What does the Home Mortgage Disclosure Act (HMDA) regulate?

The Home Mortgage Disclosure Act (HMDA) regulates the collection and disclosure of mortgage loan data. Its primary purpose is to provide the public with information about mortgage lending patterns and to ensure that financial institutions are serving the housing needs of their communities. By gathering data on the race, ethnicity, gender, and income of mortgage applicants, as well as on the loans themselves, HMDA aims to identify discriminatory lending practices and improve overall transparency within the mortgage market. This information is essential for policymakers, researchers, and advocacy groups to analyze lending trends and ensure compliance with fair lending laws.

The act does not pertain to issues like income tax data, homeowner's insurance regulations, or real estate transaction disclosures, which are governed by other laws and regulations. Thus, the focus of HMDA uniquely centers on mortgage loan data collection and disclosure.