What is the purpose of the Home Mortgage Disclosure Act (HMDA)?

The Home Mortgage Disclosure Act (HMDA) serves the important function of requiring lenders to disclose specific lending information. This act was enacted to provide the public and government with data about mortgage lending patterns, thereby promoting transparency in the home mortgage market. By requiring lenders to report details such as the race, ethnicity, and gender of applicants, as well as the types of loans and the outcomes of those applications, HMDA helps ensure that lenders are not engaging in discriminatory practices and assists in identifying patterns of lending discrimination.

This information can be used by various stakeholders, including community organizations, policymakers, and consumers, to evaluate lending practices and pursue remedies for unfair lending. The disclosure requirements are aimed at holding lenders accountable and ensuring equal access to mortgage financing for all segments of the community.