What disclosures are mandated under the Home Mortgage Disclosure Act (HMDA)?

Prepare for the CFPB Mortgage Compliance Training Test. Study with flashcards and detailed questions and explanations. Master your knowledge and excel in your exam!

The Home Mortgage Disclosure Act (HMDA) requires lenders to gather and report specific data concerning mortgage lending patterns to ensure that financial institutions are serving the housing needs of their communities and to assist in identifying any discriminatory lending practices. One of the primary disclosures mandated under HMDA relates to mortgage loan applications, which includes information about the applicant's demographics such as race, ethnicity, and gender, as well as information about the loan itself. This data collection and disclosure aim to promote transparency in lending and enable regulators to monitor fair lending practices.

This requirement is crucial for analyzing lending trends and assessing whether certain demographic groups are underserved in the market. The other options listed do not align with the objectives or stipulations of HMDA, as they focus on profit disclosures, borrower credit score reporting, or property value determinations, which are not part of the HMDA reporting requirements.

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