May 1, 2018

SD Tribal Mortgage Applicants See Higher Approval Rate for Manufactured Homes than Site-Built Homes

Recent lending data from Home Mortgage Disclosure Act (HDMA) data available through the Minneapolis Federal Reserve’s Reserve’s Center for Indian Country Development shows that American Indian home buyers were more likely to be approved for manufactured home mortgages than site-built mortgages.* The data show that mortgage origination rates for members of the Cheyenne River Sioux, Oglala Sioux, Rosebud Sioux, Standing Rock Sioux and Yankton Sioux Tribes were 55.7% for manufactured homes, compared to 51.2% for site-built homes.

total mortgage apps

The Standing Rock Sioux Tribe had the most mortgage approvals for both manufactured and site built homes from 2012-2016, with 66.7% originations for manufactured homes and 56.5% for site built homes. The Cheyenne River Sioux Tribe had the highest denial rates for both manufactured and site built homes, at 46.2% and 56.5%, respectively. Rates of mortgage application denials, loan originations, and those not accepted for both manufactured and on site homes can be viewed in the charts below:

manufactured

site built

Originally enacted by Congress in 1975, the rule-writing authority of the HDMA’s Regulation C’s was transferred to the Consumer Financial Protection Bureau (CFPB) in 2011. Home-loan application data are collected under Regulation C in order to help the public determine whether or not financial institutions are serving the housing needs of their communities or if discriminatory housing patterns exist. While HDMA data are a comprehensive source of publicly available mortgage information, not all lenders are required to report their data. Additionally, HDMA data is collected at the census tract level, which provides challenges for tribal areas as census tracts and reservation boundaries do not align.

For more information on HDMA data, its uses, and limitations, visit the Minneapolis Federal Reserve’s website.

*Data are not available for the Lower Brule Sioux Tribe, Crow Creek Sioux Tribe, Sisseton Wahpeton Oyate or Flandreau Santee Sioux Tribe.

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