Last year, data powerhouse CoreLogic reported that 2015 Home Mortgage Disclosure Act (HMDA) data showed that collateral was noted as the third most-frequently-cited reason for denials (13.7%) for nearly 450k first-lien purchase mortgage applications on one- to four-family, owner-occupied homes. Interestingly, they now report that when viewed geographically, the data reveal wide variations at the state level in collateral-related loan denials, ranging from 7% in Delaware and 8% in Alabama, all the way to 20% in Ohio & Hawaii and 22% in Michigan.
“Although there were no specific details on why collateral was listed as a cause of denial, often it is caused by appraised values that come in below the buyer-and-seller’s negotiated price.”
Click here to read the full report on CoreLogic.com
