What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires mortgage lenders to report certain information to the public. It was enacted in 1975 to make sure that lenders are not discriminating against certain individuals or groups when processing home loan applications. HMDA applies to all types of home loans, including mortgages, refinancing, and home equity loans. It applies to banks, savings and loan associations, credit unions, insurance companies, and other financial lenders that make home loans in South Carolina. Under HMDA, lenders must report information such as the number of loan applications received, the number of loan applications that were approved, the interest rate charged, and the type of loan requested. They must also report whether the loan was for a primary residence or other property, the race and gender of the borrower, and the census tract of the property. The purpose of HMDA is to make it easier for borrowers to compare loan costs and terms from different lenders, and to assist government regulators in enforcing the Fair Lending Laws. The information reported to the public helps regulators and borrowers determine if a lender is engaging in discriminatory practices. It also helps government agencies target areas of the state that may be experiencing higher levels of lending discrimination.

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What is the Home Mortgage Disclosure Act?

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