What type of information is included in HMDA data?

HMDA, or the Home Mortgage Disclosure Act, requires financial institutions to report specific information about mortgage lending activities to help ensure fair lending practices and the accessibility of credit. One key component of the data collected under HMDA is census tract information. This geographic data is crucial because it allows regulators and the public to assess lending patterns in different neighborhoods and demographic areas.

Understanding how lending varies across different census tracts enables authorities to identify potential discrimination or unfair lending practices. It helps in analyzing whether certain groups, based on race, ethnicity, or income level, might have less access to mortgage loans. Thus, the inclusion of census tract information in HMDA data plays an essential role in promoting transparency and accountability in the mortgage lending industry.

Other types of information like appraisal values, property tax rates, or loan interest rates do not fall under the reporting requirements of HMDA, which is primarily focused on lending practices and the demographics of borrowers rather than the specifics of property values or taxation.