United States
Hong KongHMDA and what gets reported
The Home Mortgage Disclosure Act requires covered institutions to collect and report data on mortgage applications and originations, on a Loan Application Register, to identify discriminatory lending patterns.
A data collection statute rather than a conduct one, which is why it feels different from the rest of the syllabus.
What it is for
Identifying discriminatory lending patterns, and showing whether institutions are serving the housing needs of their communities.
It does not prohibit anything by itself. It makes patterns visible so that other laws can be enforced against them.
What gets reported
Data on applications and originations, recorded on a Loan Application Register: loan amount, purpose, property type and location, action taken, and demographic information about the applicant.
The demographic question
An applicant is asked to provide ethnicity, race and sex. They may decline.
Where an application is taken in person and the applicant declines, the originator must note the information based on visual observation or surname.
It feels wrong to record an observation the applicant declined to give. The requirement exists because a systematic pattern of declining would otherwise erase exactly the data the statute needs. It applies to in-person applications.
Who reports
Institutions meeting a loan-volume threshold set in 12 CFR 1003.2(g). The threshold has been revised more than once, so check the current figure before quoting it.
Not every lender reports, and a small originator may work somewhere that does not.
What it is not
Not a credit decision input. HMDA data is collected for reporting and must not influence the decision, which would be an ECOA violation.
Common questions
What is HMDA for?
Collecting mortgage application and origination data to identify discriminatory lending patterns and community service.
What is a Loan Application Register?
The record on which covered institutions report HMDA data.
What if an applicant declines to give demographic information?
On an in-person application, the originator must record it based on visual observation or surname.
Does every lender report HMDA data?
No. Reporting depends on meeting a loan-volume threshold that has been revised more than once.
Can HMDA data influence the credit decision?
No. Using it in the decision would be an ECOA violation.