Accessible Version
The Decline in Lending to Lower-Income Borrowers by the Biggest Banks Accessible Data
Figure 1: Share of Mortgages to LMI Borrowers
| Year | Largest 3 banks | Other Banks | Nonbanks |
|---|---|---|---|
| 2010 | 32.4% | 35.9% | 38.1% |
| 2011 | 31.5% | 33.6% | 36.9% |
| 2012 | 28.4% | 32.3% | 35.7% |
| 2013 | 22.1% | 27.4% | 30.1% |
| 2014 | 18.8% | 26.3% | 28.4% |
| 2015 | 17.4% | 27.1% | 29.6% |
| 2016 | 14.8% | 25.3% | 27.6% |
Source: HMDA. Note: The nonbank category excludes lenders identified as subsidiaries or affiliates of depository institutions.
Figure 2: Difference in Within-County LMI Share for Largest Banks
| Year | Difference | Standard Error |
|---|---|---|
| 2010 | -2.6% | 0.3% |
| 2011 | -2.6% | 0.2% |
| 2012 | -4.1% | 0.3% |
| 2013 | -4.9% | 0.3% |
| 2014 | -6.1% | 0.3% |
| 2015 | -7.9% | 0.4% |
| 2016 | -8.3% | 0.4% |
Note: Graph shows coefficients on a dummy variable for the lender being Wells Fargo, JPMorgan Chase or Bank of America in a regression estimating the probability that the borrower was LMI, controlling for county fixed effects. Error bars show standard errors, which are clustered by county. Source: HMDA.
Figure 3: Share of FHA Mortgages
| Year | Largest 3 banks | Other Banks | Nonbanks |
|---|---|---|---|
| 2010 | 42.7% | 32.5% | 49.7% |
| 2011 | 40.2% | 25.7% | 42.5% |
| 2012 | 30.7% | 21.4% | 37.5% |
| 2013 | 18.4% | 15.5% | 30.4% |
| 2014 | 13.2% | 13.2% | 27.2% |
| 2015 | 11.0% | 15.9% | 32.3% |
| 2016 | 5.5% | 15.2% | 31.8% |
Source: HMDA
Figure 4: Changes in FHA and LMI Shares, 2010-2016
| Change in FHA Share | Change in LMI Share | |
|---|---|---|
| Largest 3 Banks | -37.2% | -17.4% |
| All Other Lenders | 14.4% | -9.2% |
| Largest Banks Assuming Smaller FHA Decline | N/A | -11.7% |
Source: HMDA
Last Update:
September 28, 2017