Podcast
Questions and Answers
What should a lender do if an applicant provides incorrect or inappropriate information about their race or ethnicity?
What should a lender do if an applicant provides incorrect or inappropriate information about their race or ethnicity?
How may an applicant choose to handle the reporting of their race and ethnicity?
How may an applicant choose to handle the reporting of their race and ethnicity?
When is it allowable to describe information as 'not provided by the applicant'?
When is it allowable to describe information as 'not provided by the applicant'?
Which of the following information is NOT typically included in the application for a loan?
Which of the following information is NOT typically included in the application for a loan?
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What aspect of a loan application specifies how the applicant's race or ethnicity was collected?
What aspect of a loan application specifies how the applicant's race or ethnicity was collected?
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What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)?
What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)?
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Which agency was responsible for implementing Regulation C before the Consumer Financial Protection Bureau took over?
Which agency was responsible for implementing Regulation C before the Consumer Financial Protection Bureau took over?
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What type of properties are included in the definition of 'dwelling' under HMDA?
What type of properties are included in the definition of 'dwelling' under HMDA?
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When must lenders file the HMDA Loan Application Register (LAR)?
When must lenders file the HMDA Loan Application Register (LAR)?
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What information is NOT required to be reported under HMDA?
What information is NOT required to be reported under HMDA?
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Which of the following accurately describes the nature of data collected under HMDA?
Which of the following accurately describes the nature of data collected under HMDA?
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Which of the following is a requirement placed upon lenders due to HMDA?
Which of the following is a requirement placed upon lenders due to HMDA?
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Which group primarily uses the data obtained through HMDA reporting?
Which group primarily uses the data obtained through HMDA reporting?
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Study Notes
Home Mortgage Disclosure Act (HMDA)
- HMDA, 12 CFR Part 1003 (Regulation C), enacted in 1975, requires mortgage lenders to collect, report, and disclose data on loans.
- Regulation C's rule-writing authority transferred to the CFPB in 2011.
- HMDA is a disclosure law, not a prohibitory or quota law.
- The data is used by government agencies to allocate housing investments, address housing market failures, and monitor potential discrimination. Data is publicly available.
- Reporting is annual, based on information collected at loan application.
HMDA Reporting Requirements
- Reports cover loans secured by various residential structures (dwellings).
- "Dwelling" definition is broader than other federal laws; covers vacation homes, rental properties, condos, co-ops, manufactured/mobile homes––not recreational vehicles, temporary housing.
- Data includes applicant demographics (ethnicity, race, sex, age, gross income).
- Applicant-reported ethnicity/race is not corrected. Applicants can choose not to provide this data; when omitted, reporting by observation may be necessary.
- Information collection methods (e.g., mail, internet, telephone application) are recorded.
- Loan details, pricing, terms, and HOEPA status are reported.
- Property details (if not a pre-approval) are reported.
- Underwriting details (credit scores, LTV ratios, AUS use) are collected.
- MLO NMLS number included.
- Loan disposition information (withdrawn, denied, reasons for denial, secondary market sale details).
- The LAR (Loan Application Register) is a record maintained by lenders; submitted to the CFPB by March 1 of the following year.
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Description
This quiz explores the Home Mortgage Disclosure Act (HMDA), its requirements, and its implications for housing investments and discrimination monitoring. Learn about the reporting obligations, the types of dwellings covered, and the importance of the data collected by mortgage lenders. Test your knowledge on how HMDA impacts the housing market.