Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which organization is responsible for mapping lending patterns based on disclosed information?

1. Federal Reserve

2. Department of Housing and Urban Development (HUD)

3. Mortgage Bankers Association

4. Texas Real Estate Commission (TREC)

The correct answer is: Department of Housing and Urban Development (HUD)

The Department of Housing and Urban Development (HUD) is responsible for mapping lending patterns based on disclosed information, primarily through the implementation of the Home Mortgage Disclosure Act (HMDA). This act requires financial institutions to maintain and report specific data about mortgage loans, including the demographics of borrowers and loan types. By collecting and analyzing this data, HUD can gain insights into lending patterns, identify potential discriminatory practices, and ensure fair lending practices are followed across the nation. This is critical for monitoring compliance with fair housing laws and for promoting equal access to housing finance. In contrast, while the Federal Reserve does play a role in the overall regulation and monitoring of banks and credit, its direct involvement in mapping lending patterns is not its primary function. The Mortgage Bankers Association focuses more on representing the industry rather than conducting analyses of lending patterns, and the Texas Real Estate Commission (TREC) is primarily concerned with real estate licensing, regulation, and education within Texas, not national lending patterns.