What law requires large depository institutions to report their loan application records annually?

The Home Mortgage Disclosure Act (HMDA) is the law that mandates large depository institutions to annually report their loan application records. This regulation was established to provide the public with information regarding mortgage lending patterns and to help identify discriminatory lending practices.

By requiring these institutions to disclose data on their loan applications, the HMDA supports transparency in lending, allowing regulators and the public to analyze how funds are distributed across different demographics and geographic locations. This information is crucial in assessing whether financial institutions serve the housing needs of their community, and it aids in promoting fair lending practices by ensuring that loan applicants are treated equitably regardless of their race, ethnicity, or income level.

Other options, while important in the context of mortgage and credit laws, do not serve this specific purpose. For instance, the Real Estate Settlement Procedures Act (RESPA) focuses on providing consumers with information about the costs associated with closing a mortgage and ensuring they receive good faith estimates of these costs. The Equal Credit Opportunity Act (ECOA) prohibits discriminatory lending practices but does not require the reporting of loan application records. Lastly, the Fair Credit Reporting Act (FCRA) governs how consumer credit information can be collected and used but does not pertain to the reporting of loan applications by