“Home Mortgage Disclosure Act” – a federal law that requires financial institutions to collect and report data about their mortgage lending activity to help identify possible discriminatory lending patterns and ensure that all individuals and communities have access to fair and equal credit opportunities.
Under HMDA, financial institutions are required to collect and report information about the race, ethnicity, gender, and income of mortgage applicants, as well as information about the type of mortgage product they applied for, the loan amount, and the outcome of the application.
This information is then compiled and made available to the public which can be used to identify disparities in mortgage lending and to promote fair lending practices. Additionally, the data collected under HMDA is used by government agencies such as the Consumer Financial Protection Bureau (CFPB) to enforce fair lending laws and regulations.