Understanding the Home Mortgage Disclosure Act
Originally enacted in 1975, the Home Mortgage Disclosure Act (HMDA) was designed to require lending institutions to make public loan information and data to the government. The purpose of the act is to make it easier for the government to identify lending patterns that may be considered discriminatory, to help attract private investments, and to make sure lenders are actually serving their communities by helping them to meet their needs in terms of ongoing housing. While this may not have been as big a deal in 1975, changes in the economy and the most recent lending and housing crisis have bought the HMDA to the forefront of the minds of many legislatures and government officials. For you, as a consumer, it is important to recognize the act as a tool you can use to protect yourself against lending discrimination.