What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires financial institutions to report detailed information about their mortgage lending activities. Financial institutions include banks, savings and loan associations, and credit unions. HMDA was enacted in 1975 to help identify possible disparities in lending practices that may restrict access to credit for certain borrowers. HMDA requires certain financial institutions to reveal the geographic location of their mortgage loans, the types of loans they originate, the property types, the amount of the loan, the applicant’s race, income level, and more. This information is then made available to the public. The purpose of the HMDA is to bring transparency to the lending process so that it will benefit consumers, improve accountability, and prevent discriminatory practices. In Texas, the Department of Savings and Mortgage Lending is responsible for enforcing the HMDA. They conduct annual HMDA reviews and examinations of all financial institutions, including banks, savings and loan associations, and credit unions to ensure compliance with state and federal laws. Financial institutions are also responsible for ensuring their HMDA data is accurate and up-to-date. HMDA is an important tool for ensuring fair access to credit and combating discrimination in the financial sector. It can also help identify areas where more education or assistance may be needed in order to improve access to credit for all individuals.

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What is the Home Mortgage Disclosure Act?

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