What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law designed to protect consumers in the process of buying a home. It was passed in 1975 and amended in 2009. HMDA requires financial institutions to make certain information available to the public. This includes data on loan applications, loan denials, credit performance, and loan services. The Act also requires institutions to inform consumers of loan pricing, duration, and other required information. In California, the HMDA applies to state-chartered and federal banks, credit unions, mortgage brokers, mutual savings banks, and savings and loan associations. It requires these institutions to report the total number of loan applications received, the number of loans made, and the number of loans denied. Also reported are the income and race/ethnicity of applicants, the type of loan requested, the loan amount, and other related information. The HMDA information is made available to the public. It can be used to measure the degree of access to credit by different racial and income groups, as well as to ensure compliance with fair lending laws. The data also helps to inform consumer credit decisions by providing information about loan costs and loan performance. The HMDA also helps regulators and consumer groups monitor mortgage activities and evaluate consumer credit markets.

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What is the Home Mortgage Disclosure Act?

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