Understanding the Home Mortgage Disclosure Act

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Originally enacted in 1975, the Home Mortgage Disclosure Act (HMDA) was designed to require lending institutions to make public loan information and data to the government.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.


The data collected in 2012 is most relevant right now. After the crash of the housing market, home sales and loan approvals were low for quite some time. The 2012 calendar year saw considerable increases not only in new home purchases but in l home improvements and  refinances as well. In 2010, for example, there were 2,213,631 new home purchases while in 2012 there were 2,331,989. The numbers continue to rise with, of course, some areas of the country doing better than others. Areas of New York continue to see changes upwards of 10-30%.

What does this mean in terms of loans? Those numbers are also increased – considerably. In 2010, 47.4% of loan issued were conventional, with 40.8 FHA and the balance made up of VA and RHS/FHA loans. In 2012, the number of conventional loans was up to 55.3% while the number of FHA loans was down to 30.5%. This shows a considerable shift in the ease of obtaining a conventional loan – great news for new and seasoned buyers.

Data collected via the Home Mortgage Disclosure Act proves that the housing market is improving – slowly but surely. That doesn’t mean there won’t be any obstacles, though.

Feel free to contact Sam Fine to discuss your loan needs and individual situation. You may be surprised at the options now available to you.

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