A community organization in Chicago downloads publicly available federal data showing every covered lender's mortgage applications, originations, and denials by census tract, applicant race, and income. The data reveals that one major bank approved 85% of applications in predominantly white zip codes but only 34% in predominantly Black zip codes with comparable income profiles. Without this mandatory data-collection program, the disparity would have been invisible. Federal regulators use the same dataset to launch a fair-lending probe. Which federal statute requires lenders to compile and report the dataset that made the disparity visible?
Correct Answer
C) Home Mortgage Disclosure Act (HMDA)
The dataset described — every covered lender's applications, originations, and denials, broken out by tract, race, and income — is exactly what the federal mortgage-data reporting statute requires. That statute is HMDA, which mandates collection and public reporting of this lending information.
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