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

Federal Mortgage Law · 24% of the SAFE exameasy

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Correct answer: To require lenders to collect and report data on lending patterns to help identify potential discriminatory practices

HMDA (Regulation C) requires covered lenders to collect and publicly report data about mortgage applications and loans, including the applicant's race, ethnicity, sex, income, and the loan's terms. This data is used by regulators and the public to monitor lending patterns, detect potential discrimination (such as redlining), and enforce fair lending laws.

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