Definition
HMDA requires lenders to collect and report mortgage lending data including applicant demographics, loan terms, and approval/denial decisions. This transparency enables regulators to monitor lending patterns for discrimination. Data is publicly available.
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HMDA requires lenders to report detailed information on all mortgage applications, including applicant race, ethnicity, gender, and income, along with loan approval/denial decisions. This data is publicly available and used to monitor lending patterns for fair lending compliance. HMDA data has revealed persistent disparities in lending across racial and ethnic groups. The data is reported to regulatory agencies including the Federal Reserve and CFPB, which analyze patterns for discrimination.
Pro Tip
Lenders must collect demographic information for HMDA reporting; this data doesn't affect your approval or rates, it's only for regulatory monitoring.
Example
A lender reports all 500 mortgages applied for in a quarter, including approval rates by applicant demographic, enabling regulators to identify any patterns suggesting discrimination.