1.) Explain the purpose of the Home Mortgage Disclosure Act.
2.) How does HMDA impact a neighborhood or community? Include examples with your explanation.
3.) Does the reporting of HMDA data to the federal government impact the lender? If yes, how?
www.mymortgagetrainer.com
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ReplyDeleteThe purpose of HMDA is to inform the public with information on whether financial institutions are serving the housing and credit needs of the communities where they're located. It also requires public disclosure of borrower data, and identify any possibility of discriminatory acts.
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It allows for lower socio-economic areas to have the same opportunities as the higher socio-economic areas. This also allows for money to come back to areas most in need.
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While it doesn't prohibit any specific activity by the lender, it does impact their inclusivity overall in the communities where they offer loans, in and beyond their geographic locations. They are held accountable for their lending practices by the required reporting each year.
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ReplyDeleteThe purpose of the HDMA is to find lenders who are redlining.
2.)
It allows for all geographic areas and segments of the population the same opportunities in lending. Every year lender are required to report their loan activity.
3.)
It doesn't prohibit any specific activity of lenders and it doesn't establish any quota system but it hold them accountable in their lending through the reporting and public scrutiny.
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ReplyDeleteThe HMDA's purpose is similar to all of the acts we have been learning about in this course in that it is calling mortgage lenders to a level of transparency in their record keeping for specific documents to protect the consumer
HDMA transparency requirements can help community leadership roles to understand their community better & how to support then in bringing economic & homeownership growth
ReplyDelete3 of 3
ReplyDeleteNo it does not effect them, but with the reporting it does raise awareness of all of the areas they serve with their products.
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ReplyDeleteTo provide equal access to banking and credit regardless of socio-economic status of any area
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It provides a better assurance for areas that all will be treated equally in regard to applying for and obtaining loans by holding companies accountable.
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It helps a company insure they are providing equal services in their area without regard to social or economic status
The above is from Sue Serkosky
Delete1 of 1: To keep the public informed of all actions taken for loans in a metropolitan location and show that they are not discriminating and giving equal credit to all.
ReplyDelete1. Purpose of the HMDA is to report the amount of loans with lender and consumer information. This in turn shows and helps communities and areas in need and to give all areas equal amount of credit and financing.
ReplyDelete2. If the other side of town has lower amount of homeowners the HDMA helps report that and spread the necessary banks and institutions around to help that area. Keeping opportunities equal for every socio-economic region.
3. Yes, it would have an impact on where a branch would most likely be able to expand their business.
2 of 2: Helps to keep economic fairness in all metropolitan areas, promote strong financial institutions to work in those areas and being fair in extending credit within the community.
ReplyDelete3 OF 3: Not as a company whole, but can effect a office in certain communities that show bad lending habits. Kinda like a yelp page. That can open doors for other lenders.
ReplyDelete1 of 3
ReplyDeleteThe purpose of HMDA is to inform the public with information on whether financial institutions are serving the housing and credit needs of the communities where they're located.
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It allows for lower socio-economic areas to have the same opportunities as the higher socio-economic areas. This also allows for money to come back to areas most in need.
3 of 3
While it doesn't prohibit any specific activity by the lender, it does impact their inclusivity overall in the communities where they offer loans, in and beyond their geographic locations. They are held accountable for their lending practices by the required reporting each year.
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ReplyDeleteprovide the public with information that will help show whether financial
institutions are serving the housing credit needs of the neighborhoods and communities in which
they are located.
A second purpose is to aid public officials in targeting public investments from the private sector
to areas where they are needed. Finally, this law requires the collection and disclosure of data
about applicant and borrower characteristics to assist in identifying possible discriminatory
lending patterns and enforcing antidiscrimination statutes
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It allows for all areas to have equal access to credit and banking opportunities. If this law wasn't in effect, areas that need credit and banking opportunities could decline.
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It doesn't prohibit any specific specific activity by the lender, it relies on public scrutiny for its effectiveness.