In what year was the Home Mortgage Disclosure Act enacted, and what does it require?

In what year was the Home Mortgage Disclosure Act enacted, and what does it require?

• A. Enacted in 1975; requires mortgage data disclosure to the public.
• B. Enacted in 1980; prohibits mortgage data disclosure.
• C. Enacted in 1990; requires financial privacy protections.
• D. Enacted in 1968; regulates credit card advertising.

Answer: (A)

The important idea here is how HMDA uses data to promote fair and transparent mortgage lending. Enacted in 1975, it requires mortgage data disclosure to the public. Lenders must gather and report data on mortgage applications and loan originations so regulators and the public can review lending patterns by location, applicant characteristics, and outcomes. This transparency helps identify potential discriminatory practices and ensures lending serves the community’s needs, supporting fair housing and fair lending enforcement. The other options describe different years or purposes that don’t align with what HMDA actually does.

The important idea here is how HMDA uses data to promote fair and transparent mortgage lending. Enacted in 1975, it requires mortgage data disclosure to the public. Lenders must gather and report data on mortgage applications and loan originations so regulators and the public can review lending patterns by location, applicant characteristics, and outcomes. This transparency helps identify potential discriminatory practices and ensures lending serves the community’s needs, supporting fair housing and fair lending enforcement. The other options describe different years or purposes that don’t align with what HMDA actually does.