Which law requires mandatory reporting of data on home mortgage applications?

The Home Mortgage Disclosure Act (HMDA) is the law that requires mandatory reporting of data on home mortgage applications. This legislation was enacted to provide the public and government with information on mortgage lending practices, promoting transparency and accountability within the lending industry. It aims to ensure that lenders are offering fair access to credit and that they are not engaging in discriminatory lending practices.

HMDA requires financial institutions to collect and report data on mortgage applications, including information about the demographics of applicants and the geographic distribution of loans. By analyzing this data, regulators and stakeholders can identify potential disparities in lending patterns, helping to ensure compliance with fair lending laws and policies.

Understanding the context and implications of HMDA is essential for professionals in regulatory compliance, as it not only influences the operations of lending institutions but also helps to protect consumers and foster equitable access to housing finance.