31.3
8.
1
64.8
27
.1
8.1
$5
0,00
1 to
$15
0,00
067
.0
28.4
4.
6
65.4
26
.4
8.2
70
.8
24.4
4.
7
$150
,001
to $
300,
000
65.9
28
.9
5.2
65
.5
26.5
8.
0
71.1
23
.2
5.7
M
ore
than
$30
0,00
060
.4
34.2
5.
4
60.9
30
.6
8.5
69
.1
25.8
5.
1
Cre
dit S
core
2
Low
er th
an 6
2062
.7
28.8
8.
5
63.3
23
.3
13.4
67.4
25
.5
7.1
62
0 to
679
65
.0
29.1
5.
9
62.0
28
.0
10.0
70.9
23
.0
6.1
68
0 to
719
64
.5
30.6
4.
8
61.9
30
.0
8.1
69
.2
26.0
4.
8
720
or H
ighe
r65
.4
30.1
4.
5
65.7
27
.2
7.1
70
.8
24.1
5.
1
Res
pond
ent A
ge35
Yea
rs o
r You
nger
62.3
33
.4
4.3
62
.1
30.5
7.
4
68.5
27
.0
4.5
36
to 4
563
.3
31.1
5.
5
62.7
27
.8
9.5
68
.9
25.2
5.
9
46 to
55
64.9
29
.9
5.3
65
.0
27.3
7.
7
70.8
24
.1
5.1
56
to 6
569
.7
26.3
4.
0
67.5
24
.9
7.5
74
.0
20.4
5.
6
Old
er th
an 6
5
68.8
23
.8
7.4
67
.0
24.0
9.
1
71.7
22
.0
6.3
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
67
.5
27.8
4.
7
67.1
25
.2
7.6
73
.7
21.8
4.
5
His
pani
c an
d N
on-W
hite
57.8
36
.2
6.1
56
.0
34.3
9.
7
60.5
31
.6
7.9
R
espo
nden
t Edu
catio
nH
igh
Scho
ol o
r Les
s
66.7
27
.4
5.9
68
.1
25.0
6.
9
71.3
23
.3
5.4
So
me
Col
lege
65.9
29
.7
4.4
62
.6
28.9
8.
5
69.5
25
.8
4.8
C
olle
ge D
egre
e
65.4
29
.6
5.0
64
.8
27.1
8.
2
72.3
22
.0
5.6
Po
stgr
adua
te
63
.0
31.7
5.
4
63.3
28
.2
8.5
68
.0
26.6
5.
4
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
64
.0
29.6
6.
4
60.9
29
.0
10.1
65.4
27
.2
7.4
$5
0,00
0 to
$99
,999
65.6
30
.0
4.4
64
.3
28.2
7.
5
71.4
23
.7
4.8
$1
00,0
00 to
$17
4,99
9
66.2
28
.6
5.2
66
.7
25.2
8.
1
71.5
23
.7
4.8
$1
75,0
00 o
r Mor
e
62
.4
32.8
4.
8
63.3
28
.9
7.8
71
.1
23.6
5.
3
Hou
seho
ld T
ype
Cou
ple
64.9
30
.1
4.9
64
.5
27.3
8.
2
71.3
23
.5
5.3
Si
ngle
65.2
29
.4
5.4
63
.6
28.3
8.
1
67.7
26
.8
5.5
A
ll R
espo
nden
ts65
.0
29.9
5.
1
64.3
27
.6
8.2
70
.4
24.3
5.
3
Sour
ce: N
atio
nal S
urve
y of
Mor
tgag
e O
rigin
atio
ns, 2
015.
Bas
ed o
n 6,
188
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
.
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
Dist
ribut
ion)
Char
acte
ristic
sDi
sclo
sure
sTi
mel
ines
sSe
ttlem
ent A
gent
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
35
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, 96 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 nine out of 10 respondents agreed that late payments would lower their credit ratings. This opinion was shared by most respondents, ranging from 95 percent for repeat homebuyers to 86 percent for respondents with at most a high school education. Fourteen 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 eight percent for borrowers with incomes above $175,000 to 20 percent among those who borrowed $50,000 or less. Mortgage Default and Borrower’s Financial Interest An estimated six 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 with credit scores below 620 (four percent) were least likely to agree with this statement. Nine percent of Hispanic or non-white borrowers, nine percent of refinancing investors, and eight percent of borrowers with mortgages above $300,000 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 on 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-two percent of respondents indicated that the number of homes available for sale in their neighborhood experienced little or no change, while slightly more than one-fifth reported that the number for sale had increased significantly (Table 23). About five 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. Borrowers with loans above $300,000 (six percent), borrowers with incomes above $175,000 (five percent), and borrowers with credit scores below 680 (nine percent) reported a decrease in available homes for sale, slightly more than other borrowers reported.
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
36
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
96.3
80.4
94.1
13.1
5.8
Firs
t-Tim
e H
omeo
wne
r297
.0
79
.4
93
.6
14
.2
6.
8
R
epea
t Hom
eow
ner
95.6
80.5
94.5
12.5
5.2
Non
-Occ
upan
t Ow
ner
97.7
83.9
94.3
12.7
5.5
Ref
inan
ce1
95.5
78.4
91.6
14.2
7.0
Hom
eow
ner C
asho
ut3
95.3
78.4
91.0
13.1
5.8
Hom
eow
ner R
egul
ar95
.4
79
.3
91
.8
14
.4
7.
6
N
on-O
ccup
ant O
wne
r97
.4
70
.9
93
.1
17
.6
9.
1
Lo
an S
ize
$50,
000
or L
ess
96.0
78.6
87.4
20.4
4.7
$50,
001
to $
150,
000
96.5
81.7
91.6
14.4
5.5
$150
,001
to $
300,
000
96.2
79.4
93.3
13.7
6.7
Mor
e th
an $
300,
000
94.5
76.2
94.9
11.3
7.5
Cre
dit S
core
2
Low
er th
an 6
2097
.0
71
.0
91
.1
18
.9
3.
9
62
0 to
679
97
.6
78
.5
91
.6
16
.4
5.
9
68
0 to
719
96
.1
79
.3
91
.4
16
.6
6.
4
72
0 or
Hig
her
95.2
80.6
93.9
11.4
6.8
Res
pond
ent A
ge35
Yea
rs o
r You
nger
96.6
80.9
94.9
12.6
7.1
36 to
45
95.8
77.8
94.7
13.8
8.1
46 to
55
95.0
79.1
92.4
14.2
4.9
56 to
65
96.0
79.5
90.6
12.7
4.7
Old
er th
an 6
5
96.2
80.0
88.3
16.5
6.4
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
95.7
81.3
93.9
11.2
5.5
His
pani
c an
d N
on-W
hite
96.6
73.8
90.2
20.6
9.1
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
97
.5
84
.8
86
.2
18
.3
5.
9
So
me
Col
lege
96.6
80.0
91.0
15.5
5.4
Col
lege
Deg
ree
96
.4
80
.1
95
.0
13
.5
6.
6
Po
stgr
adua
te
93
.9
75
.5
95
.0
9.
9
7.3
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
96
.5
79
.1
90
.0
18
.9
6.
5
$5
0,00
0 to
$99
,999
96.5
80.6
91.7
14.5
5.9
$100
,000
to $
174,
999
95
.9
79
.0
94
.4
12
.1
7.
2
$1
75,0
00 o
r Mor
e
93
.8
77
.6
96
.7
8.
4
6.2
Hou
seho
ld T
ype
Cou
ple
95.6
80.2
92.8
13.1
6.7
Sing
le
96
.9
77
.2
93
.3
15
.0
5.
5
A
ll R
espo
nden
ts95
.9
79
.4
92
.9
13
.6
6.
4
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
015.
Bas
ed o
n 6,
188
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 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
37
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o Ch
ange
Sign
ifica
ntly
De
crea
seSi
gnifi
cant
ly
Incr
ease
Littl
e or
No
Chan
geSi
gnifi
cant
ly
Decr
ease
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o Ch
ange
Sign
ifica
ntly
De
crea
seLo
an T
ype
Purc
hase
123
.2
72.8
4.
0
4.8
85
.6
9.7
5.
9
87.6
6.
5
Firs
t-Tim
e H
omeo
wne
r223
.5
73.8
2.
8
5.5
86
.3
8.2
6.
7
86.8
6.
5
Rep
eat H
omeo
wne
r23
.9
71.9
4.
2
4.3
85
.5
10.2
4.7
88
.3
7.0
N
on-O
ccup
ant O
wne
r17
.1
74.2
8.
7
4.8
82
.5
12.7
10.7
86
.0
3.3
R
efin
ance
123
.5
71.3
5.
1
5.7
84
.3
10.0
8.7
84
.6
6.7
H
omeo
wne
r Cas
hout
325
.0
70.5
4.
5
5.4
83
.4
11.2
9.0
83
.9
7.1
H
omeo
wne
r Reg
ular
23.2
71
.2
5.7
5.
9
84.3
9.
8
8.7
84
.8
6.5
N
on-O
ccup
ant O
wne
r18
.3
77.1
4.
5
5.8
88
.5
5.7
6.
9
87.2
5.
8
Loan
Siz
e$5
0,00
0 or
Les
s16
.5
79.4
4.
1
14.2
77
.0
8.8
14
.2
81.8
3.
9
$50,
001
to $
150,
000
18.9
77
.6
3.4
7.
1
85.8
7.
0
8.6
86
.4
5.0
$1
50,0
01 to
$30
0,00
024
.8
70.6
4.
5
4.4
84
.8
10.8
6.3
86
.5
7.1
M
ore
than
$30
0,00
028
.2
65.5
6.
3
2.6
84
.9
12.5
5.8
85
.8
8.4
C
redi
t Sco
re2
Low
er th
an 6
2025
.2
70.7
4.
1
8.7
82
.3
9.0
6.
2
88.7
5.
1
620
to 6
79
21.6
73
.9
4.5
5.
7
85.8
8.
4
8.7
84
.6
6.7
68
0 to
719
23
.2
72.4
4.
4
4.7
83
.7
11.6
6.5
86
.0
7.5
72
0 or
Hig
her
23.7
71
.6
4.6
4.
8
85.3
9.
9
7.1
86
.4
6.5
R
espo
nden
t Age
35 Y
ears
or Y
oung
er23
.4
72.3
4.
4
4.9
85
.7
9.4
6.
2
88.2
5.
5
36 to
45
27.3
67
.9
4.8
5.
1
85.9
9.
0
7.8
85
.8
6.4
46
to 5
524
.0
70.8
5.
3
5.7
83
.4
10.9
7.6
85
.2
7.3
56
to 6
519
.6
76.5
3.
8
5.5
84
.1
10.3
8.1
84
.7
7.2
O
lder
than
65
18
.5
77.3
4.
2
4.7
85
.3
10.0
6.5
85
.8
7.7
R
espo
nden
t Rac
e/Et
hnic
ityN
on-H
ispa
nic
Whi
te
21
.5
74.5
4.
0
4.8
86
.5
8.8
6.
0
88.2
5.
8
His
pani
c an
d N
on-W
hite
28.6
65
.2
6.1
6.
5
80.5
13
.0
10
.7
80.2
9.
0
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
21
.8
75.5
2.
7
6.8
83
.6
9.6
8.
3
83.7
8.
0
Som
e C
olle
ge
19
.1
75.5
5.
4
5.8
85
.1
9.1
7.
3
86.3
6.
4
Col
lege
Deg
ree
25
.4
70.1
4.
5
4.8
84
.4
10.8
6.9
86
.5
6.6
Po
stgr
adua
te
25
.2
70.1
4.
6
4.6
86
.2
9.3
7.
2
86.7
6.
1
Hou
seho
ld In
com
eLe
ss th
an $
50,0
00
19
.7
76.1
4.
2
6.6
84
.0
9.4
7.
6
84.6
7.
8
$50,
000
to $
99,9
99
22
.6
73.7
3.
8
6.4
85
.2
8.5
8.
5
85.2
6.
3
$100
,000
to $
174,
999
25
.4
69.1
5.
5
4.4
84
.7
10.9
5.3
88
.8
5.9
$1
75,0
00 o
r Mor
e
25
.8
69.2
5.
0
2.1
86
.0
11.9
7.2
85
.6
7.2
H
ouse
hold
Typ
eC
oupl
e24
.0
71.5
4.
5
4.8
85
.3
9.9
6.
5
86.8
6.
6
Sing
le
21
.6
73.8
4.
5
6.3
84
.0
9.6
9.
3
84.2
6.
5
All
Res
pond
ents
23.4
72
.1
4.5
5.
2
85.0
9.
8
7.2
86
.2
6.6
So
urce
: Nat
iona
l Sur
vey
of M
ortg
age
Orig
inat
ions
, 201
5. B
ased
on
6,18
8 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 oth
er 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
Dist
ribut
ion)
Char
acte
ristic
sNu
mbe
r of H
omes
for S
ale
Num
ber o
f Vac
ant H
omes
Num
ber o
f Hom
es fo
r Ren
t
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
38
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, five 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 (six percent) as homebuyers (five percent) reported a significant increase in vacant homes in their neighborhood over the last two years. Borrowers with loans below $50,000 (14 percent) were much more likely to report a significant increase in vacant homes in their neighborhood. Respondents with incomes above $175,000 (two percent) and borrowers with mortgages above $300,000 (three percent) were less likely to report a significant increase in vacant homes. Change in Number of Homes for Rent Overall, seven percent of respondents reported a significant increase in rental housing in their neighborhood, 86 percent of borrowers reported little or no change, and seven percent reported a significant decrease. Refinancing borrowers (nine percent) were more likely to report a significant increase in the number of rental properties in their neighborhoods than homebuyers (six percent). Borrowers with loans below $50,000 (14 percent) were more likely to report a significant increase in the number of rental properties in their neighborhoods than other borrower groups. Change in Number of Foreclosures and Short Sales About 81 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 (Table 24). Six percent of respondents reported a significant increase, while 13 percent reported a significant decrease. More refinancing borrowers (eight percent) than homebuyers (five percent) reported an increase in the number of foreclosures. Borrowers with loans less than $50,000 (13 percent, with credit scores below 620 (eight percent), a high school education or less (seven percent), and incomes below $100,000 (seven percent) reported an increase in the number of foreclosures. Change in House Prices Fifty-five percent of respondents reported that there was little or no change to house prices in their neighborhood over the last couple of years, while 40 percent reported a significant increase in prices and six percent reported significant decline in house prices in their neighborhood. However, respondents who took out mortgages above $300,000 (57 percent), borrowers with incomes above $175,000 (50 percent), and borrowers with postgraduate degrees (44 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 buyers, were less likely to report a significant decline in house price (four percent) than were respondents who refinanced a mortgage (eight percent).
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
39
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o Ch
ange
Sign
ifica
ntly
De
crea
seSi
gnifi
cant
ly
Incr
ease
Littl
e or
No
Chan
geSi
gnifi
cant
ly
Decr
ease
Sign
ifica
ntly
In
crea
seLi
ttle
or N
o Ch
ange
Sign
ifica
ntly
De
crea
seLo
an T
ype
Purc
hase
14.
9
83.5
11
.7
34
.0
62.5
3.
5
34.5
63
.6
1.8
Fi
rst-T
ime
Hom
eow
ner2
5.2
85
.6
9.2
30
.5
66.1
3.
5
29.2
68
.2
2.5
R
epea
t Hom
eow
ner
4.5
83
.2
12.3
36.4
60
.4
3.2
38
.3
60.2
1.
5
Non
-Occ
upan
t Ow
ner
5.8
75
.0
19.3
34.2
60
.4
5.5
33
.2
65.7
1.
1
Ref
inan
ce1
7.5
78
.4
14.0
46.0
45
.9
8.1
35
.9
60.7
3.
4
Hom
eow
ner C
asho
ut3
7.0
76
.5
16.5
48.6
45
.0
6.4
37
.8
58.7
3.
5
Hom
eow
ner R
egul
ar7.
8
80.0
12
.2
45
.2
45.9
8.
8
36.2
60
.6
3.1
N
on-O
ccup
ant O
wne
r8.
5
75.9
15
.6
37
.6
51.4
11
.0
23
.2
72.5
4.
3
Loan
Siz
e$5
0,00
0 or
Les
s13
.0
80.2
6.
8
23.1
66
.1
10.8
15.9
75
.4
8.7
$5
0,00
1 to
$15
0,00
07.
9
81.6
10
.6
29
.1
63.4
7.
5
25.4
70
.7
3.8
$1
50,0
01 to
$30
0,00
05.
4
81.7
12
.8
40
.1
54.9
5.
0
37.1
60
.9
1.9
M
ore
than
$30
0,00
03.
9
79.2
16
.9
57
.3
39.3
3.
4
49.0
50
.0
1.0
C
redi
t Sco
re2
Low
er th
an 6
207.
9
81.8
10
.3
30
.2
62.3
7.
5
26.2
67
.4
6.5
62
0 to
679
6.
8
79.9
13
.3
36
.3
59.4
4.
4
34.6
62
.3
3.2
68
0 to
719
5.
2
82.2
12
.6
37
.6
56.9
5.
5
34.4
62
.7
2.9
72
0 or
Hig
her
6.0
81
.0
13.0
42.4
51
.7
5.9
36
.6
61.5
1.
9
Res
pond
ent A
ge35
Yea
rs o
r You
nger
4.8
84
.1
11.1
37.3
59
.8
2.9
32
.1
65.3
2.
6
36 to
45
6.3
81
.8
11.9
41.3
53
.0
5.7
37
.6
60.0
2.
4
46 to
55
7.5
79
.0
13.5
39.0
53
.5
7.5
32
.9
64.4
2.
7
56 to
65
6.1
79
.1
14.7
40.3
52
.8
6.9
37
.7
59.7
2.
5
Old
er th
an 6
5
6.6
78
.4
15.1
43.3
49
.4
7.3
38
.7
58.8
2.
5
Res
pond
ent R
ace/
Ethn
icity
Non
-His
pani
c W
hite
5.9
82
.4
11.7
38.3
55
.9
5.8
33
.9
64.0
2.
1
His
pani
c an
d N
on-W
hite
6.9
77
.0
16.1
44.1
50
.5
5.3
38
.9
57.1
4.
0
Res
pond
ent E
duca
tion
Hig
h Sc
hool
or L
ess
7.
3
80.0
12
.7
28
.7
64.4
6.
8
26.4
68
.7
4.8
So
me
Col
lege
6.8
81
.4
11.7
36.8
57
.6
5.6
31
.3
65.3
3.
3
Col
lege
Deg
ree
5.
6
81.0
13
.4
42
.5
52.1
5.
4
37.9
59
.7
2.5
Po
stgr
adua
te
5.
7
81.3
13
.1
43
.8
50.6
5.
6
39.2
59
.8
1.0
H
ouse
hold
Inco
me
Less
than
$50
,000
7.0
81
.6
11.3
29.0
63
.8
7.2
26
.8
68.3
4.
9
$50,
000
to $
99,9
99
7.
8
80.7
11
.5
37
.3
57.4
5.
3
31.8
65
.2
3.0
$1
00,0
00 to
$17
4,99
9
4.5
81
.9
13.6
44.5
50
.0
5.5
39
.8
58.7
1.
6
$175
,000
or M
ore
4.0
79
.6
16.3
49.5
45
.2
5.2
45
.1
54.3
0.
6
Hou
seho
ld T
ype
Cou
ple
5.9
81
.2
12.9
40.4
53
.9
5.7
36
.2
61.3
2.
5
Sing
le
6.
9
80.5
12
.6
37
.9
56.6
5.
5
32.2
64
.9
2.9
A
ll R
espo
nden
ts6.
1
81.0
12
.8
39
.8
54.6
5.
7
35.2
62
.2
2.6
So
urce
: Nat
iona
l Sur
vey
of M
ortg
age
Orig
inat
ions
, 201
5. B
ased
on
6,18
8 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 oth
er 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 Di
strib
utio
n)
Char
acte
ristic
sNu
mbe
r of F
orec
losu
res
or S
hort
Sal
esHo
use
Pric
esO
vera
ll De
sire
ablit
y of
Liv
ing
Ther
e
NMDB® Technical Report 5.0____________________________________________________________________________________A Profile of 2015 Mortgage Borrowers
40
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 60 percent of respondents indicated that there had been little or no change in desirability, 35 percent reported a significant increase in desirability, and three percent reported a significant decline. Borrowers with loans greater than $300,000 (49 percent) and borrowers with household income greater than $175,000 (45 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, nearly 79 percent of all respondents expect house prices to increase, with 60 percent expecting that prices will increase a little and 19 percent expecting that prices will increase a lot. About 19 percent of respondents indicated that prices would remain about the same over the next couple of years, and about three 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 percent of borrowers expecting home prices to remain about the same and the percent of borrowers expecting price declines 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 shows that about 56 percent of respondents indicated that they expected overall desirability of their neighborhood to stay about the same, 42 percent of respondents expected neighborhood desirability to increase, and two percent of respondents expected neighborhood desirability to decrease. Homebuyers (45 percent) were more likely to expect neighborhood desirability to increase than refinancing borrowers (39 percent) and less likely to expect desirability to remain the same or decrease. Borrowers with loans for less than $50,000, borrowers with credit scores below 620, borrowers with at most a high school education, 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.
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Increasea Lot
Increasea Little
Remain About the Same
Decreasea Little
Decreasea Lot
Loan TypePurchase 1 19.7 59.6 18.6 1.6 0.5
First-Time Homeowner2 17.8 57.4 21.5 2.5 0.7 Repeat Homeowner 21.9 60.0 16.9 1.0 0.2 Non-Occupant Owner 13.8 66.8 17.6 1.3 0.5
Refinance 1 18.9 59.4 18.8 2.4 0.5 Homeowner Cashout3 19.2 59.2 19.6 1.8 0.3 Homeowner Regular 19.0 59.0 18.4 2.9 0.7 Non-Occupant Owner 17.1 63.3 18.0 1.5 0.0
Loan Size$50,000 or Less 12.3 45.1 35.4 6.4 0.7 $50,001 to $150,000 13.4 54.9 27.9 2.9 0.8 $150,001 to $300,000 21.1 62.8 14.4 1.4 0.3 More than $300,000 26.0 62.4 10.4 1.0 0.3
Credit Score 2
Lower than 620 26.7 47.2 21.5 3.6 1.1 620 to 679 21.4 56.2 20.0 1.8 0.5 680 to 719 20.7 57.5 19.8 1.4 0.6 720 or Higher 17.6 62.3 17.7 2.0 0.3
Respondent Age35 Years or Younger 18.4 59.3 19.5 2.1 0.6 36 to 45 19.4 59.2 18.4 2.5 0.4 46 to 55 19.4 60.0 18.4 1.9 0.4 56 to 65 19.7 59.5 18.7 1.7 0.5 Older than 65 21.1 59.4 18.1 1.1 0.3
Respondent Race/EthnicityNon-Hispanic White 17.2 60.3 20.1 1.9 0.4 Hispanic and Non-White 25.6 56.9 14.7 2.1 0.7
Respondent EducationHigh School or Less 18.7 49.6 28.2 2.3 1.2 Some College 20.4 55.6 21.6 2.1 0.3 College Degree 19.4 61.9 16.6 1.7 0.4 Postgraduate 18.7 64.2 14.7 2.1 0.4
Household IncomeLess than $50,000 16.7 50.7 29.4 2.7 0.5 $50,000 to $99,999 18.3 59.0 19.7 2.2 0.8 $100,000 to $174,999 21.4 62.9 14.3 1.3 0.2 $175,000 or More 21.3 64.3 12.4 1.9 0.2
Household TypeCouple 19.6 59.8 18.4 1.8 0.3 Single 18.6 58.5 19.6 2.4 0.9
All Respondents 19.4 59.5 18.7 2.0 0.5
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, 2015. Based on 6,188 survey responses.
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Become More Desireable Stay About The Same Become Less DesirableLoan Type
Purchase 1 44.9 54.1 1.0 First-Time Homeowner2 41.8 56.2 1.9 Repeat Homeowner 47.0 52.5 0.5 Non-Occupant Owner 44.2 55.8 0.0
Refinance 1 38.8 58.2 3.0 Homeowner Cashout3 37.9 58.9 3.2 Homeowner Regular 39.3 57.8 2.9 Non-Occupant Owner 40.1 57.2 2.7
Loan Size$50,000 or Less 20.7 71.8 7.6 $50,001 to $150,000 30.1 66.6 3.2 $150,001 to $300,000 45.0 54.0 1.1 More than $300,000 57.2 42.0 0.8
Credit Score 2
Lower than 620 36.7 57.8 5.5 620 to 679 44.3 53.6 2.1 680 to 719 38.9 59.1 1.9 720 or Higher 42.7 55.8 1.5
Respondent Age35 Years or Younger 44.3 53.3 2.5 36 to 45 44.5 54.3 1.3 46 to 55 39.9 57.6 2.5 56 to 65 39.0 59.7 1.3 Older than 65 39.1 58.7 2.1
Respondent Race/EthnicityNon-Hispanic White 39.8 58.7 1.5 Hispanic and Non-White 48.4 48.4 3.2
Respondent EducationHigh School or Less 31.0 65.5 3.6 Some College 38.8 58.9 2.2 College Degree 44.5 54.0 1.6 Postgraduate 46.5 52.0 1.5
Household IncomeLess than $50,000 30.9 66.2 2.9 $50,000 to $99,999 38.8 58.4 2.8 $100,000 to $174,999 46.9 52.0 1.1 $175,000 or More 53.4 46.3 0.3
Household TypeCouple 43.4 55.0 1.7 Single 37.9 59.3 2.8
All Respondents 42.0 56.1 1.9 Source: National Survey of Mortgage Originations, 2015. Based on 6,188 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 12.7 8.4 13.6 13.0 First-Time Homeowner2 1.8 8.7 14.5 11.7 Repeat Homeowner 17.3 8.3 13.1 14.1 Non-Occupant Owner 32.3 7.1 13.1 10.6
Refinance 1 24.1 12.6 15.9 18.9 Homeowner Cashout3 24.6 13.7 16.8 20.0 Homeowner Regular 23.2 12.4 15.4 18.6 Non-Occupant Owner 28.4 8.4 15.2 15.0
Loan Size$50,000 or Less 35.0 20.0 22.1 29.4 $50,001 to $150,000 18.5 10.2 14.9 17.5 $150,001 to $300,000 17.2 10.7 14.4 13.8 More than $300,000 17.2 9.0 14.0 14.9
Credit Score 2
Lower than 620 13.1 17.6 18.6 24.5 620 to 679 18.0 12.1 15.8 17.6 680 to 719 16.0 10.3 13.1 14.6 720 or Higher 19.4 9.2 14.4 14.6
Respondent Age35 Years or Younger 1.6 8.4 14.9 11.4 36 to 45 4.5 10.5 13.9 15.6 46 to 55 19.6 10.7 18.7 18.9 56 to 65 50.4 12.4 15.8 17.5 Older than 65 39.5 11.7 6.0 18.6
Respondent Race/EthnicityNon-Hispanic White 18.7 9.5 13.9 15.1 Hispanic and Non-White 16.6 13.2 17.0 17.8
Respondent EducationHigh School or Less 25.0 13.5 16.8 19.4 Some College 20.4 12.5 15.6 18.7 College Degree 14.7 9.0 13.9 13.8 Postgraduate 17.8 9.1 14.0 14.3
Household IncomeLess than $50,000 17.2 17.8 17.8 22.0 $50,000 to $99,999 17.5 10.5 13.8 15.4 $100,000 to $174,999 18.7 8.9 15.0 15.1 $175,000 or More 20.0 4.7 13.1 11.0
Household TypeCouple 18.7 9.8 14.7 15.6 Single 16.8 12.2 14.8 16.5
All Respondents 18.2 10.4 14.7 15.8
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.
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, 2015. Based on 6,188 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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Expectations of Retirement Eighteen percent of respondents indicated that they were very or somewhat likely to retire in the next couple of years. About 25 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 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 five percent of respondents aged 36 to 45 years old and two 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 32 percent of investors purchasing a home expressed that they were very or somewhat likely to retire in the near term. Expectations of Financial Difficulties Ten percent of respondents reported that they were very or somewhat likely to have difficulties in making their mortgage payments in the next couple of years. Thirteen percent of refinancing borrowers reported being very or somewhat likely to have difficulties in making mortgage payments compared to eight percent of homebuyers. Respondents with credit scores 620 and below (18 percent), high school education or less (14 percent), or household income less than $50,000 a year (18 percent) were more likely to believe they could have difficulties than other respondents. Respondents with credit scores of 720 or higher (nine percent), postgraduate degrees (nine percent), or household income of $175,000 or more (five 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 15 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 borrowers (16 percent), those borrowing $50,000 or less (22 percent), and those earning $50,000 or less (18 percent) were more likely to believe they are at risk than were other respondents. Sixteen 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. Refinancing borrowers (19 percent), respondents with household income of less than $50,000 (22 percent), respondents with credit scores below 620 (25 percent), and respondents with a high school education or less (19 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 85 percent of respondents indicated 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 (95 percent) and respondents with loans of more than $300,000 (91 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
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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 86.2 63.8 71.0 58.9
First-Time Homeowner2 82.0 75.9 73.5 64.2 Repeat Homeowner 87.7 57.1 69.6 55.8 Non-Occupant Owner 96.0 53.0 68.7 56.5
Refinance 1 83.8 52.8 70.2 50.5 Homeowner Cashout3 81.9 50.5 70.4 50.3 Homeowner Regular 84.4 54.6 69.7 49.8 Non-Occupant Owner 89.2 50.1 73.0 57.2
Loan Size$50,000 or Less 77.7 54.1 64.8 43.0 $50,001 to $150,000 82.4 56.5 69.4 53.3 $150,001 to $300,000 84.7 59.1 70.6 55.4 More than $300,000 90.6 61.0 73.1 58.1
Credit Score 2
Lower than 620 74.9 55.2 63.1 58.6 620 to 679 77.8 59.4 66.8 56.4 680 to 719 79.6 53.6 68.0 54.6 720 or Higher 89.8 59.9 73.2 54.1
Respondent Age35 Years or Younger 84.3 78.2 77.8 67.5 36 to 45 83.5 65.4 72.7 58.6 46 to 55 84.9 49.6 68.3 52.0 56 to 65 86.1 42.0 65.6 46.8 Older than 65 89.4 35.0 59.3 31.7
Respondent Race/EthnicityNon-Hispanic White 85.9 59.5 73.6 54.5 Hispanic and Non-White 82.5 55.6 61.9 56.0
Respondent EducationHigh School or Less 79.6 48.5 59.9 48.1 Some College 82.2 53.6 67.9 50.8 College Degree 86.3 62.9 73.3 60.0 Postgraduate 88.5 61.5 74.3 54.9
Household IncomeLess than $50,000 76.8 55.5 61.2 48.5 $50,000 to $99,999 81.8 58.9 69.8 53.6 $100,000 to $174,999 89.2 59.5 74.2 57.7 $175,000 or More 94.9 59.1 76.4 60.2
Household TypeCouple 85.7 59.2 71.7 56.6 Single 83.2 56.4 67.4 49.8
All Respondents 85.1 58.5 70.6 54.9
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, 2015. Based on 6,188 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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with household income less than $50,000 (78 percent) and respondents with only a high school education (80 percent) were less 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 Fifty-nine 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 (64 percent) believed they were very or somewhat likely to get significant help compared to refinancing borrowers (53 percent). Forty two percent of respondents aged 56 to 65 and 35 percent of respondents 65 years and older reported that they were very or somewhat likely to get significant help from family or friends, while 78 percent of respondents aged 35 years or younger and 76 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, 68 percent of respondents 35 years or younger, and 60 percent of respondents with incomes of $175,000 or more 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 respondents. Forty-seven percent of respondents aged 56 to 65 years old and 32 percent of respondents older than 65 years 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 five percent sample of residential mortgages. The project has three primary components: (1) the NMDB®7, (2) the quarterly NSMO8, 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 have 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
7 See National Mortgage Database Technical Report 1.2 for more details. 8 See National Survey of Mortgage Borrowers Technical Report 2.2 for more details.
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otherwise available in the database. The survey is voluntary and its target universe is newly originated closed-end first-lien residential mortgages and the associated borrowers. 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 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. However, where there are multiple addresses and borrowers associated with a survey sample loan, Table A-1 presents 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 in 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, one quarter of survey responses are 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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