What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law enacted in 1975 and amended in subsequent years. HMDA requires financial institutions to gather and report information about individual home mortgage loans and the activity in their local markets. This is to increase transparency so that individuals can better understand the state of the residential mortgage markets in Oklahoma. HMDA requires lenders to report certain data to the Federal Financial Institutions Examination Council (FFIEC) annually. This data includes information on the geography, loan amount, loan type, applicant and property information associated with all loan applications and associated decisions. The information helps to identify potential actions of discrimination and other unfair practices in the lending process. HMDA information can also be used to identify potential problems in Oklahoma’s residential mortgage market. This information can help to identify trends and problems in the lending process so that government agencies, consumer advocacy groups, and other stakeholders can address them. HMDA does not regulate the actual lending process, but it does provide data for oversight and enforcement of banking and consumer protection laws. This data helps to ensure that people have access to fair and responsible lending services, that the cost of these services is reasonable, and that people are protected from unfair practices in the mortgage market.

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What is the Home Mortgage Disclosure Act?

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