Home Mortgage Disclosure Act
From Wikipedia, the free encyclopedia
The Home Mortgage Disclosure Act (or HMDA) was passed in 1975. It requires financial institutions to maintain and annually disclose data about home purchases, home purchase pre-approvals, home improvement, and refinance applications involving 1 to 4 unit and multifamily dwellings. It also requires branches and loan centers to display an HMDA poster.
The HMDA was designed by the Federal Reserve Board in order to:
- Help public officials to distribute public-sector investments
- Discover if financial institutions are serving housing needs of communities
- Identify where there are discriminatory lending practices
