Which law mandates mortgage origination companies to collect demographic information about a borrower, including race and income?

The Home Mortgage Disclosure Act (HMDA) is the legislation that requires mortgage origination companies to collect and report certain demographic information about borrowers, such as race, ethnicity, sex, and income. The primary purpose of HMDA is to ensure transparency in the lending process and to facilitate the monitoring of lending patterns to promote fair housing practices. By collecting this data, regulators can analyze whether lenders are serving the housing needs of their communities, thereby aiming to prevent discriminatory lending practices. This law is crucial for understanding the demographics of those who are obtaining loans and for identifying potential biases in mortgage lending.

The other options focus on different aspects of mortgage regulations. The Homeowners Protection Act addresses private mortgage insurance cancellation, the Home Ownership Equity Protection Act pertains to high-cost mortgage disclosures to protect consumers from predatory lending, and the Mortgage Assistance Relief Services law relates to the regulation of businesses that offer services to help homeowners avoid foreclosure. Each of these laws serves a unique purpose within the mortgage industry, but only the HMDA specifically mandates the collection of demographic information from borrowers.