The Home Mortgage Disclosure Act (HMDA) is a federal law that requires lenders to collect and report data on certain mortgage applications, including those that are denied. This data is used to identify and eliminate patterns of lending discrimination.

Who Must Comply with HMDA?

HMDA applies to all lenders that originate at least 25 residential mortgage loans in a calendar year. This includes banks, credit unions, mortgage companies, and other financial institutions.

What Information Must Be Collected and Reported?

Lenders are required to collect and report information on all mortgage applications, regardless of whether they are approved or denied. This information includes the applicant's name, address, race, ethnicity, gender, and income; the property address; the loan amount; and the loan terms.

How Must HMDA Data Be Reported?

Lenders are required to report HMDA data to the Consumer Financial Protection Bureau (CFPB). The CFPB uses this data to produce an annual report on mortgage lending activity.

HMDA Notice Requirements

In addition to collecting and reporting HMDA data, lenders are also required to post a HMDA notice. This notice must be posted in a conspicuous place in the lender's main office and in each branch office. The notice must include the following information:

• A statement that the lender is subject to HMDA
• The lender's contact information
• A statement that the applicant may request a copy of the HMDA disclosure statement
• A statement that the applicant may file a complaint with the CFPB if they believe they have been discriminated against

Penalties for HMDA Violations

Lenders who violate HMDA may be subject to civil penalties, including fines and restitution. They may also be required to take corrective action to address the violations.

Conclusion

HMDA is an important law that helps to ensure that all borrowers have access to fair and equal lending opportunities. The HMDA notice requirements are an important part of this law. By posting a HMDA notice, lenders help to inform applicants of their rights and responsibilities under HMDA.

Frequently Asked Questions

1. What is the purpose of the HMDA notice?

The purpose of the HMDA notice is to inform applicants of their rights and responsibilities under HMDA. The notice includes information about the lender's HMDA reporting requirements, the applicant's right to request a copy of the HMDA disclosure statement, and the applicant's right to file a complaint with the CFPB if they believe they have been discriminated against.

2. Where must the HMDA notice be posted?

The HMDA notice must be posted in a conspicuous place in the lender's main office and in each branch office.

3. What information must be included in the HMDA notice?

The HMDA notice must include the following information:

• A statement that the lender is subject to HMDA
• The lender's contact information
• A statement that the applicant may request a copy of the HMDA disclosure statement
• A statement that the applicant may file a complaint with the CFPB if they believe they have been discriminated against

4. What are the penalties for violating HMDA?

Lenders who violate HMDA may be subject to civil penalties, including fines and restitution. They may also be required to take corrective action to address the violations.

5. How can I file a complaint about HMDA discrimination?

If you believe you have been discriminated against by a lender, you can file a complaint with the CFPB. You can do this online or by mail. The CFPB will investigate your complaint and take appropriate action.