What is the Home Mortgage Disclosure Act?

The Home Mortgage Disclosure Act (HMDA) is a federal law in the United States that requires certain financial institutions to collect and disclose data about their mortgage loan activities. HMDA was enacted in 1975 with the intention of increasing the availability of housing and improving the availability of credit for the general public. HMDA requires certain financial institutions that lend money for home purchases or refinancing in the United States to provide data about their mortgage lending activities. These institutions must collect information on the race, gender, and income of loan applicants and borrowers, the loan amounts, loan terms, and interest rates on the loans. The data collected under HMDA in Kansas is available to the public. This data assists in the analysis of residential mortgage lending patterns and in the enforcement of fair lending laws. Financial institutions must file this data with the Federal Financial Institutions Examination Council (FFIEC) and make it available to the public as well. In Kansas, the Division of Banks has authority to investigate and enforce violations of HMDA. They can also issue orders to cease and desist activities that violate HMDA, impose civil money penalties, and issue cease and desist orders for violations of other laws related to mortgage loans. HMDA is an important law in Kansas in ensuring fair lending practices and promoting availability of housing to its citizens. It helps to ensure that everyone has access to the same level of credit and that financial institutions are compliant with fair lending laws.

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What is the Home Mortgage Disclosure Act?

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