What is the purpose of the HMDA?



The Home Mortgage Disclosure Act (HMDA) is a law passed in 1975 that mandates mortgage lenders maintain certain records. The goal is to create greater transparency and to protect borrowers in the residential mortgage market.

What is the one of the primary purposes of HMDA?

What is the purpose? needs; assist public officials in distributing public investment; assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes.

Why did the government create HMDA?

The HMDA was enacted in 1975 to provide the information needed to combat housing discrimination. After the 2008 housing market crash, the Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB) and put the HMDA in its care. It also updated the law to require that lenders report a greater amount of data.

What’s the purpose of the Home Mortgage Disclosure Act quizlet?





The primary purpose is to identify urban areas where the availability of home financing at reasonable terms is limited.

How does HMDA encourage fair lending?

HMDA requires covered mortgage lenders to collect and report mortgage lending data to allow regulators and others to identify possible discriminatory lending patterns and enforce fair lending laws.

What regulation is HMDA?

The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB).

Which loans are not covered under HMDA quizlet?

New loans made for purposes other than home improvement, home purchase, and refinancing are not covered even if they are secured by dwellings. Temporary loans, such as construction loans, are not covered.

What type of loan is excluded from being reported to HMDA?





A Closed-End Mortgage Loan or an Open-End Line of Credit that is or will be made primarily for business or commercial purposes, unless it is a Home Improvement Loan, a Home Purchase Loan, or a Refinancing. 12 CFR 1003.3(c)(10). Not all transactions that are primarily for a business purpose are Excluded Transactions.

What are the conditions for a non depository institution to be covered by HMDA?

Note: A non-depository institution is deemed to have an office in an MSA if it received applications for, originated, or purchased five or more home purchase or home improvement loans during the preceding calendar year on property located in that MSA.

What is reportable under HMDA?

HMDA requires lenders to report the ethnicity, race, gender, and gross income of mortgage applicants and borrowers. Lenders must also report information regarding the pricing of the loan and whether the loan is subject to the Home Ownership and Equity Protection Act, 15 U.S.C. 1639.

What are the three most common errors in HMDA reporting?

Common HMDA Errors to Check Before Filing

  • Reporting Cash-out Refinancing rather than Refinancing for the Loan Purpose. …
  • Reporting Withdrawn rather than Approved Not Accepted. …
  • Reporting the wrong score (or not reporting one at all for loans approved but not accepted)

Is HMDA data public information?

The HMDA data and reports are the most comprehensive publicly available information on mortgage market activity.



When did HMDA go into effect?

July 21, 2011

The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB).

How does HMDA impact a neighborhood or community?

Regulators use HMDA data to create greater transparency in the residential mortgage market and monitor the geographical areas served by mortgage lenders. The primary goal of the HMDA act is to provide the public with information on whether mortgage lenders serve the needs of communities where they are located.

When were the changes by Dodd Frank implemented for HMDA?

July 21, 2011

On July 21, 2011, the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 became effective. As a result, the annual HMDA Panel of reporting institutions has been modified beginning with the 2011 Panel. These changes are outlined in this article.



Is HMDA about fair lending?

The purpose of HMDA data collection is fair lending; however, institutions may also be examined for compliance with the Regulation C reporting requirements.

What loans are covered under HMDA?

Thus, a financial institution must collect, record, and report data for dwelling-secured, business-purpose loans and lines of credit that are home improvement loans, home purchase loans, or refinancings if no other exclusion applies.

Which of the following is not a consideration of HMDA?

Which of the following is not a consideration of HMDA? Answer: b) HMDA considers much more than race, national origin, and sex. Everything listed in these answers is considered through HMDA with the exception of previous employer.