What is the purpose of HMDA?

What is the purpose of HMDA?

The Home Mortgage Disclosure Act (HMDA) is a law passed in 1975 that mandates mortgage lenders maintain certain records. The goal is to create greater transparency and to protect borrowers in the residential mortgage market.

What are the three purposes of HMDA?

The data- related requirements in HMDA and Regulation C serve three primary purposes: (1) to help determine whether financial institutions are serving their communities’ housing needs; (2) to assist public officials in distributing public investment to attract private investment; and (3) to assist in identifying …

What are HMDA requirements?

HMDA requires lenders to report the ethnicity, race, gender, and gross income of mortgage applicants and borrowers. Lenders must also report information regarding the pricing of the loan and whether the loan is subject to the Home Ownership and Equity Protection Act, 15 U.S.C. 1639.

What HMDA means?

Home Mortgage Disclosure Act
The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB).

Who regulates the CRA?

Three federal regulators—the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), and the Board of Governors of the Federal Reserve System—share an oversight role with respect to the CRA.

What is HMDA compliance?

The Home Mortgage Disclosure Act (HMDA) requires credit unions to disclose certain information regarding loans originated or purchased by the credit union. Credit unions that are subject to the final regulation will need to have plans and processes in place well before the effective date. …

What is HMDA reportable?

A consumer purpose, dwelling secured loan is HMDA reportable regardless of purpose. A business purpose, dwelling secured loan is only HMDA reportable if the purpose of the loan is to purchase a dwelling, refinance a dwelling or improve a dwelling or the real property on which the dwelling is located.

What does HMDA reportable mean?

dwelling secured loan
A consumer purpose, dwelling secured loan is HMDA reportable regardless of purpose. A business purpose, dwelling secured loan is only HMDA reportable if the purpose of the loan is to purchase a dwelling, refinance a dwelling or improve a dwelling or the real property on which the dwelling is located.

What are CRA loans?

The Community Reinvestment Act (CRA) is a law intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound banking operations.

Does respa apply to reverse mortgages?

Specifically, the TILA- RESPA rule does not apply to HELOCs, reverse mortgages or mortgages secured by a mobile home or by a dwelling that is not attached to real property (i.e., land). The TILA-RESPA rule includes some new restrictions on certain activity prior to a consumer’s receipt of the Loan Estimate.

Who does CRA apply to?

CRA applies to FDIC-insured depository institutions, such as national banks, savings associations, and state-chartered commercial and savings banks.

Was the CRA successful?

The overwhelming majority of studies find that the CRA has succeeded in increasing lending in low- and moderate-income neighborhoods. Inner cities have not yet been wholly transformed by the CRA, but they have been demonstrably improved by the act’s implementa- tion.

What is HMDA and why is it important?

The Home Mortgage Disclosure Act (or HMDA, pronounced HUM-duh) is a United States federal law that requires certain financial institutions to provide mortgage data to the public.

What does HMDA stand for in banking?

The Home Mortgage Disclosure Act (HMDA) is a federal act approved in 1975 that requires mortgage lenders to keep records of certain key pieces of information regarding their lending practices which they must submit to regulatory authorities. It was implemented by the Federal Reserve through Regulation C.

What is the name of the rules that implement HMDA?

The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB). Regulation C, requires lending institutions to report public loan data.

Who reports HMDA data?

Banks, savings and loan associations, credit unions, and mortgage and consumer finance companies are required to report HMDA data if they meet the law’s criteria for coverage. • The extent of the lender’s housing-related lending activity.