Home Mortgage Disclosure Act (HMDA)

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires mortgage lenders to collect and report certain information about their mortgage lending activities. The law was enacted in 1975 and is enforced by the Consumer Financial Protection Bureau (CFPB). The purpose of the law is to provide transparency and to help identify discriminatory lending practices.

Under HMDA, lenders are required to collect and report information about the race, ethnicity, sex, and income of borrowers, as well as the location and characteristics of the properties being financed. Lenders must also report information about loan approvals and denials, as well as the pricing and terms of loans.

The information collected under HMDA is used by regulators and other organizations to monitor mortgage lending practices and to identify areas where discriminatory practices may be occurring. The data is also used to assess the availability of mortgage credit in different communities and to identify emerging trends in the mortgage market.