What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires certain financial institutions in Washington to make public certain information about their mortgage lending. This data includes information like the number of loans they have made, the types of loan applications they review, and the income levels of their loan applicants. The HMDA was originally passed into law in 1975, with the intention of ensuring that mortgage lenders in the US did not discriminate against loan applicants on the basis of their race, color, religion, national origin, or sex. The goal was to create a more level playing field for all potential borrowers, regardless of their backgrounds. In order to comply with the HMDA, lenders are required to keep accurate records of their lending activities and make them available to the public. This is done so that government agencies, like the Consumer Financial Protection Bureau (CFPB), can monitor the activities of lenders and make sure they are complying with the law. The HMDA has been very successful in helping to level the playing field for all potential borrowers. It has increased transparency in the lending industry and has helped to prevent discrimination based on race, ethnicity, or other factors. It has also helped to make sure that people of all backgrounds have access to secure credit and quality lending services.

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What is the Home Mortgage Disclosure Act?

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