Category: Home Mortgage Disclosure Act
The Home Mortgage Disclosure Act (HMDA) is a federal law that requires many financial institutions to maintain, report, and publicly disclose information about mortgages. This legislation aims to provide transparency in lending practices, allowing for the monitoring of how loans are distributed across different neighborhoods and demographics. By mandating the disclosure of information such as the race, ethnicity, and gender of applicants, as well as the outcomes of their applications, HMDA helps identify patterns of discrimination and assess whether lenders are serving the housing needs of their communities fairly. The data collected under HMDA is used by regulators, researchers, and advocacy groups to promote fair lending practices and to address potential disparities in the mortgage lending process.
Resources:
- FFIEC-CFPB – Home Mortgage Disclosure Act