While there were fears that the Consumer Financial Protection Bureau’s new disclosure rules would slow mortgage lending in 2015, a new report from Equifax shows that lending grew dramatically during the year, according to HousingWire's Ben Lane.
According to the Equifax National Consumer Credit Trends Report for March 2016, the total balance of new first mortgages originated in 2015 was $1.82 trillion, which represents a 42.9% increase over 2014’s total of $1.27 trillion.
In other words, 2015 saw more than $546 billion in new first mortgages originated in 2015 than in 2014.
In terms of the total number of new first mortgages originated, 2015 also saw a sharp increase from 2014, albeit not quite as much as the total dollar amount.
Subprime borrowing also increased during the year.
Equifax’s report categorizes subprime borrowers as those with an Equifax Risk Score of 620 or below, and the report shows that lending to those borrowers rose significantly in 2015.
According to Equifax’s report, the total balance of new first mortgages originated to subprime borrowers was $59.7 billion in 2015, an increase of 41.3% over 2014.
Equifax’s report also showed that there were more than 366,900 loans originated to subprime borrowers, which represents an increase 25.2%.