Federal Mortgage Law · 24% of the SAFE exameasy
Correct answer: To ensure lenders are serving their communities fairly and not discriminating against borrowers
HMDA's primary purpose is to ensure lenders are serving their communities' credit needs, that public and private investment flows where needed, and that lenders are not engaging in discriminatory lending. It is a disclosure and data-collection law, not a rate-setting or loan-limit law. Options A, C, and D describe functions outside HMDA's scope — interest rate ceilings are governed by state usury laws, minimum down payments are set by loan program guidelines, and annual loan volume limits are not a federal regulatory concept under HMDA.
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