The Home Mortgage Disclosure Act (HMDA)

The Home Mortgage Disclosure Act (HMDA) is a U.S. federal law designed to promote transparency in mortgage lending. It requires banks and lenders to collect and report data about their mortgage applications, such as loan amounts, borrower demographics, and loan outcomes. This information helps government agencies and the public identify possible patterns of discrimination and ensure fair lending practices. By analyzing this data, policymakers can assess how well different communities are served by lenders, helping to promote access to homeownership and protect consumers from unfair practices.