Independent Banker - June 2022 - 19

2020 HMDA data overview
Overall home loan originations saw an increase in 2020, while
nonbank mortgage lenders continue to be a competitive force in
the lending space. They doubled originations from the year prior
and saw a higher loan approval rate than did all originators.
Nonbank originations
JUNE 22 | 3 ET / 2 CT
Developing a
Funded loans
($ trillion)
2.625
All originations
Funded loans
# (in million)
8.82
Loan approval rate
(%)
59.8
Unapproved applications
($ trillion)
2.139
Customer-Centric
Digital Mortgage
Experience
Featuring:
Funded loans
($ trillion)
4.375
Funded loans
# (in million)
14.59
Loan approval rate
(%)
57.0
Unapproved applications
($ trillion)
3.703
Data compiled June 30, 2021. HMDA = Home Mortgage Disclosure Act. Based on data filed by lenders under the Home Mortgage
Disclosure Act for 2020. Analysis reflects the aggregate funding amount requests, broken down by funded and unapproved
applications for nonbank institutions. Credit: Augusto Justiniaro Jr. Source: S&P Global Marketing Intelligence.
Chris Fitzpatrick
Senior Manager,
Solution Consulting
Finastra
Cassie Tappa
Senior Product
Manager
Finastra
up front. They must reach certain
milestones in the project before the
bank can do inspections and then
lend money based on the value of the
work that has been done. The bank
also needs to see home plans and a
detailed cost breakdown that shows
where they are spending money
before it even approves the loan.
Bank of Zachary's lending team
not only has expertise in construction
lending; several of its lenders have also
built their own houses. " That expertise
in construction lending really sets us
apart from the banks and credit unions
we compete with in our market, and
I think we have become a premier
construction lender in the Greater
Baton Rouge area because of this, "
Prejean says. Landing the construction
loans also creates an opportunity
for the community bank to do the
permanent home loan once the home
is completed.
Community banks also rely on
relationships with realtors and
builders in their local communities
to generate referrals. " For us, it
really starts with the land loan. So,
we've created a niche as also being
one of the premier land lenders in
the market, " says Prejean. Once the
bank has the land loan, it retains the
construction loan the overwhelming
majority of the time, opening the door
to also originating the permanent
loan. " It's all about pipelining deals
and getting in on the front end when
they buy the land. That is the key. " 
Beth Mattson-Teig is a writer
in Minnesota.
Creating a more customized and
relevant end-to-end digital experience
for lenders and borrowers is
key to meeting the high standards
of digital engagement.
Join Finastra's experts for valuable
insights no matter what point
you're at in the digital journey.
REGISTER TODAY!
To register and view our full
library of free on-demand
webinars, visit the Independent
Banker Webinar Center at
Independentbanker.org
http://www.Independentbanker.org
Independent Banker - June 2022

Table of Contents for the Digital Edition of Independent Banker - June 2022
