What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires certain financial institutions to publicly disclose data regarding their mortgage lending activity. This data is collected and reported to the Consumer Financial Protection Bureau (CFPB) for review. The purpose of this law is to ensure that lenders are not discriminating against potential borrowers based on race, income, or other factors. In North Carolina, financial institutions that offer home mortgages must follow this law. The HMDA requires that lenders provide information about their mortgage activities each year. This includes the rate of approved and denied mortgage loan applications, the types of loans offered, and the type of applicant that applied. All this information is made publicly available by the CFPB for anyone to access. The CFPB may also use the data to identify lenders that have exhibited discriminatory lending practices, and may take appropriate enforcement action when needed. This helps to ensure that all potential borrowers are treated fairly and given equal access to financing opportunities. By providing this data to the public, the HMDA helps to promote transparency in the financial industry. By giving borrowers access to this information, they can better understand the mortgage lending process and make more informed decisions. It also allows for better industry oversight and makes it easier for federal agencies to investigate matters related to discrimination or other potential violations of lending law.

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What is the Home Mortgage Disclosure Act?

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