What is the threshold for reporting under the Home Mortgage Disclosure Act (HMDA)?

The correct threshold for reporting under the Home Mortgage Disclosure Act (HMDA) is that an institution must report if it originates 25 or more home purchase loans, home improvement loans, or refinancings in a calendar year. This requirement is established to ensure transparency in lending practices and to monitor for discrimination in lending. By setting this threshold, HMDA focuses regulatory attention on those financial institutions that engage in a significant volume of mortgage lending, making the data collection and reporting more manageable and relevant.

In this context, the other options do not align with the official guidelines set forth by HMDA. A lower threshold would not capture the necessary data from institutions that significantly influence the lending landscape, while the absence of a reporting threshold would imply that all institutions must report regardless of their activity level, which could inundate the reporting system with irrelevant data. This design ensures that the focus remains on larger lenders who potentially have a greater impact on the housing market and communities.