Finance
What is the Home Mortgage Disclosure Act (HMDA) primarily designed to do?
ASet maximum interest rates for residential mortgages
BRequire lenders to collect and report data on mortgage applications and loans to identify discriminatory lending patterns✓ Correct
CProvide insurance for residential mortgages
DRegulate escrow account procedures
Explanation
HMDA (Home Mortgage Disclosure Act) requires covered lenders to collect and publicly disclose data about their mortgage applications and originations, including borrower demographics. This data is used to identify potential discriminatory lending patterns (redlining) and assess whether lenders are serving their communities.
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