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Key Takeaways The Home Mortgage Disclosure Act (HMDA) is a law passed in 1975 that mandates mortgage lenders maintain certain records. The goal is to create greater transparency and to protect borrowers in the residential mortgage market.
HMDA Status: Although this loan is to an individual and the primary residence secures the loan, this loan is a business purpose loan. Business purpose loans are only reported if the purpose is to purchase, refinance or improve a dwelling. This loan would not be HMDA reportable.
What is the purpose? needs; assist public officials in distributing public investment; assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes.
The primary purpose is to identify urban areas where the availability of home financing at reasonable terms is limited.
The primary purpose is to identify urban areas where the availability of home financing at reasonable terms is limited.
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What Is Regulation C? Regulation C is the regulation that implements the Home Mortgage Disclosure Act of 1975. Regulation C requires many financial institutions to annually disclose loan data about the communities to which they provided residential mortgages.
HMDA requires lenders to report the ethnicity, race, gender, and gross income of mortgage applicants and borrowers. Lenders must also report information regarding the pricing of the loan and whether the loan is subject to the Home Ownership and Equity Protection Act, 15 U.S.C. 1639.
Under HMDA and Regulation C, a transaction is reportable only if it is an Application for, an origination of, or a purchase of a Covered Loan. These materials illustrate one approach to help determine whether a transaction involves a Covered Loan.
On November 12, the CFPB reminded institutions that effective January 1, 2022, pursuant to a final rule issued by the CFPB in April 2020, the threshold for reporting Home Mortgage Disclosure Act (HMDA) data about open-end lines of credit will change to 200 from the prior threshold of 500.
What is the purpose? needs; assist public officials in distributing public investment; assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes.

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