Who is primarily responsible for adhering to the Home Mortgage Disclosure Act (HMDA)?

The Home Mortgage Disclosure Act (HMDA) primarily places the responsibility for adherence on financial institutions. This federal law is designed to promote transparency in mortgage lending by requiring these institutions to report certain data about their mortgage lending activities. The intent is to help identify discriminatory lending practices and ensure that all consumers have equal access to mortgage credit.

Financial institutions, including banks and credit unions, must collect and report specific data related to home loan applications, such as the loan amount, the ethnicity of the applicants, and the disposition of those applications. They are also responsible for ensuring that this data is accurately reported to the appropriate federal agencies. This responsibility is critical in fostering an equitable lending environment and ensuring compliance with fair lending laws.

Other parties in the mortgage lending process, such as real estate agents, mortgage brokers, and government agencies, may play roles in the overall lending ecosystem, but it is financial institutions that are primarily charged with the legal obligations mandated by HMDA.