What are lenders required to do under HMDA?

Lenders are required under the Home Mortgage Disclosure Act (HMDA) to keep records of their lending practices. This requirement is designed to promote transparency in the mortgage lending process and help identify potential discriminatory lending patterns. By collecting and reporting data on various aspects of their lending, such as the demographic characteristics of borrowers and the outcomes of loan applications, lenders contribute to a broader understanding of lending patterns in different communities. This data is crucial for regulatory agencies, policymakers, and researchers to assess how accessible mortgage credit is for different groups, thereby helping ensure compliance with fair lending laws.

The other options related to loan terms, competitive rates, and credit counseling do not fall under the specific requirements set by HMDA. While clear disclosures and competitive rates are important aspects of lending, they are governed by other regulations and laws, not HMDA explicitly. Providing credit counseling is a helpful service but is not mandated by HMDA for lenders.