What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires lenders in the mortgage market to collect and disclose information about the home loan applications they receive. This information is used to inform the public about where home lenders are doing business and the types of loans they are offering. HMDA also provides a basis for identifying possible discriminatory lending practices in the mortgage market. In South Carolina, lenders and loan originators must comply with HMDA by collecting and reporting this data, including the information required under HMDA’s Regulation C. This includes the borrower’s ethnicity, race, and sex, the property’s location, the loan’s purpose, the terms of the loan, and the loan’s action taken. Lenders must also report any adverse action taken on applications, such as denial or withdrawal. HMDA data is collected annually and reported to the Federal Financial Institutions Examination Council, which makes the information available to the public. In South Carolina, the Department of Labor, Licensing, and Regulation is the HMDA-mandated state agency responsible for enforcement. HMDA data provides valuable information for policy makers, researchers, consumer advocates, and other stakeholders. It helps identify potential discriminatory lending trends and empowers individuals to find lenders who provide more fair loans and terms. It also helps lenders determine which markets may need more services and where they can focus their energies.

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What is the Home Mortgage Disclosure Act?

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