December 31, 1975 - Home Mortgage Disclosure Act

Policy Name: Home Mortgage Disclosure Act of 1975, (S. 1281)

Date: Effective Dec. 31, 1975

The Home Mortgage Disclosure Act of 1975 (HMDA) required certain financial institutions to provide mortgage data to the public. HMDA was enacted in response to public concern over credit shortages in certain urban neighborhoods in the 1970s. HMDA required public disclosure of mortgage information that could (1) assist in determining whether financial institutions were serving the housing credit needs of their communities; (2) aid public officials distributing public-sector investments; and (3) help identify discriminatory lending patterns.

Financial institutions must report HMDA data to their respective regulator if these institutions fulfill certain criteria, such as having assets above a specific threshold. Institutions covered by HMDA are required to maintain a Loan Application Register (LAR). Each time an individual applies for a mortgage from an institution covered by HMDA, the institution must make an entry into LAR, noting information such as the date of application, loan amount, race of the borrower, and other characteristics.

In 2011, the Dodd-Frank Wall Street Reform and Consumer Protection Act added new data collection requirements to HMDA and transferred rulemaking authority for HMDA, known as Regulation C, from the Federal Reserve Board to the Consumer Financial Protection Bureau.