What is a primary objective of the Home Mortgage Disclosure Act (HMDA)?

The primary objective of the Home Mortgage Disclosure Act (HMDA) is to promote transparency and accountability in mortgage lending. This legislation aims to provide the public with information concerning the availability and terms of mortgage loans in various areas. By requiring financial institutions to collect and report data about their mortgage lending practices, HMDA focuses on creating a clearer picture of how loans are distributed across different demographic groups and neighborhoods.

This transparency helps regulators, researchers, and the public identify potential discriminatory lending practices, ensure fair access to credit, and hold lenders accountable for their lending behaviors. While the other options relate to important concepts in finance and lending, they do not encapsulate the core aim of HMDA as effectively as promoting transparency and accountability does.