Living By The HDMA Act

All online lenders involved in real estate home mortgage loans are required to abide by the Home Mortgage Disclosure Act (HMDA), that is also known as “Regulation C”. They are required to provide information that is meant to prevent any discrimination in lending practices. For instance, all internet lenders have to garner information on every prospective borrower’s national origin, race, sex, income and other information. This is meant to permit monitoring for discriminatory lending practices.

Regulation C also applies to certain financial institutions, such as banks, credit unions, savings associations and other mortgage lending institutions. HMDA is especially subjected onto mortgage loans or home improvement loans for the acquisition and/or repair of residential dwellings, including condominiums, manufactured homes, mobile homes, or multi-family dwellings.

The regulation also intends to provide public information of a financial institution’s record of lending, in the communities where they are based. It is meant to assist public officials in scrutinizing public programs that are designed to draw investments by the private sector, by studying a lender’s mortgage loan record in order to determine whether there are any prejudiced practices against any classes of individuals.

Now, this information should be found on the Real Estate Loan Application Form 1003 in the government monitoring section. It would request a borrower for all information regarding national origin, race, sex, income relied on, sum of the loan, intention of the loan, location of property, and the action taken and date of such action.

The regulation would also allow the borrower an option as to whether they would like to provide the data concerning national origin, race and sex and they do not have to provide information on national origin, race, or sex if the application is taken by a telephone interview.

Entry Filed under: Manufactured Homes,mortgage programs

Leave a Comment


Required, hidden

Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Trackback this post  |  Subscribe to the comments via RSS Feed

Most Recent Posts