HMDA Meaning and
Definition
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HMDA stands for the Home Mortgage Disclosure Act. It is a federal law enacted in 1975 in the United States. HMDA requires certain financial institutions to collect, report, and publicly disclose information about their mortgage lending activities. The ultimate goal of HMDA is to promote fair lending practices and prevent discriminatory practices in the mortgage industry.
Under HMDA, banks, credit unions, and other mortgage lenders must collect a range of data related to each mortgage application they receive. This data includes information about the applicant's race, ethnicity, sex, and income, as well as details about the loan itself such as the loan amount, interest rate, and type of mortgage product. This data is then reported to the appropriate regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB).
The purpose of collecting and reporting this data is to allow regulatory agencies and the public to monitor mortgage lenders for any patterns of discriminatory lending practices. By making this information publicly available, HMDA aims to promote transparency and accountability within the mortgage industry. It helps identify any instances where certain groups of people may be disproportionately denied mortgage loans or offered less favorable terms.
In summary, HMDA is a federal law that requires mortgage lenders to collect and report data about their lending activities to ensure fair lending practices and prevent discrimination in the mortgage industry.
Common Misspellings for HMDA
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