Which law requires lenders to report detailed information about loan transactions and borrower demographics?

The Home Mortgage Disclosure Act (HMDA) is the law that requires lenders to report detailed information about loan transactions and borrower demographics. This reporting helps ensure transparency in lending practices, allowing regulatory agencies to monitor and identify patterns of discrimination or unfavorable lending practices in various communities.

HMDA aims to provide the public with information that can be used to understand the lending patterns of financial institutions, allowing stakeholders, including policy makers, advocates, and the general public, to assess whether lenders are serving the housing needs of their communities. The data collected under HMDA includes information such as the types of loans, the purposes of the loans, and details about the borrower's race, ethnicity, and income. This transparency is crucial for enforcing fair lending laws and promoting equal access to credit for all borrowers.