Quicken Loans Now Top Mortgage Lender to Indians

Mark Fogarty
8/20/16

It looks as if there was a new top mortgage lender to American Indians last year, Quicken Loans of Michigan. And, the mortgage bank approves more loans to Natives than it doesn’t.

According to an early look at data lenders filed in their 2015 Home Mortgage Disclosure Act reports, Quicken has displaced Wells Fargo Bank as the top lender to Native Americans, unless a firm that hasn’t revealed its HMDA data yet comes in higher than the Michigan-based lender’s $283 million in lending.

San Francisco-based Wells slipped to second, with $276 million in 2015. Mid America Mortgage, Addison, Texas, took the bronze, with $152 million.

For 2014, Wells was the leader in Native American mortgages. Quicken was second and Mid America third. The data comes from an early look at the 2015 HMDA data in the LendingPatterns tool of ComplianceTech, a fair lending software company that has obtained data from many lenders in advance of the government’s fall release of all lenders. The company is based in McLean, Virginia.

Both Quicken and Mid America granted more than half of their Indian mortgage applications last year, according to LendingPatterns data analyzed by Indian Country Today Media Network. Wells granted about 41 percent of applications.

Mid America approved 68 percent of Native applications, 826 out of 1,209. Quicken granted 1,514 of 2,309 applications, or 66 percent. At Wells, Indian borrowers found success 1,350 times out of 3,216 applications.

As of August 11, 44 percent of the 19,000 Native American applications reported by LendingPatterns’ Early Look responders had been approved, with 31 percent denied, six percent purchased, 11 percent withdrawn, and six percent incomplete.

These numbers are roughly comparable to full year 2014 apps, where 46 percent of apps were approved, and five percent purchased.

More than half of the 8,388 originated mortgages counted to date were conventional (non-governmental). Loans insured by the government’s Federal Housing Administration and the Department of Veterans Affairs showed strong volumes as well, with about 45 percent combined.

Some 80 percent of those American Indian mortgages were sold into the mortgage investor market, with only 20 percent not sold and kept in lender portfolios. Ginnie Mae is the biggest investor of mortgages made to Indians in 2015, at 34 percent. Ginnie Mae buys FHA and VA mortgages, as well as the American Indian mortgage at the Department of Housing and Urban Development, the HUD 184.

Fannie Mae is the second largest investor in this niche, at 20 percent. Non-agency investors came in at 16 percent, with Freddie Mac trailing at 12 percent.

Dollar volume through August 11 was $1.7 billion. First mortgages (more than 99 percent of volume) averaged $209,000, while second mortgages came in at $34,000 apiece.

Loan purpose was split very evenly, with 50 percent of the funds going for mortgages to purchase homes and 48 percent for refinancings.

Upper income borrowers took 55 percent of the funding dollars, while low income borrowers saw just five percent of the money.

Just two percent of mortgage dollars reported so far went towards manufactured homes, with almost all of the rest loaned for single-family homes. That percentage could rise when all mortgage volumes are disclosed.

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