Home Mortgage Disclosure Act (HMDA) and Regulation C

Updated 2026-05-17

The Home Mortgage Disclosure Act (HMDA) is a federal statute (12 U.S.C. §§ 2801 et seq.) enacted to promote transparency in mortgage lending. Regulation C (12 CFR Part 1003) implements HMDA, requiring most financial institutions to collect and publicly disclose specific data about their mortgage lending activity, including loan applications and originations.

Purpose

The primary purposes of HMDA and Regulation C are to:

• Determine whether financial institutions are serving the housing needs of their communities.
• Assist public officials in distributing public-sector investments to attract private investment to areas where it is needed.
• Identify possible discriminatory lending patterns and enforce fair lending laws.

Scope and Data Collection

HMDA and Regulation C apply to a wide range of mortgage loans, including those insured by the Federal Housing Administration (FHA) (FHA). Financial institutions must collect and report a wide range of data points for each loan application and origination. This includes:

• Applicant Demographics: Race, ethnicity, and sex of the applicant.
• Loan Characteristics: Loan purpose, property type, loan amount, interest rate, and reasons for denial.
• Property Location: Information about the property's location.

This comprehensive data collection is crucial for regulatory agencies and the public to monitor lending practices and ensure compliance with fair housing and fair lending laws.

Reporting and Public Disclosure

The collected data is compiled into a Loan Application Register (LAR) and submitted annually to the appropriate federal agency, typically the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The aggregated data is then made publicly available, allowing researchers, consumer advocates, and regulators to analyze lending trends and identify potential issues like Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA).

Regulation C is crucial for transparency in the mortgage market and for monitoring compliance with fair lending laws. Mortgage Loan Originators (MLOs) must understand these data collection and reporting requirements.