What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires financial institutions in the United States to disclose information about their home mortgage lending activity. The Federal Reserve Board is responsible for enforcing this law in Delaware. HMDA requires banks, savings and loan associations, credit unions and other financial institutions to annually collect, report, and publicly disclose certain home mortgage loan data. This information includes the location of the bank or other financial institution, the number of applications received and granted, the amount of the loan, and the race and gender of the applicant. The information obtained from this disclosure is used by federal banking agencies, and other government agencies, to ensure compliance with fair lending laws and to protect consumers from predatory and discriminatory lending practices. In addition, home buyers, community organizations, and lenders rely on HMDA data when making decisions about where to buy or invest. The data can also be used to assess whether banks are serving their communities adequately based on the needs of the community. In Delaware, the Financial Institutions Division of the Office of the State Bank Commissioner is charged with the administrative responsibilities of implementing and enforcing this federal law. The Financial Institutions Division reviews the data collected to ensure that all institutions are compliant with HMDA. In order to ensure the accuracy of the data, the Financial Institutions Division checks for any discrepancies or errors before releasing the data to the public.

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What is the Home Mortgage Disclosure Act?

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