The Home Mortgage Disclosure Act (HMDA) requires lenders to report on which aspect?

The Home Mortgage Disclosure Act (HMDA) requires lenders to report on their lending practices, specifically by collecting and disclosing data related to mortgage loan applications. The purpose of this requirement is to provide transparency and allow regulatory agencies and the public to monitor whether lenders are serving the housing needs of their communities without discrimination. By focusing on lending practices, HMDA aims to identify patterns of discrimination or disparities in lending based on race, ethnicity, and other demographic factors. This information helps to ensure fair lending and promotes equitable access to housing financing for all individuals.

In contrast, the other choices—loan application fees, interest rates, and borrower credit scores—are not the primary focus of HMDA reporting. While these factors may play a role in the overall lending process, HMDA specifically emphasizes the collection of data that reveals how lending practices affect different demographic groups, rather than the financial terms and conditions of specific loans or applicant characteristics.