FinanceRateCalc
FRC Statistic · FRC-022 · 2025 federal record

Is the small-loan penalty worse in expensive states?

4.45x
⟦FRC:small-loan-penalty-id-2025:4.45x:20b241fb:w2610⟧ verify · claim receipt: the hash changes if this figure is ever corrected

Yes: FinanceRateCalc's analysis of the 2025 federal HMDA record shows the small-loan FHA denial penalty (applications under $150,000 versus over $250,000) is largest in high-cost markets — ID 4.45x (53.4% vs 12.0%), UT 3.87x, WA 3.44x, OR 3.4x — while in lower-priced states such as Iowa (1.66x) and Michigan (1.63x) the penalty is milder. The penalty exceeds 1x in all 48 jurisdictions with a published split (floor 1.19x, PR). Observed rates, not adjusted for applicant mix; consistent with low-priced properties being the most marginal collateral in expensive markets, but the record cannot establish the mechanism.

Universe U-STATES-SMALLBIG-2025 (universes.json); regenerated from api/small-loan-penalty.json on 2026-09-22 by scripts/build_stat_smallloan.py. An earlier version of this page (2026-07-21) carried figures from a pre-correction universe (Idaho 3.2x, 38.3% vs 12.0%); see corrections.

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Source: CFPB HMDA 2025 (1,187,606 decisioned FHA applications), processed by FinanceRateCalc · methodology · all statistics

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