What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that was enacted in 1975 by Congress to ensure the public can access information related to mortgage lending in the United States. It was intended to provide better access to home mortgage data so that citizens and organizations would be better informed about potential discrimination in the lending marketplace. The law requires mortgage lenders to make certain data public, such as specifying the types of loans that are made and the geographic distribution of loans by race, sex, and income of borrowers. For lenders in California, the HMDA requires lenders to collect, record, report, and disclose certain mortgage information. This includes the type of loan, the loan amount, the Loan-to-Value Ratio, and the purpose of the loan. The HMDA also requires lenders to disclose information about the costs of the loans, the number of loans made, the number of loan applications that were denied or withdrawn, and other information. Lenders are also required to report to the HMDA any changes or corrections to the information they reported. The HMDA data helps to inform the public about the availability of credit in their communities and serves as a way to identify potential discriminatory practices in the lending sector. Additionally, HMDA data can be used to monitor industry trends, track the performance of lenders, and decide whether to take any corrective action. The HMDA information can also help inform the public policy debates and decisions related to affordable housing and banking.

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What is the Home Mortgage Disclosure Act?

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