Federal Mortgage LawsQuestion 13 of 400
The primary purpose of the Home Mortgage Disclosure Act (HMDA) is to:
a.Set maximum interest rates on home loans
b.Require lenders to offer loans in every neighborhood
c.Guarantee approval for low-income applicants
d.Provide public loan data to help identify discriminatory lending and redlining patterns
Explanation
HMDA requires covered institutions to collect and report data on mortgage applications and originations so regulators and the public can detect potential discrimination, redlining, and unmet housing needs. It does not cap interest rates, mandate lending in every area, or guarantee approvals. Its function is transparency and monitoring, not rate control.
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